How to declare yourself bankrupt

The question of how an individual entrepreneur to declare himself bankrupt is often faced by those whose business brought only losses and debts. In this case, insolvency is the best way to end the burden of financial obligations once and for all. Let's see what should be done in this case and what assistance can be provided to the IP by the employees of the Debt.Net project.

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Necessary first step

Even before the changes made to the bankruptcy law, individual entrepreneurs had the opportunity to use this procedure. However, despite all the practice that has developed over the years, the new rules have significantly changed the bankruptcy procedure for individual entrepreneurs. So, what does an entrepreneur need now to sue their bankruptcy?

First of all, innovations touched preliminary actions. If earlier it was possible to simply go to court, now it is first necessary to make an entry in a special state register, indicating in it the intention to become bankrupt. Such an entry must be made no less than 15 days before the application itself is submitted for consideration to the arbitration court of the region where the IP is registered.

When can a sole proprietorship go bankrupt?

According to the law, an entrepreneur can become insolvent in two cases:

when he can no longer pay his debts to creditors;

when he is unable to repay mandatory payments to state bodies.

In the first case, one of the creditors can act as an applicant, in the second - the leadership of the relevant authority (tax office, etc.).

In addition, the IP itself can apply, subject to the following conditions:

settlement of debts to one of the creditors leads to the fact that it will no longer be possible to pay off all the others;

the amount of debts is higher than the total value of the property at the disposal of the individual entrepreneur.

How to declare yourself bankrupt in court

In order to take advantage of the bankruptcy procedure, an individual entrepreneur must file an application with the arbitration court. The application must be accompanied by a number of documents confirming both the amount of debts and the impossibility of repaying them. In particular, this will require:

documents on which debts arose (contracts, claims, demands for payment from state bodies, etc.);

an extract from the register stating that the person is an individual entrepreneur;

lists of debtors or creditors of individual entrepreneurs drawn up in accordance with the norms of the legislation;

a complete inventory of the property;

certificates from banks on the availability of accounts.

The list is far from complete - depending on the specific situation, other documents will be required.

How can Debt.Net specialists help?

If your business has fallen into decline and the only way out of the impasse is bankruptcy, you should take advantage of the help offered by the Debt.No project. Our employees will advise you, conduct a free analysis of the financial situation, and then professionally collect a package of documents, send them to the court and win the case.

That is why, if the question arose of how an individual entrepreneur to declare himself bankrupt, the answer is simple: just contact Debt.Net. All further steps cease to be your problem and become our work.