Bankruptcy of the organization

The term "bankruptcy" is most often associated with such concepts as "financial disaster", collapse, the end of hopes. But not everything is as bad as it seems at first glance.

Undoubtedly, bankruptcy is an unpleasant and sad procedure. However, the process is absolutely legal and legalized by the legislation of the Russian Federation.

The bankruptcy procedure will be a lifeline in the event that an individual or legal entity finds itself in a difficult financial situation.

But before you try to take steps in this direction, you should analyze the procedure in detail and understand what bankruptcy is as a legal phenomenon.

In accordance with Russian law, the bankruptcy procedure of a legal entity leads to the subsequent liquidation of the enterprise.

The whole procedure is carried out in stages, resulting in a way out of the current situation.

The first stage is observation. It begins after the filing of a statement of claim and is conducted by the arbitration court.
The essence of observation is that all restrictions and arrests are removed from the enterprise, it begins to conduct its activities, only with some restrictions.
The external manager observes and controls the work to assess the actual situation.

The second stage is financial recovery. After the report of the external manager, the procedure for restoring its solvency is applied to the debtor. The company is given a deadline to pay off all debts. and restore normal activity. Simply put, a third party vouches for the enterprise, which helps the latter pay. Learn more about debt collection procedures.
The third stage - external management. Rehabilitation procedure, which appoints the arbitration court. For the appointment of external management, there must be a basis for continuing the activities of the enterprise.

The fourth stage is the settlement agreement, an agreement between the debtor and creditors without the involvement of judicial authorities. It indicates the termination of the bankruptcy procedure and the elimination of the activities of temporary and external managers, administrative and competitive interference.

The main goals of the bankruptcy of the organization

In accordance with the legislation of the Russian Federation, bankruptcy can be interpreted in two ways: in the first case, it is a legal fact of inability to pay debts, in the second, it is a judicial procedure that takes place upon application.

Accordingly, the purpose of the bankruptcy procedure will be different in each case.

Usually, bankruptcy procedure has the following objectives:

release of a legal or natural person from obligations to creditors;
saving either .

The liquidation of the enterprise occurs in the most deplorable state of affairs. Usually, such companies are already inefficient and unstable.

This can be prevented only with effective actions of all participants in the process, aimed in the same direction.

Still the main goal, in most cases, is the preservation of the enterprise bringing it out of bankruptcy. Learn more about the procedure and forms of reorganization of enterprises.

Organization bankruptcy procedure

prescribed by law bankruptcy proceedings includes certain stages:

filing an application by the plaintiff, which can be either the debtor himself or the creditor or a person authorized by the state body. Read more about the types and methods of resolving corporate disputes;
appointment by the court of the main bankruptcy procedures: supervision, financial recovery, external management, bankruptcy proceedings;
decision and its entry into force.

Features of bankruptcy of a legal entity

With the general stages of the procedure, the bankruptcy of a legal entity has its own characteristics and nuances, which you need to know about.

First of all, a legal entity whose debt to creditors is more than 100 thousand rubles and is not paid within three months (minimum period) can be declared bankrupt.

Both the owner and his creditor have the right to apply.

If the business owner files an application on his own, then the bankruptcy procedure is called voluntary. This gives a number of certain advantages: the owner has the right to sell the property at prices that he considers adequate in this situation.

Such a procedure will be long, as all stages will be passed: observation, rehabilitation, external management, bankruptcy proceedings and amicable agreement.

All this is aimed at rehabilitation and providing an opportunity to pay off debts..

When applied by creditors, bankruptcy is considered involuntary, and the owner is deprived of doing business on his own.

The bankruptcy trustee is appointed by the creditors.

This is a strong minus, since the debtor's property will be sold at auction, almost for next to nothing.

Bankruptcy of an individual

The fact that any individual can declare himself bankrupt was out of the question before.

In 2015, the situation changed dramatically and now, from October 1, 2015, every representative of society who has debts to banks or the state can declare himself bankrupt.

Moreover, both the debtor and the creditor have the right.

Directly, the bankruptcy procedure for an individual begins with the fact that the court assesses the solvency of the latter.

The adoption of the law on bankruptcy of individuals caused many debtors to want to fall into this category.

However, only those who have the amount of debt is more than half a million rubles and the minimum period of non-payment on loans is 3 months. Only then can a person declare himself bankrupt.

The court proposes to solve the problem in three ways:

conclusion of a peace agreement;
debt restructuring;
organization of trades.

The settlement agreement provides for a compromise agreement between the parties. For example, as payment for a debt, the creditor agrees to receive some property, even if of a lower value.

The method of debt restructuring is possible only in cases where the debtor has at least some income. If it is impossible to comply with the first two requirements, there is only one way out - bidding.

During the procedure, the court determines the existence of property, the proceeds of which can be used to pay off a debt or income opportunities, some of which can also be used as loan payments. See additionally what liability is provided for by law for non-payment of a loan.

From the moment the court declares a person bankrupt and makes an appropriate decision, an individual is considered bankrupt for 5 years.

Terms of the bankruptcy of the organization

The total duration of the bankruptcy procedure depends on the timing of its stages.

Observation can be carried out throughout the year.

A maximum period of two years is allotted for financial recovery.

External management can take place for a year and a half, plus an additional 6 months. Different terms can be spent on a settlement agreement, depending on the situation.

Simplified procedure for bankruptcy of an organization

In some situations, the law provides for a simplified bankruptcy procedure.

Some companies have such a debt that there is only one way out - the complete liquidation of the enterprise.

For example, a company owes more than two million to its creditors and is unable to pay them in any case.

It is absolutely clear that it makes no sense to carry out such stages of bankruptcy as rehabilitation and external management of the enterprise. The competitive proceedings are immediately appointed.

The proceeds from this finance are distributed among creditors in proportion to their investments in the company, and the enterprise itself is closed. In other words, liquidate.

Given all the above information, it is easy to guess that in case of unsuccessful business management, lack of funds to pay debts and the like - voluntary bankruptcy, declared on time, gives every chance to continue the activities of a legal entity and a good opportunity to correct the situation in your favor.

Frequently asked questions about the bankruptcy of an organization

What is the purpose of supervising the bankruptcy process?

Supervision is applied to the debtor in order to:

ensuring the safety of the debtor's property;
compiling a register of creditors' claims;
holding the first meeting of creditors.

In what cases can not be appointed observation?

Observation does not apply:

to the debtor in respect of which the decision on liquidation has been made;
to an absent debtor;
to organizations engaged in illegal activities to raise funds;
to citizens who are not individual entrepreneurs.