Company bankruptcy - Benefits

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?

  • Debt in the amount of at least three hundred thousand rubles (excluding penalties and fines);
  • delay in payment of debt for at least three months;
  • lack of ability to pay off debt.

  • 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?

  • On the side of the debtor - restoration of solvency, possible reduction in debt, protection from creditors, satisfaction of creditors' claims through the sale of property.
  • On the side of the creditor - repayment of debt; protection of their interests, including through a ban on the alienation of property of the debtor.
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