felszámolási

Felszámolási refers to the process of liquidation in Hungarian law. It is a legal procedure initiated when a company or business entity becomes insolvent and is unable to meet its financial obligations. The primary goal of felszámolási is to wind up the affairs of the insolvent entity in an orderly manner, sell its assets, and distribute the proceeds to its creditors. This process is overseen by a court-appointed liquidator who takes control of the company's assets and operations.

The initiation of felszámolási typically begins when a creditor files a petition with the court, or in some cases, the company itself may voluntarily initiate the process. The court then reviews the petition and, if deemed appropriate, officially opens the liquidation proceedings. During this period, the company's management loses its authority, and all ongoing business activities are usually ceased, except for those necessary to facilitate the liquidation.

The liquidator's duties include identifying and securing all company assets, which may involve real estate, inventory, intellectual property, and financial holdings. These assets are then sold, often through auctions or private sales, to generate funds. The collected funds are used to pay off the company's debts in a legally defined order of priority. Secured creditors are typically paid first, followed by unsecured creditors, and finally, any remaining funds may be distributed to shareholders.

Felszámolási proceedings can be complex and lengthy, often involving legal disputes and negotiations among creditors. The process concludes when all assets have been liquidated, all creditors have been paid to the extent possible, and the court formally dissolves the legal entity. This ensures that the insolvent entity ceases to exist and that its affairs are brought to a definitive end.