Insurance terminology explained in simple terms
What Is Delayed Filing of Insolvency?
Delayed insolvency or delayed filing of insolvency occurs if the insolvency or over-indebtedness of a company is not reported in good time.
The obligation to file for insolvency exists for the members of the representative body of a company, i.e. managing directors or shareholders of an LLC or the board of directors of a public company. They must file for insolvency without undue delay, but no later than 60 days after the occurrence of insolvency or over-indebtedness.
Debt default occurs if the debtor is unable to meet the due payment obligations and it is unlikely that they will be able to obtain the necessary means of payment soon.
Term: Delayed Insolvency
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