What is bankruptcy - types and stages of bankruptcy proceedings + signs of insolvency

Applying to such a firm will reduce the cost of the process itself and achieve the court's best decision.

Professionals provide the debtor with maximum assistance in processing documents and in reaching a compromise with creditors, etc.. d.

Bankruptcy support services

In the Russian Federation on support of insolvency cases (bankruptcy) several organizations specialize.

Consider some of them:

1. Stop Credit Company

The specialization of this company is working with clients, having disputes with various credit institutions. Here experts will help to solve problems with penalties, debts and arrears.

2. National Bankruptcy Center

The activities of this company extend to Moscow and the region, as well as in many other regions of the Russian Federation. In this company there is an opportunity for online consultation with a specialist on insolvency proceedings.

3. Advocacy

The company is headquartered in St. Petersburg, but the firm has a well-developed branch network in many cities. Here, lawyers provide quality advice on all issues of bankruptcy and, if necessary, provide reliable legal support at all stages of bankruptcy proceedings.

4. All-Russian Bankruptcy Service

This company also has branches in many regions of the Russian Federation. She also consults clients remotely.

5. CVT Law Firm

ITC Legal Supermarket provides legal support to citizens in any legal and financial matters.

The prices of these companies vary depending on the complexity of the case. Support at all stages of the bankruptcy procedure will cost the law firm from 100 000 rubles, and individuals close 20 — 100 thousand. rub.

Consequences of intentional and fictitious bankruptcy

6. Intentional and fictitious bankruptcy - signs and consequences

It is called fictitious bankruptcy first false declaration of insolvency of a company or individual, if it has caused great damage.

Importantly! Deliberate bankruptcy is an administratively or criminally punishable act.

Currently, fictitious bankruptcy is a fairly common phenomenon. This procedure gives the impression of insolvency.

The idea of ​​intentional bankruptcy is usually put forward by the founder or head of the company.

Objectives, prosecuted in organizing the bankruptcy process, may be different:

• Misappropriation of company assets;
• Deception of company employees;
• Receiving a deferral or deviation from the payment of existing debt;
• Receiving discounts on debt payment, etc..

Upon closing the bankruptcy case, such a company declares itself insolvent and creates a residual company, where inexpensive unnecessary property remains, unskilled personnel and debts.

6.1. Characteristic signs of intentional bankruptcy

Any kind of insolvency has the following characteristics:

• The person has more than one debt 100 000 rub.
• A person cannot repay his existing debt;
• The bankruptcy of the debtor is officially recognized by the court;

As for intentional bankruptcy, then its main specific features are:

• The debtor hid the property, as well as information about its location, sold property;
• All the required responsibilities were not met when filing for bankruptcy;
• Failure of the debtor to comply with the rules of bankruptcy;
• Accounting and accounting documents were forged, and are not originals.

6.2. Detection of the fact of intentional bankruptcy

If the company was intentional bankruptcy was initiated, this can be detected as a result of inventory and financial analysis, conducted by the arbitral trustee.

The following steps are required to verify the fictitiousness of bankruptcy:

• The solvency of the company is analyzed, financial analysis is carried out;
• An asset inventory is being made, which are on the balance of the enterprise;
• The legality of the company's agreements is being verified, which could contribute to the deterioration of the financial position of the firm and lead to increased insolvency. At this stage, the agreements for the whole period are checked.

Documents, being tested, to detect intentional bankruptcy:

• Founding documents;
• Available data on the debts of the enterprise;
• Accounting and accounting documents;
• Documents on available court cases;
• Audit and audit reports.

If during the documentary inspection illegal agreements were revealed, it can be assumed, that such agreements are one of the reasons for the deterioration of the solvency of the legal entity.

An example of an illegal agreement may be the purchase and sale of movable or immovable property on unfavorable terms, etc.

in addition, there are cases, when intentional bankruptcy is expressed in the failure of the company's management to fulfill its direct responsibilities.

6.3. Effects, which entails intentional bankruptcy

If during the inspection it was proved, that the bankruptcy of the company is initiated intentionally, then to the citizen, administrative or criminal penalties are imposed on those guilty of bankruptcy.

The Criminal Code provides for administrative penalties for intentional bankruptcy.

Responsibility for intentional initiation of bankruptcy proceedings bears the head of the company or a member of the company or an individual entrepreneur.

That is a person, whose actions led to the insolvency of the company, as well as the inaction of which led to the inability to satisfy creditors' claims.

Criminal liability is provided in that case, if the damage was particularly great. The threshold value in this case is the amount - 1 500 000 rub.

In the case of, if the amount of damage is more than the specified value, then such responsibility before the law is imposed on the person:

• Administrative fine, which is 200 000 – 500 000 rub. or in the amount of personal income for 1-3 years;
• Referral of a person to perform forced labor during 5 years;
• Imprisonment for 6 years, an administrative fine is additionally assigned 200 000 rub. or in the amount of personal income for 18 months;

If the amount of losses amounted to Less 1 500 000 rub., then the responsibility for such an act is assigned differently:

• Administrative fine for an individual 1 000 – 3 000 rub.;
• An administrative fine is imposed on the head or manager of the company 5 000 – 10 000 крб. and the inability to hold leadership positions during 1-3 years.

6.4. The difference between fictitious bankruptcy and intentional

so, consider in more detail how fictitious and intentional insolvency differ from each other.

At first it may seem, that the concepts of fictitious and intentional bankruptcy mean the same thing. But in fact there are a number of obvious differences between them.

Bankruptcy is intentional, which was the result of actions by managers, which caused the firm's inability to repay existing debt to creditors. Usually, such bankruptcy is carried out for the purpose of misappropriation of assets by a person, listed on the balance sheet of the enterprise.

As for the fictitious bankruptcy, then the statement about him in court is initially erroneous. The main purpose of these actions is to obtain deferred payment of debts or evasion of debt.

With great damage to the citizen, who has committed illegal acts is punishable by such punishment:

• Assignment of an administrative fine 100 000 – 300 000 rub. or payment of the citizen's income for the last two years;
• Referrals for forced labor, the term of which will be 5 years;
• Deprivation of liberty of a citizen for 1 — 5 years;
• Deprivation of liberty of a citizen for 1 — 6 years and payment of an additional fine, size up to 80 000 rub.

7. Bankruptcy Frequently Asked Questions

In this section we will consider the most common questions, regarding the bankruptcy procedure and we will give detailed answers to them.

Question 1. What is a simplified bankruptcy procedure and how it is carried out?

Simplified bankruptcy procedure is called a procedure, in which the company is liquidated in the shortest possible time and with minimal monetary losses for the head of the enterprise.

This bankruptcy scheme applies, usually, at small enterprises, who have few assets, consisting of property and cash. Accelerated bankruptcy is recognized for 5-7 months.

Attempts at reorganization and external management are not envisaged in this procedure. Immediately after the financial analysis, accounting and accounting documents of the company, the court decides to liquidate the company and the stage of bankruptcy proceedings begins.

Question 2. Which is the only federal bankruptcy registry?

The single federal bankruptcy registry is a collection of information, relating to bankruptcy cases. The register contains information on the progress of bankruptcy proceedings in.

You can view this register on the official website of the single register on the Internet. Access to it is open to anyone.

(Official site of the Unified Federal Register of Bankruptcy Information - bankrot.fedresurs.ru)

To see more information, you need to register on the official website. This is where all the information about the company is contained, who have been declared bankrupt or in respect of whom bankruptcy proceedings have been instituted. All data on the site is regularly updated.

Prior to the existence of the single register, it was much more difficult to monitor the progress of insolvency cases.

In a special section of the site you can find information about the auction. There are dates, types and subjects of tenders. You can also read the list of items, which are put up for auction (apartments, equipment, non-residential premises, transport, etc.) which have been seized by the arbitral tribunal.

Question 3. When the bankruptcy of a citizen is his right, and when duty?

Many citizens do not always want to file for bankruptcy. But in some cases, starting a lawsuit helps to gain time and pay off debts with minimal losses.

A citizen can apply to the court to initiate bankruptcy proceedings, if he assumes, that he would soon go bankrupt, if there are circumstances, which indicate, to fulfill the obligation to pay debts and mandatory payments simply not possible.

In this case, the citizen must be insolvent, and must not own property, after the sale of which he will be able to painlessly close all his debts.

An individual is obliged to write a statement to the court to initiate bankruptcy proceedings against him then, when the payment of existing debt to one creditor entails the inability to pay mandatory payments and debts to other creditors in a timely manner.

The amount of liabilities must be at least 500 000 rub. In this case, the individual submits an application to the courts during 30 days from the moment, when he learned or should have learned of his inability to repay debts to creditors.

Question 4. What restrictions on the rights of a citizen may be imposed by a court upon completion of bankruptcy proceedings against him?

Upon completion of the bankruptcy proceedings, the arbitral tribunal may be a ban on the departure of a citizen has been established, declared bankrupt abroad. This prohibition will be valid until the court decides to end the bankruptcy proceedings or until the signing of an amicable agreement between the debtor and creditors.

From the moment the decision to declare a person bankrupt and from the moment the property is sold is made, standing on the balance sheet of the debtor, all rights to this property, including the right to dispose of it, carried out exclusively by the financial manager.

After, as the bankruptcy procedure was closed the bankrupt person cannot conclude credit agreements and loan agreements, without specifying the fact of bankruptcy.

in addition, during the same period of time, the citizen cannot re-initiate the bankruptcy procedure.

Question 5. An apartment may be sold in bankruptcy?

The debtor's apartment can be sold in that case, if it is pledged (example, mortgage lending).

Question 6. What are the consequences for a citizen of repeated bankruptcy?

If the citizen was declared bankrupt again, then for three years he has no right to be a manager of companies.

Question 7. If a citizen is declared bankrupt, it is possible to repay at the expense of a third party his debt to the budget in the form of taxes and fees?

The Tax Code of the Russian Federation approved the norm, that every taxpayer must repay his debts to the state for taxes and fees.

However, somewhat different rules are approved by the Federal Law "On Insolvency (bankruptcy)». It provides in law that a third party can pay all the debtor's existing obligations. To do so, a third party must file a statement with the court.

Question 8. It is possible to use reorganization / external management in case of insolvency of an individual entrepreneur?

No, these procedures apply only to legal entities.

Question 9. If the debtor is declared bankrupt, the order in which creditors' claims will be met?

The legislation provides for the following priority of satisfaction of the requirements declared by creditors:

• Legal costs, remuneration of the arbitral trustee;
• Arrears, existing before the citizens, whose health and life have been harmed;
• Arrears, existing before employees on the payment of benefits and wages;
• Other debt.

Question 10. The bankruptcy process is the same for all companies?

As discussed above, the insolvency procedure involves passing 5 stages. But the legislation does not provide for the need for the company to go through all these stages.

Of great importance in this matter is the organizational and legal form of the debtor company. According to this criterion, organizations can be: simple, insurance, credit, banking, city-forming and agricultural.

Everyone is required 5 (five) The stages of bankruptcy should be simple, city-forming and agricultural enterprises.

For the other three forms of organization there is a possibility of a slightly different order of bankruptcy proceedings:

• If, when creditors are bankrupt, only bankruptcy proceedings are required;
• The peculiarity of agricultural enterprises is that, that their activities are seasonal. The result of their activities is largely determined by weather conditions and seasonality. Therefore, the arbitral tribunal may assign them a stage of supervision, external management and reorganization at its discretion. As for practical activities, then the implementation of the appointment of the court is carried out during the season, suitable for the main activity of the enterprise.
• In insurance companies, the stages of enterprise recovery and external management are excluded from the bankruptcy process.

Question 11. Which is a meeting of creditors? What issues are addressed at this meeting?

Individuals are recognized as creditors, who in relation to a legal or natural person have the right to claim monetary or other obligations. Competitive creditors may take part in the creditors' meeting, as well as authorized bodies.

The claims of all these entities on the date of the meeting must be reflected in the register of claims.

Creditors' meetings are formed in any competitive process, except in cases, when the company has debts to only one creditor.

The organization and holding of the meeting is carried out by the arbitration trustee 2 (two) weeks. This condition must be strictly adhered to by the manager otherwise he may be prosecuted. Notification of participants is also the prerogative of its activities.

The law does not provide for any liability for failure to comply with this obligation, but if the lender proves it, that he did not appear at the meeting because he did not receive a notification, then he has the right to raise the question of the incompetence of the meeting. In this case, it is a failure of the manager to perform his direct duties.

Lenders, suffered losses as a result of convening the meeting, it is allowed to demand repayment from the manager. The debtor will also incur losses, because he needs funds to convene and hold a second meeting.

The meeting should consider the following issues:

• Determining the start or end time of the reorganization and external management procedure or the extension of these procedures, which were previously agreed;
• The enterprise rehabilitation plan is approved;
• The schedule of repayment of the existing debt is approved;
• Selection and approval of necessary requirements, which will be nominated for management at all stages of the procedure;
• Definition of the registrar;
• Signing an amicable agreement;
• A decision is made, that it is time to put the debtor's property up for sale to cover the proceeds from the sale of existing debt claims;
• An authorized representative is elected by voting;
• The activities of the creditors' committee are organized.

Question 12. What are the differences between arbitration, competitive and external managers?

The court first appoints an arbitration trustee, which solves all the main points, related to the organization and implementation of the bankruptcy process.

It must be a professional in his field, and it should be part of the organization of arbitration trustees.

In fact, the concept of "arbitral trustee»Is common, and at different stages of the bankruptcy procedure it has its own special name, depending on the functions, which he performs.

The observation procedure is carried out by the temporary manager. It is responsible for resolving such issues: conducting financial analysis of the debtor, participation in the court's consideration of claims for debt t. d.

During the reorganization procedure, an administrative manager is appointed. It is his responsibility to monitor compliance with the established debt repayment schedule.

The external management procedure is supervised by an external manager. He is obliged to take measures to restore the company's solvency.

At the stage of bankruptcy proceedings, the bankruptcy trustee is involved in the case, who monitors the sale of the debtor's property and from the money received repays the debt to creditors in the order of approved priority.

Arbitration trustee does not participate only in the last stage of the bankruptcy process - the signing of an amicable agreement.

Question 13. Is there a need for special preparation of the organization for bankruptcy?

If the head of the enterprise understands, that bankruptcy proceedings could not be avoided, it is in his best interest to prepare the company for bankruptcy.

Properly prepared for bankruptcy will contribute to the successful completion of the bankruptcy case.

Conducting special training helps reduce risks, arising from the insolvency proceedings, examples of which are risks:

• detect fictitious or intentional bankruptcy;
• the risk of involvement of the tax authorities of the founder of the company or person, who holds a managerial position to subsidiary responsibility;
• change of the bankruptcy trustee in the course of the case, etc..

Preparing for bankruptcy in advance, the company insures against these risks, allows you to objectively assess the current situation in the company before the bankruptcy proceedings.

Actions, which will help prepare for the initiation of bankruptcy proceedings and reduce risks, described above:

• Analysis of the current structure of liabilities, which will be the basis of the structure of debt to creditors;
• Carrying out the analysis of the formed structure of assets, which will assess the amount of property, which will eventually be put up for sale at a free auction;
• Analysis of transactions, which were concluded by the head of the enterprise for the last three years, which will reveal the existence of illegal agreements, which means reducing the risk of intentional bankruptcy;
• Analysis of the possibility of declaring bankruptcy fictitious or intentional, as well as the possibility of bringing management to subsidiary responsibility.

8. Conclusion + video on the topic

So, bankruptcy proceedings (insolvency) is a complex process, which consists of several stages. It can be simplified or complete.

At the time of the court's case of insolvency legal or individual is released from the payment of accounts payable, as well as interest, fines and penalties.

However, recognition of the subject as insolvent by the arbitral tribunal, does not release him from full payment of the debt. The procedure only allows the debtor to pay his obligations to creditors in a slightly different way.

Bankruptcy can be fictitious, that is, planned, for the purpose of misappropriation of assets or obtaining a deferral of payment of debts. In this case, it is a crime.

The law provides for this option administrative and criminal liability. To reduce risks, arising from the initiation of bankruptcy proceedings, it is recommended to conduct preliminary training, which will help to fully assess the situation.

Experts recommend legal entities and individuals to initiate bankruptcy proceedings only as a last resort, when solving financial issues in another way is simply not possible.

If you have questions on the topic, then we recommend watching a video from the radio "Lighthouse" about the bankruptcy of individuals: