Bankruptcy is the debtor’s inability recognized by the arbitration court to fully satisfy the creditors' claims for monetary obligations, for the payment of severance pay and/or for the payment for labor services to persons who work or have worked under an employment contract, and/or to fulfill the obligation to pay mandatory payments.
When and why can a company be declared bankrupt?
Who declares bankruptcy?
The debtor, creditor or authorized body may declare the bankruptcy petition.
The debtor is obliged to apply to the arbitration court within a month from the date of detection of signs of bankruptcy, otherwise the law provides for liability for violation of this period.
If the debtor does not pay the debts, and at the same time does not apply to the court with a petition for declaring bankrupt, then such a statement may be submitted by a bankruptcy creditor.
What is the reason of bankruptcy?