Even then, it can end up in bankruptcy or sometimes in restructuring.

It may sound unconventional to some, but civil associations can also end up in bankruptcy or restructuring. There are certain differences compared to commercial companies, but the fact that a civil association “incurs debts” does not mean that it can continue to function without problems.

In bankruptcy:
         in principle, a civil association can end if it is in bankruptcy and therefore insolvent (= it has at least two monetary obligations to more than one creditor 90 days after the due date) or extended (= more liabilities than assets);
        the advantage is that the law does not state a fine to statutory holders of the civil association should they file for bankruptcy more than 30 days after they learned or should have learned about their bankruptcy.

In restructuring:
       civil associations that, among other things, do business, or they have in their scope activities that can be considered entrepreneurial (e.g. providing advertising space, renting and subletting premises, etc.).

In liquidation:

such a situation can only concern an association that has no debts or is able to settle them on their own. In that case, the process is the fastest and least painful.

Thus, even a civil association must pay attention to its financial situation and resolve its obligations in order to avoid the unpleasant consequences of bankruptcy or restructuring.

If you have any questions about this topic, do not hesitate to contact terem.legal

Článok What to do with civil association that has debts? je zobrazený ako prvý na Terem.legal.