Three years ago, not only legal entities, but also individuals (in the amount of outstanding obligations of more than half a million rubles) got the opportunity to nullify their financial obligations in our country. More than a thousand people have already taken the opportunity to start their financial life anew, but for those who just want to do this, this article will be useful. After all, the bankruptcy procedure for citizens promises not only the prospect of getting rid of past accumulated debts, but also the opportunity to lose the remaining property and find problems with finding a job or starting your own business.
Citizens who have a critical amount of debt and want to go bankrupt should know that recognition of insolvency implies several scenarios: the sale of property at auction, the restructuring of obligations and the conclusion of an agreement. The procedure for concluding an agreement is possible at any stage of the bankruptcy procedure. A mutually beneficial agreement of the parties, applied in the process of bankruptcy of citizens and aimed at satisfying the interests of both parties, is called a settlement. This is a good option for debtors who have property for sale, in addition to un mortgaged single housing. The signing of the agreement terminates the bankruptcy process by peaceful resolution of all issues on general agreements.
Restructuring, or revision of obligations
When restructuring debts, a number of stringent requirements are put forward to the debtor. The first - debt restructuring should last no more than three years, and the second - the debtor's income should not be lower than the subsistence level. An amicable settlement in a bankruptcy case may be concluded without the debtor fulfilling these requirements. The term of the agreement is limited only by the decision of the debtor and creditors. The income of the debtor can be any.
Possible transaction periods
An amicable settlement in a bankruptcy case may be initiated at any time. What are the terms of the deal?
Conciliation Procedure Terms
The signing of a settlement agreement in a bankruptcy case provides for the following conditions:
- It extends to the obligations declared in the register during the meeting of creditors.
- It does not provide for unilateral refusal to perform one of the parties.
- Signed on paper.
- Agreed by all parties.
- Does not violate the law, does not create the advantages of some competitive creditors in relation to others.
- It provides equal opportunities for fair repayment of obligations of all creditors.
- Describes the interests of a third party, if any.
- The terms of a settlement in a bankruptcy case are limited only by the will of the creditors.
Features of a truce at the stages of bankruptcy
With the initiative to resolve issues with creditors by the world, the debtor can go out independently at the stage of financial recovery. In this case, no additional agreement is required with someone on the procedure for concluding a transaction between the borrower and the collectors.
A global deal can also be offered by a bankruptcy trustee. He cannot participate in the signing of the contract and the transaction between the parties. He can only advise, invite the parties, the debtor and the creditors to reach a mutually beneficial agreement and fix it in writing on paper.
A financial dispute between the parties to a transaction is deemed resolved if all creditors with collateral obligations voted for it and the total financial claims of those who voted in favor exceed half of the amount of debt owed. The settlement agreement is signed by the chairman of the board of creditors. The document is also signed by the citizen or the head of the debtor and the manager.
Parties to the peace treaty
The approval of a settlement agreement in a bankruptcy case is mandatory for all parties to the transaction:
- debtor citizen (its leader);
- guarantors of the debtor, assuming their rights and obligations and guaranteeing the fulfillment of all obligations;
- creditors;
- official authorities;
- third parties (representatives).
Essence of the agreement
The draft bankruptcy settlement agreement should contain the following information:
- The procedure and deadlines for fulfilling creditors' claims in any form of fulfillment of obligations (cash, provision of compensation, partial or full write-off of debt). All requirements that are not included in the schedule are subject to full write-off. Lenders agree to a partial payment of obligations so as not to be left with nothing after a citizen is declared insolvent, having no funds and property to fulfill financial obligations.
- Interest rate on the amount of cash payments.
- The amount of mandatory payments for approved obligations.
- The term for calculating payments and the grounds for exemption from payment.
Settlement Benefits
The positive aspects of a global resolution of a financial dispute in a bankruptcy case are:
- the possibility of reaching agreement by all parties to the transaction on favorable terms;
- saving of forces and time on all parties to a transaction for bankruptcy proceedings;
- saving on legal and other expenses by all parties to the transaction (debtor and creditors);
- the ability of the debtor to avoid the consequences of being declared bankrupt (obstacles in the future in obtaining loans and credits, occupying managerial positions, organizing his own business);
- the opportunity for the debtor to keep property pledged by creditors, including the only housing that is to be sold at auction, if it is pledged.
Agreement Approval Stages
An application for a settlement in the bankruptcy case is filed with the arbitration court by the debtor or bankruptcy trustee. The following required documents are attached to it:
- The draft settlement agreement.
- Minutes of the meeting of creditors.
- Register of bankruptcy creditors, including those that have not submitted their claims to a citizen, with their contact details (phone number and address).
- List of citizen obligations made to him by creditors.
- Supporting documents on the repayment of obligations of the first and second stage.
- Objections of creditors who opposed the conclusion of a world deal or did not vote on this issue.
The terms of a settlement in a bankruptcy case regarding filing an application are as follows: not earlier than five days, not later than ten days from the date of signing the contract.
The arbitral tribunal may or may not approve a settlement. Repayment of all obligations of the first and second stage is a prerequisite for the approval of a peace agreement.
Some of the lenders may oppose the signing of the document. In this case, the court can still approve the agreement if the creditors voted for it, the amount of obligations to which exceeds half of the debts (and this includes all collateral creditors).
From the day the agreement is approved by the arbitral tribunal, it enters into legal force. All participants in the transaction must execute it. A global deal has the following consequences:
- cancellation of the restructuring schedule, if any;
- termination of the ban on satisfaction of claims made by creditors;
- the beginning of repayment by the debtor of obligations;
- free disposal of the debtor with all his property;
- exemption of a citizen from bankruptcy status;
- exemption of a citizen from paying remuneration to the bankruptcy trustee;
- termination of activity of the approved manager.
One copy of the settlement agreement is attached by the arbitral tribunal to the case file.
If the court has not satisfied the request for concluding an agreement, then it shall be considered that it has not been concluded.
A peace agreement may be re-signed if:
- circumstances preventing the approval of the agreement were not actually reported to the applicant at the time of signing the agreement;
- the applicant did not participate in the signing of the world document, but the agreement violates his legal rights, does not take into account interests.
When peace is impossible
The arbitral tribunal may refuse to conclude a settlement agreement in an insolvency proceeding in the following cases:
- the rights of applicants of the first and second stage are not respected;
- violated the rules for concluding an agreement;
- the mandatory written form of the transaction has been violated;
- the rights of third parties are not taken into account;
- authority exceeded by the representative of the claimant.
Termination of the agreements of the parties
A world transaction may be challenged in an arbitration court if the following circumstances occur:
- bankruptcy creditors with at least one-fourth of the claims claimed at the date of signing the settlement agreement filed an application with the arbitration court;
- the debtor does not fulfill the agreement of the settlement agreement concluded with the claimants.
Only applicants whose collection rights are included in the register at the date of conclusion of the settlement agreement can challenge the agreement. Other creditors do not have the right to appeal the court decision on the approval of the world, since the violation of their rights in this case does not occur.
The bankruptcy case begins again if the settlement is annulled. The process of recognition of insolvency is resumed, the procedure is introduced, which was used in the bankruptcy case when a settlement was concluded. An exception is the case if other procedures have been introduced with respect to a citizen that are used in a new case to recognize the impossibility of a debtor to fulfill financial obligations.
Breach of contract
An amicable settlement in a bankruptcy case is binding. In violation of the claimant have a legal basis:
- file a lawsuit;
- request a writ of execution to recover outstanding claims;
- present a sheet to the bailiff service;
- in the process of enforcement proceedings, initiate the arrest of all known bank accounts, debtor cards, the arrest of his movable and immovable property;
- through bailiffs, prohibit the departure of a debtor citizen outside the country (with a debt of more than ten thousand rubles);
- impose a penalty on the income of a citizen in the amount of fifty percent of the total amount of income.
The conclusion of an amicable agreement in insolvency, bankruptcy cases is one of the common procedures that is beneficial to all parties. The advantages of the procedure, the schedule of its implementation are described above in the text.