How to declare bankruptcy
Video: What Actually Happens When You File For Bankruptcy 2024, July
On March 1, 1993, the Law of the Russian Federation on the insolvency of an enterprise, that is, bankruptcy, entered into force. The insolvency of an enterprise may be declared by the arbitration court after a voluntary declaration of this fact by the debtor and voluntary liquidation of the enterprise. The law provides for determining the insolvency of an enterprise if it is not possible to fulfill the requirements of creditors within three months and the excess of debts over the assets of the enterprise.
Instruction manual
1
In order to declare your company bankrupt, you must file with the head of the company to the arbitration court when the insolvency is caused not by temporary difficulties in managing the company and the financial and economic insolvency of the company, but by the presence of debts exceeding the financial value of the assets of the company.
2
Also, when an enterprise is not able to pay any of its debts, including making payments for heat and electricity and paying off wage arrears with its employees.
3
The arbitral tribunal sends an audit to the enterprise. Requires a balance sheet, charter, a list of all creditors with a breakdown of payables and receivables.
4
If during the audit and investigation it turns out that the company is able to pay its debts and accounts and financial difficulties are temporary, then the company cannot be declared bankrupt.
5
If it is ascertained during the inspection and investigation that the assets of the enterprise are less than the debt on debts and loans, the enterprise is declared bankrupt. All property and assets of the enterprise are described and sold.
6
The proceeds from the sale of property and assets of the enterprise are used to pay wages to workers, settlements on debts and loans, as well as to pay for the work of the arbitration court and the audit and financial verification of the solvency of the enterprise.
