After the start of the production of the process of financial insolvency, the debtor has certain current payments in bankruptcy. They are presented at the request of creditors for goods, works and services. Moreover, repayment of debts includes not only payment of the funds present in the court decision, but also those that arise during the execution of the court decision.
Fundamentals of Current Payments
In Russian law, current payments in bankruptcy are defined as cash debts and obligatory payments of an enterprise, institution or individual recognized as bankrupt. To regulate their order, a manager is appointed who, after the deadline for submitting a statement of claim to a court or court order, satisfies the requirements of creditors according to the queue.
As a rule, the question of the priority of payments on credit debts and new obligations formed is acute, since after the closure of a private enterprise, new obligations that have not been previously taken into account will inevitably arise.
Creditors Requirements
But there are also possible cases when the claims of creditors on current payments in bankruptcy are not included in the register of claims. Current debts to creditors are not recognized for execution, and current payment creditors are not entities involved in bankruptcy proceedings.
This happens when certain procedures are carried out in the case on recognition of the debtor as financially insolvent. Payments to creditors on claims for current payments in this case are made in the manner prescribed by law. Creditors of this format have the right to appeal the work of the arbitration manager in court if his actions violate their legal rights.
Division of cash and non-cash claims
Current payments in a bankruptcy case are divided into cash and non-cash payments. Their division occurs according to certain characteristics. Thus, property claims of a non-monetary nature are difficult to characterize in a minimum amount that would create a threat of bankruptcy. And monetary requirements in this regard easily determine the required amount of debt, in which the company or individual is declared insolvent.
Creditors with monetary claims are entitled to such a number of votes at the meeting, which is comparable to their requirements in terms of the full amount of debt. And for the right of non-monetary creditors to participate in the meeting, their requirements are whenever possible expressed in monetary terms, and then all obstacles to obtaining the number of votes are removed.
Standard Current Payments in Bankruptcy Procedure
Most often, the following types of debts are issued for payment by the debtor:
- salaries, compensations, weekend money to employees laid off due to reduction or because of liquidation of the institution;
- defrosted tax payments previously suspended due to recognition of bankruptcy;
- fines, penalties and sanctions suspended for the duration of the trial, now requiring payment as current payments in bankruptcy;
- monetary debts for goods, services and work delivered earlier than the bankruptcy date;
- debt payments to creditors for goods, services and work performed on documents that occurred after the debtor was declared insolvent;
- lease payments that will come after the recognition of bankruptcy;
- debts on registration of court papers, costs, legal actions of a notary, lawyer;
- penalties and fines that arise during the sale of property of a debtor under arrest.
The payment of wages is a paramount requirement and is satisfied on time and in the amount of full amounts. Current payments in case of bankruptcy in terms of salary can be reduced by freezing those amounts that exceed the statutory limit of severance pay or payment of work.
Additional categories related to standard requirements
The main requirements include two more subspecies of standard requirements that are not included in the registry of current payments in bankruptcy. They are not entered in the main register, but payment is made in a separate order:
- The requirements for payment of obligations arising from contractual documents, the terms of which could not foresee bankruptcy proceedings, are accepted for execution, but their due date comes after a court decision.
- Payments made directly under contracts with credit providers or government agencies, which are concluded before the court, and the due date comes after the recognition of bankruptcy.
Creditors of this order are not recognized as eligible to vote at creditors' meetings. They do not take part in sales of seized property, are not allowed as participants in the case on recognition of the insolvency of the debtor. Their claims regarding payments are satisfied as they arise.
Declaration of Insolvency
The legislative acts consider all the characteristic details of the case on bankruptcy of an insolvent debtor. The articles of explanatory documents regulate current payments in bankruptcy. The order is determined strictly in accordance with the letter of the law. For the conduct of business on payments to creditors appointed arbitration manager.
The responsibility of the manager largely determines the further course of events for the fulfillment of judicial requirements. And sometimes lenders file counterclaims with the arbitration court for the inaction of the manager, resulting in damage to the payments. If the judicial authorities declare him not guilty, then the claims are sent directly to the administrator himself. In this case, the creditors apply not only for payment of current debts, but also for compensation for damage arising from the fact that current payments are not made in the bankruptcy case.
An example of such non-payments is arrears in the payment of current pension money to employees of retirees or other creditors. Similar proceedings are carried out in the construction sector in the bankruptcy case of the developer, where payment is made to all involved creditors, in order of priority. Therefore, the Commissioner is attentive to the law and does not allow sanctions.
Payments are uneven
The cash content remaining for payments is constantly decreasing, of course, provided that such is available. In line, creditors of the following order are satisfied only after full payment of the primary payments. True, proportional payments are also practiced in respect of all declared debts.
But the last lenders in line most often do not wait for payments. From this it is obvious that the rights of secondary lenders are limited, compared with primary.
The sequence of payments defined in the registry
The first in priority payments is:
- payment of court costs for bankruptcy proceedings;
- payment to direct lenders;
- payments to the bankruptcy trustee or to those who worked in his place.
The second stage provides:
- payments, salaries and severance pay;
- payment for additional litigation workers.
In the third stage, payments are made:
- payment of utilities;
- leasing and rental;
- tax liabilities;
- frozen amounts and allowances for severance pay;
- sanctions, penalties, interest, fines.
The fourth stage exists for the rest of the bankruptcy claims of creditors.
Debt Collection Procedure
How a claim is submitted is determined by the bankruptcy law. Current payments are charged according to the scheme chosen by explanatory documents. First, a written request is submitted to the debtor or to the manager replacing him. This document contains information about when a debt arises - in particular, before a court or after. 
Documents confirming the occurrence of a long obligation after the bankruptcy lawsuit has already been filed are added to this requirement without fail. If the claim is satisfied and the manager’s attitude is loyal, then the need for an additional claim in the arbitration court disappears. The actions of the manager at this moment are to include the debtor in the additional register and submit the account to the bank to write off the required amount in favor of the creditor.
If the claim is not satisfied by the manager and he refuses to pay, then they submit a separate claim to the judicial authorities and receive a positive decision. To do this, they try to confirm with documents that payments are current in nature. The collection of current payments in a bankruptcy case takes place after the court determines which order of fulfillment this requirement relates to. It is paid according to the calendar line.
The court's decision
By a court ruling, the creditor takes a place in the general queue or is placed by the manager on an additional list. The court decision is binding on the arbitration manager. If he ignores it, then after a court decision, forfeits and penalties arise, and the unauthorized inaction of the manager is considered as causing material harm.
If the court has made a decision from which it is not clear which queue the creditor should be assigned to, they will again turn to the indicated authority with a request to make a written decision with detailed instructions.
Payment terms
Payouts monetary obligations are made within the time prescribed by the court decision, and the order is signed. First of all, a competitive event takes place, at a certain time, then, upon receipt of funds from the bankruptcy trustee, payment periods are observed.
The extension or postponement of the time of payments is carried out strictly by agreement with the manager. There is a certain requirement for current payments - the bankruptcy of an enterprise means that laid-off workers are necessarily paid salaries and benefits, although these payments are not current payments. But at the same time premiums above the norm are paid only in the third stage.
Bankruptcy Provisions for Individuals
Documents to the court declaring the debtor bankrupt are filed if the demand for payment of the debt or the total claims of the creditors are more than 500 thousand rubles, and payments are not made for more than 3 months.
The question before a court of declaring a private citizen bankrupt is raised by the citizen himself — one or a group of his creditors — and also by the state body specially authorized for this.
After declaring an individual bankrupt in some cases, a settlement is concluded. If this does not happen, then current payments in case of bankruptcy of an individual occur upon the introduction of rehabilitation procedures.
The first involves restructuring debt obligations. It is conducted to improve solvency. A plan is drawn up, according to which payments are made so that the debtor settles with the creditors, while not getting into a big debt hole.
The second method of rehabilitation is the sale of the seized property of an individual to meet the requirements of creditors, suppliers of goods and services.To perform all the procedures laid down in bankruptcy, a financial manager is appointed, he is appointed by the court as an arbitration manager.
Consequences of declaring an individual bankrupt
A citizen who is declared bankrupt in court for five years does not conclude an agreement under which he acts as a debtor, without indicating the fact of bankruptcy. For three years, a citizen recognized as an insolvent person financially does not work in the management system of a legal entity.
For five years, the bankrupt has not concealed that restructuring is applied to his debt obligations when purchasing goods and real estate on credit.
In some cases, the court decides on a temporary ban on leaving the borders of the state. This restriction is valid until bankruptcy proceedings are terminated or in the case of signing a settlement agreement.
After an individual is declared bankrupt, all of his property is seized and transferred to the bankruptcy estate. Not subject to transfer is property from the sale of which there is no substantial satisfaction of the requirements, as well as things defined in the list of legislative documents.
In conclusion, it should be said that legal measures to declare a company or individual citizen bankrupt are aimed at facilitating payments to the debtor, despite a large number of changes. The law, by and large, is on the side of the debtor, and not the creditor. This is manifested both in guarantees to citizens and in the simplicity of the procedure, which does not require complicated actions or high costs from the debtor.
