Translated from Italian, the word “bankruptcy” means “broken bench”. This is due to the historical traditions of banking in this region. The first financial transactions were carried out in public places on benches, which were then called the bank. A broken bench spoke of the ruin of its owner.
The concept of "bankruptcy"
The term synonymous with bankruptcy is insolvency. It characterizes the situation that can arise both for an individual and a legal entity, when it is not able to pay off debts to the state for the payment of obligatory payments or to borrowers. Such a situation occurs after it is recognized in the prescribed manner by the relevant state bodies.
Bankruptcy also means the process of assessing the financial condition of an entity that has debts. If the debtor starts the procedure, then it is called self-bankruptcy. Many citizens are interested in the question: can bankruptcy proceedings be terminated? The answer can be found later in the article. But first you need to get background information.
Debtor's solvency
Debtor's solvency is restored upon full repayment of his debt to creditors. He can use his own funds to make appropriate payments to persons entered in the state register, or to receive the necessary amount of money for these purposes. All requirements of creditors must be met, and at the same time. Information on the fulfillment of obligations is entered into the state register.
A person who assumes responsibility for the fulfillment of obligations to repay debts applies to the arbitration manager with a similar intention. The latter is obliged to reject similar requests from other persons within a week. If the approved person has not begun to take appropriate actions or has not fully completed them before the end of the month, the decision is canceled.
Lenders are required to accept funds to pay the debt from any person, whether it is the debtor himself, the founders of the company, the owner of the assets or the other party. If the person to whom the debt is owed has not fulfilled its obligations to provide the necessary information and documentation within the established time limits, the funds will be paid temporarily to the notary account.
Debtor's financial recovery
The solvency of the company is one of the main parameters necessary for its successful functioning and clarification of the answer to the question of whether bankruptcy proceedings can be terminated. A monitoring system has been introduced in bankruptcy proceedings. Within ten days from the date of its launch, the bankruptcy trustee holds a meeting of the founders in order to determine measures aimed at correcting the financial situation that has arisen. The list of events is approved on the basis of voting. The founders have the right to provide their funds in the form of:
- Mortgages
- collateral;
- state guarantee;
- bank guarantee;
- sureties;
- other measures permitted by law.
The following measures may be proposed to managers:
- review of the staff and structure of the organization;
- changes in the production process;
- partial sale of property;
- work with receivables, if any;
- issue and sale of additional shares;
- replenishment of capital through additional contributions.
This is not a complete list of measures that the head of the organization can take to restore the solvency of the structure entrusted to him.
External management plan
If the company reached the bankruptcy procedure, it means that its activity was not going smoothly, its management was carried out inefficiently. Accordingly, she will not be able to get out of the debt hole herself. Can a bankruptcy procedure be terminated if the company does not have a competent leader who is able to make payments on debts? Hardly. Therefore, external control is introduced. It is mandatory for entrepreneurial insolvency.
Within a month from the date of appointment, the new manager must develop an external management plan. It is approved by the meeting of creditors. This document should contain a list of measures aimed at restoring the solvency of the debtor. Also, such a plan should include information on the timing and sequence of procedures, the amount and content of expenses.
Satisfying Creditors
The procedure for paying off debts to creditors is regulated by Article 64 of the Tax Code of the Russian Federation. The first to receive their payments are those obligations to which arose before the start of bankruptcy proceedings, they are extraordinary recipients of funds. In addition, the queue of payments for the prevention of technological and environmental disasters, deaths, settlements with the registry holder is not waiting.
The first in line are those who are indebted for causing harm to life and health. They are followed by payments on wages and interest for its delay, severance pay and remuneration for the result of intellectual work. Among them, has its own sequence of payments. The third stage includes bankruptcy creditors and authorized bodies.
First, the main debts and interest are paid on them, and then:
- fines;
- penalties;
- compensation for lost profits.
After that, the settlement of invalid transactions.
Repayment of debt with pledged property
If some transactions were supported by pledged property, then they must be sold. Seventy percent of the sale amount is sent to a special bank account to pay off the debt on this transaction. Twenty percent of these funds are intended for settlement with creditors of the first and second stages. The remainder is for legal costs and managerial fees.
Grounds for terminating office work
The procedure for terminating a bankruptcy case is regulated by Art. 57 FZ 127 & laquo; On insolvency (bankruptcy). " The authorized body for such proceedings is the arbitration court.
Can bankruptcy proceedings be terminated? Yes maybe. But the grounds for ending bankruptcy may be certain aspects of paperwork.
- Restoring the solvency of the debtor through external management or financial recovery.
- Unreasonable claims of the initiator to declare bankrupt a natural or legal person.
- Termination by creditors of claims.
- Fulfillment of obligations to creditors in full.
- Inability to pay the costs associated with legal proceedings, including funds paid to the arbitration manager.
There are other legal grounds for terminating bankruptcy proceedings. To find out, you need to familiarize yourself with the tax laws.
Petition
With the help of the petition, you can ask for the termination of the bankruptcy procedure. This document can be sent to the arbitration court by any interested person. If it is an arbitration manager, then it should contain links to:
- report;
- justified and documented reasons for the termination of office work.
Lenders may also request the closure of the case based on the consideration of the report of the arbitration manager if they find sufficient arguments in it. This document, as well as the register of creditors, the minutes of the meeting of creditors and other documentary information may be attached by the person applying to the court to the application.
Application form
Bankruptcy petition persons and jur. persons must contain the following information:
- name of the arbitration court where the application is directed;
- data of the applicant, as well as the debtor, creditors;
- grounds for appeal;
- details of office work;
- references to regulatory legal acts;
- case description;
- applicant requirements;
- date of writing the application, signature of the person submitting it;
- list of applications.
Specialist advice
Bankruptcy of individuals and legal entities has long been something out of the ordinary. Sometimes this is the only possible way out of this situation. Most often, such cases are conducted by lawyers specializing in this area. In free access on the Internet you can see a large number of comments and answers to questions on bankruptcy of individuals. persons and jur. persons.
So, for example, one of the specialists explains the legitimacy of the creditor submitting a repeated application to the debtor. This is possible if the organization has not been liquidated and its office work has been terminated. If the claims of the creditors are not satisfied, any of them may ask to declare the debtor bankrupt.
If the case for declaring the enterprise bankrupt is terminated, then the entity restores its rights to the property. Therefore, they are actively fighting for such a right. Everything related to insolvency is described in the same Federal Law No. 127-FZ.