companyfizetképtelen

Fizetképtelen is a Hungarian term that translates to "insolvent" or "unable to pay debts" in English. It refers to a legal and financial state where a company or individual is no longer able to meet its financial obligations as they become due. This can encompass a range of liabilities, including payments to suppliers, employees, lenders, and tax authorities.

Insolvency is a serious condition that can lead to various legal proceedings. A key distinction in Hungarian law is between illiquidity (fizetési nehézség) and insolvency (fizetőképesség hiánya). Illiquidity suggests temporary financial difficulties that can be overcome, while insolvency indicates a more permanent inability to pay.

When a company becomes insolvent, it may trigger formal procedures such as liquidation (felszámolás) or bankruptcy (csődeljárás). Liquidation typically involves the winding up of the company's affairs, the sale of its assets, and the distribution of proceeds to creditors. Bankruptcy, on the other hand, can sometimes involve a restructuring plan to allow the company to continue operating while addressing its debts.

The determination offizetképtelen status is often made by courts based on evidence of the company's financial situation. Directors and management have a legal duty to act in the best interests of the company and its creditors, which includes taking appropriate action when insolvency looms. Failure to do so can result in personal liability for company officers.