Bankruptcy proceedings are represented by a certain stage in the bankruptcy procedure of a company. It involves the sale of all assets owned by the enterprise. The funds received from this process are used to pay off debts held by the organization. The process is carried out by a bankruptcy trustee specially appointed by the court. He is vested with certain powers, duties and responsibilities. He must be represented by an experienced and responsible specialist. Certainly, remuneration is assigned to the bankruptcy trustee for the work performed. The amount of payment may be determined in the form of a solid cash amount and a certain percentage of the funds received by creditors as a result of the sale of property.
Manager concept
This specialist is appointed by the arbitral tribunal where the bankruptcy proceedings of a particular company take place. He must perform many actions, which include studying all the documentation of the company, valuing property, selling objects at tenders, collecting funds from buyers, distributing money among all creditors in the previously created registry.
For all the actions performed, a remuneration is assigned to the bankruptcy trustee, which is agreed in advance. It can vary significantly depending on the duration of the bankruptcy proceedings, the number of assets sold or other factors.
The main functions of a specialist include:
- protection of all assets of a bankrupt company so that property is not lost as a result of various fraudulent actions by former owners of the enterprise;
- representation of interests of creditors and court;
- sale of property through tendering and the provision of values to the auction participant who will offer the highest price;
- repayment of company debts due to funds received at the auction;
- maintaining a register of creditors;
- attending a meeting of creditors and taking into account decisions made at these meetings.
The activities of this specialist are fully regulated by creditors, so they have the opportunity, with the help of an appropriate decision, to replace the manager if they believe that he is violating the law or is poorly managing his duties.
What are the requirements for a specialist?
The court may appoint a manager only if certain requirements are met. These requirements include:
- Russian citizenship;
- higher education;
- work experience as an assistant to a bankruptcy trustee or manager;
- passing a theoretical exam for knowledge of Russian legislation;
- no criminal record or fines for administrative misconduct.
Only based on the results of the work performed, a remuneration is assigned to the bankruptcy trustee in case of bankruptcy of the organization. It is paid before satisfying the claims of creditors included in the register of claims, therefore it is subject to collection along with other debts of the enterprise.
What is the payment for?
Remuneration to a specialist is assigned for his many services. It is represented by the salary of the manager. His responsibilities include the implementation of various actions, among which the preservation and sale of property is considered the most significant.
If the specialist reveals that any unlawful actions are being taken by the debtor, he must report this fact to the court and creditors.If necessary, he can attract additional managers, for example, when the company has too much property, so one specialist will not be able to cope with the task for a specified period of time. In this case, payments are made to each specialist.
What happens at the start of bankruptcy proceedings?
This stage is considered the last in the entire bankruptcy process. When it is appointed by the court, it is established that the company will not be able to cope with debts and restore solvency, therefore it is required to sell its property to pay off debts. Upon appointment of the bankruptcy trustee, the following actions are performed:
- accrual of various fines or forfeits is terminated;
- obligations to all creditors included in the register are fulfilled, for which the company’s cash is used, and tenders are held where its property is sold;
- enforcement proceedings are stopped, therefore, bailiffs cease to influence the organization in different ways to pay off its debts;
- It is not allowed to conclude any transactions in relation to the assets of the enterprise, as they must be preserved until they are sold by the manager.
The payment of remuneration to the bankruptcy trustee is made simultaneously with the repayment of the company's debts. In this case, the specialist acts as one of the lenders.
How is the manager appointed?
The process of its appointment has some features that must be observed by all participants in the procedure. It is the arbitration court that appoints the manager in the process of conducting bankruptcy proceedings.
As soon as a specific specialist is determined, responsibility is immediately imposed on him for taking further actions to pay off the company's debts. The procedure for appointing a manager is divided into several stages:
- initially, the company is officially given bankruptcy status, for which a court session is held, where the financial condition of the enterprise is studied;
- the court reveals whether the debtor and creditors have the opportunity to provide their own manager, and the parties can offer only one candidate or completely refrain from the proposal;
- existing candidates are carefully checked, as they must meet numerous complex requirements;
- a person who inspires confidence in the court is appointed by the bankruptcy trustee.
Most often, creditors and the company itself cannot offer any person as a manager. In this case, the court has to contact the organization of the arbitration managers.
What is the reward?
The manager is endowed with numerous obligations and responsibilities. He must perform many different significant actions, therefore, payment of remuneration to the bankruptcy trustee, represented by the payment of his services, is certainly required.
This issue is addressed in Art. 20 Federal Law “On Insolvency”. The main features of the appointment of remuneration include:
- if during the bankruptcy proceedings the manager incurred various expenses, then they are necessarily reimbursed at the expense of the bankrupt;
- the remuneration of the bankruptcy trustee is directly collected from the bankrupt company, therefore, payments by the state are not assigned to the specialist;
- a standard amount payable to the manager monthly is paid as standard.
There is no exact information in the law about what the size of this payment should be. But on average, the amount of remuneration of the bankruptcy trustee is 30 thousand rubles. per month. If for some reason a specialist is replaced, then actually worked days are taken into account.
Are interest accrued?
Additionally, lenders can provide the manager with interest on the funds received by them.This serves as an incentive for the specialist to pay off as many debts as possible by selling the property.
The increase in the remuneration of the bankruptcy trustee is carried out only after the relevant decision is made at the meeting of creditors. Usually, interest is set for this, depending on what proportion of the debts will be repaid by the specialist.
In the form of interest, the remuneration of the bankruptcy trustee is calculated according to the following principles:
- if less than 25% of the identified and registered claims are complied with, then only 3% of the payment amount is transferred;
- if 25% of the requirements are satisfied, then 4.5% is assigned;
- if more than 50% of the debts are paid off, then the manager receives 6% of the amount paid;
- if it exceeds the share of repaid debt 70% of the total number of debts, then 7% of the money paid is assigned.
Therefore, the specialist should really strive to pay off all debts held by the bankrupt company. The calculation of the remuneration of the bankruptcy trustee in the form of interest is based on the information contained in the financial statements of the enterprise. It contains information about all assets and their condition.
Are expenses reimbursed?
During the bankruptcy proceedings, the manager often faces the need to bear certain own expenses. They may be related to organizing tenders or identifying all assets owned by a company. Additionally, other specialists may be involved in the manager for a particular job. Most often, the services of operators or appraisers, auditors or professional accountants are required. Under such conditions, not only the remuneration to the bankruptcy trustee is appointed, but also the funds necessary to cover such expenses are paid.
Even if the manager initially used his own funds for these purposes, he must necessarily receive money from the debtor to cover costs.
When are funds paid?
In the form of a fixed amount, funds are transferred monthly during the bankruptcy proceedings. In the form of interest, the remuneration of the bankruptcy trustee is transferred 10 days after, using official documents, it is confirmed that the bankruptcy case has been completed.
The more actions the specialist takes, the more debts are paid and the less expenses are incurred, the higher the payout will be.
Who pays these funds?
Compensation is necessarily paid by the direct debtor company. Payments by the state or from other sources are not listed.
There are frequent situations when a bankrupt enterprise has no funds or property, therefore it is impossible to receive money from the enterprise in different ways. In these cases, money is charged from the immediate supervisor or representative body.
How is reflected in accounting?
Since the funds are transferred by the direct company, until it is closed due to insolvency, the company's employees must comply with the basic rules for the reflection of various transactions in the financial statements.
It is applied when transferring remuneration to the bankruptcy trustee posting: D 25 К76 - accrual of payment to the trustee. To do this, use account 76, intended for settlements with other creditors or debtors. Since the manager’s functions are connected with the management of the enterprise at the bankruptcy stage, the expenses incurred by the company for ordinary activities are written off, therefore account 26 is applied.
Are taxes paid?
The company is not a tax agent for a specialist, so he must take care of the transfer of taxes and insurance contributions. Paid for remuneration to the bankruptcy trustee of personal income tax in the amount of 13% of the amount received.In addition, compulsory insurance premiums are calculated and listed.
A bankrupt company does not have to worry about transferring taxes or insurance premiums for a manager. No premiums for insurance against occupational diseases or accidents are accrued. This is due to the fact that such contributions are paid exclusively for employees of the enterprise, working on the basis of the provisions of the employment contract.
In what order are funds transferred?
If for any reason the specialist is removed from the case, then the funds are paid to him within 10 days after the removal. For remuneration, you should contact the arbitration court directly.
The manager has certain privileges, so he can count on payments to all other creditors.
What is the minimum payout?
The guarantee of receipt of funds by a specialist is the successful completion of his work. In this case, the standard amount of remuneration to the bankruptcy trustee equal to 30 thousand rubles is assigned. per month. Additionally, upon successful performance of duties, creditors may decide on the allocation of interest on the amounts received.
If the manager cannot properly implement the stage of bankruptcy proceedings, then he can count on the minimum amount equal to 25 thousand rubles, and often this amount is not enough even to cover the costs incurred.
Features of payment of funds
The judicial commission may increase the remuneration of the bankruptcy trustee of the absent debtor. This applies to situations when a really difficult job is performed by a specialist or the result of his activity exceeded the expectations of the court and creditors.
If it turns out that the manager conducted the affairs inappropriately, and he also did not manage well with his duties, then by court decision the amount of remuneration may be reduced. The amount of such reduction depends on the actions or inaction of the manager. Often, illegal operations performed by a specialist are detected at all, which lead to losses. Under such conditions, all expenses of the manager are not reimbursed. Therefore, the amount of remuneration depends on the result of the work of a specialist.
Conclusion
Bankruptcy trustee has many responsibilities, and its main function is the sale of property of the debtor company. He is responsible for all decisions made. Appointed only by the arbitral tribunal, and a specific candidacy may be proposed by creditors or the bankrupt company itself.
For the work done, a reward is assigned to the specialist, which is presented in a solid amount. For good process results, payment as a percentage of debt repaid may increase. If unlawful actions committed by the manager are identified, the amount of payment may be reduced.