LGP Slovakia / News / The right legal solutions for entrepreneurs

The right legal solutions for entrepreneurs

Entrepreneurs have big debts due to the pandemic situation. What to do with business if they do not rule anymore?

The right legal solutions for entrepreneurs

In cooperation with the economic website and the monthly magazine INDEX, we bring you an article where we will introduce you to the possibilities of solving the financial difficulties of entrepreneurs in Slovakia who were forced to close their operations in connection with a pandemic.

Many of them tried to keep their business without redundancy for as long as possible during the first wave and to take advantage of state aid. The situation was mostly complicated during the second wave when many entrepreneurs in Slovakia found themselves in an unflattering situation. To keep their hopes of restarting their business after the measures were relaxed, they borrowed money, used family savings, and had debts. Many have failed to do so, have been unable to open their operations and are currently looking for the right solution to close their business.

Martin Jacko, from our law firm, explains in the article the instruments that can be used in such a situation, especially how the instrument of the so-called small bankruptcy was changed, what is the difference between small and (large) bankruptcy and when entrepreneurs can use personal bankruptcy or liquidation to close a business.

He also points to another important fact: "Termination of business activity is a costly and administratively demanding process, the costs of which can climb to a sum of thousands depending on the size of the entity." At the same time, however, he adds: "According to him, the only solution does not always have to be to close the business. Sometimes it is enough to interrupt the activity."

In the article, we will also look at the so-called informal restructuring so temporary protection for entrepreneurs in financial difficulties, which replaces temporary protection during a pandemic. You can read the full text of the article, which is only in Slovak language, at: Entrepreneurs have big debts due to the pandemic situation. What to do with business if they do not rule anymore?

We believe that the information provided in the article has provided you with at least a basic overview of the possibilities and alternatives for resolving the unenviable financial situation that many entrepreneurs have found themselves in. If you are interested, we are ready to provide you with legal assistance with the analysis of your specific situation.