Bankruptcy of a legal entity in 2021: step-by-step instructions

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The process of declaring a legal entity insolvent (bankrupt) takes place according to a certain algorithm; it involves a wide range of persons, including: the debtor himself, creditors, the court, the insolvency practitioner and other participants in the case. For each party, the bankruptcy procedure presupposes the existence of an established procedure, strictly regulated by law. In this material we will tell you how bankruptcy of a legal entity is carried out in accordance with the law in 2021. Step-by-step instructions - a list of steps, the implementation of which entails the recognition of a financially insolvent organization as such officially, through the court. We will also consider in detail all the stages (procedures) that are provided for in bankruptcy.

Signs of bankruptcy of a legal entity

The status is not given to all companies; it is intended only for those who really cannot cope with debt obligations. These can be any problem debts: to banks, counterparties, government agencies.

The law says that a legal entity can become bankrupt if it does not fulfill the demands of creditors, cannot pay wages to employees, or make mandatory payments. The lifespan of problem obligations is at least 3 months. The total amount of debt must exceed 300,000 rubles.

Who can initiate bankruptcy of an LLC:

1. The company itself.
2. A creditor to whom a company owes a debt.
3. An employee to whom the company has a debt.
4. Competition creditor.
5. Authorized bodies, for example, the Federal Tax Service.

Regardless of who the initiator is, the bankruptcy procedure for a legal entity will be identical. Cases are considered by the arbitration court.

In addition, Article 8 of Federal Law No. 127 states that a debtor company has the right to file a bankruptcy petition with the Arbitration Court in advance, when a difficult financial situation is only in the future. But provided that it is clearly inevitable: for example, the company does not and will not have the resources to pay the counterparty or pay wages to employees in the next period.

In what cases is bankruptcy carried out?

Bankruptcy of an enterprise is a procedure that can lead to a variety of circumstances. Among them:

• financial crisis of the organization;
• ineffective leadership;
• lack of demand for products;
• loss of suppliers or customers;
• problems in production, etc.

However, regardless of the reasons, one of the main conditions for bankruptcy is the inability to cover the company's monetary obligations from its assets within three months from the moment they arose.

At the same time, to whom there are debts does not play a special role: these can be employees of the enterprise, government agencies, counterparties, a bank lending institution, etc.

The amount of debt must be at least three hundred thousand rubles (over time it may change upward).

Where to begin

As an example, we will consider a situation where the company itself becomes the initiator. She has debts totaling over 300,000 rubles, and management understands that they cannot cope with this debt on their own.

The law provides for situations when a legal entity itself is obliged to file a bankruptcy petition:

• satisfaction of the demands of one creditor leads to dissatisfaction of others;
• the company has signs of insolvency, insufficient property;
• There is a delay in paying salaries to employees for a period of more than 3 months.

The organization is obliged to file a claim with the court within a month after at least one of the above circumstances occurs.

An application for bankruptcy of a legal entity can be sent to the Arbitration Court by the authorized head of the company. You can also involve a law firm in the case, which is engaged in supporting the bankruptcy procedure of legal entities.

Legal support for bankruptcy is a service in demand on the market. The process is long, complex, and has a lot of nuances, especially when there are a lot of debts and creditors. It is clear that these are not free services, but often you simply cannot do without them, especially if the LLC management has no experience in this matter.

What to do if the counterparty owes money, but is not yet bankrupt

From April 3, 2021, a moratorium on bankruptcy of enterprises was introduced (Article 5 of Federal Law No. 98-FZ dated April 1, 2020). Under a moratorium, only the debtor himself can initiate bankruptcy.

According to statements from creditors, the Government decided to extend the moratorium until January 7, 2021. Individual entrepreneurs and companies operating in sectors of the economy affected by COVID-19 will be eligible for its extension. A complete and current list with OKVED codes is posted on the Federal Tax Service website.

The moratorium prevents the affected company from paying profits and dividends, so the debtor can refuse the moratorium. To do this, he publishes a message on the EFRSB website. The refusal will remove all restrictions, but will give creditors the opportunity to file for bankruptcy (Article 3 of Federal Law No. 149-FZ of April 24, 2020).

Here's what you can do to collect debt during the pandemic.

Agree with the debtor

Find out from the counterparty why he was late. Maybe these are temporary difficulties or he forgot about the payment. Consider the options: extend the deadline for paying the debt, change the currency, reduce the interest accrued for late payments, give the debtor a deferment for a couple of months, or offer to repay the debt in installments.

There is a chance to convince the debtor to initiate bankruptcy on his own. And then proceed as described above. The only negative is that it will attract other lenders.

Trying to come to an agreement is a risk. The debtor may meet you halfway and repay the debt, neglecting the demands of other creditors. But if the matter reaches bankruptcy within six months, the money or property received may be taken away from you (Article 61.6 of the Federal Law of October 26, 2002 No. 127-FZ).

This is called challenging the transaction and is due to the fact that the debtor has given you preference over other creditors. Creditors or the manager can challenge the transaction (Article 61.3 of Federal Law No. 127-FZ of October 26, 2002).

Apply to the court for debt collection

A moratorium on bankruptcy does not prohibit you from filing an application for debt repayment in court. Before the moratorium, it would have been possible to initiate enforcement proceedings with a court decision, but now the FSSP does not carry out collection procedures. With a writ of execution you can:

• seize or take interim measures on the debtor's property;
• recover money after the moratorium is lifted;
• initiate bankruptcy of the debtor if the moratorium does not apply to him.

For the moratorium to cease to apply, you need to wait until it ends or convince the debtor to abandon it. The applicant creditor is in an advantageous position because he has the right to choose an arbitration manager, which gives him control over the procedure.

Collecting documents and submitting an application to the Arbitration Court

The company, on its own or with the involvement of a representative, draws up a statement of claim to the Arbitration Court and attaches a package of required documents to it. The content of the application is reflected in Article 37 of Federal Law-127, the list of required papers is in Article 38 of the same Federal Law. The company representative will receive a decision on acceptance of the application within 5 days.

To consider a case on declaring a debtor bankrupt, it is necessary to involve an arbitration manager who will analyze and regulate the financial side of the issue. In the ruling, the court will indicate a specific candidate for a manager or a list of SROs; the selected specialist must be a member of one of them.

Within 15-30 days from the date of the ruling, the first court hearing is organized, at which it is determined whether the legal entity has signs of bankruptcy. By this meeting, it is necessary to decide on the candidacy of the financial manager.

If the application is found to be justified, the court approves the manager, and the observation stage begins. An exact decision on the future of the company is made 7 months after filing a claim in court.

Filing a bankruptcy petition

According to Art. 7 of the Federal Law of October 26, 2002 No. 127-FZ “On Insolvency (Bankruptcy)” the right to apply to the arbitration court with an application to declare the debtor bankrupt belongs to the debtor, bankruptcy creditor, authorized bodies, as well as an employee, former employee of the debtor who has claims for payment of severance pay and (or) wages.

An application to declare a debtor bankrupt is always submitted to the arbitration court at the location of the debtor. The requirements for the content of the debtor's application are set out in Art. 37 of the Federal Law of October 26, 2002 No. 127-FZ “On Insolvency (Bankruptcy)”, according to which the debtor’s application is submitted to the arbitration court in writing.

The specified application is signed by the head of the debtor - a legal entity or a person authorized in accordance with the constituent documents of the debtor to file an application for declaring the debtor bankrupt, or by the debtor - a citizen.

Form and content of the debtor's application

The debtor's application may be signed by the debtor's representative if such authority is expressly provided for in the representative's power of attorney.

The debtor's application must indicate:

• name of the arbitration court to which the said application is submitted; • the amount of creditors' claims for monetary obligations, including the deadline for fulfillment of which occurred on the date of filing the debtor's application with the arbitration court, in an amount that is not disputed by the debtor, indicating the reasons for the debt; • the amount of debt for compensation for harm caused to the life or health of citizens, payment of compensation in excess of compensation for harm, remuneration of the debtor’s employees and payment of severance pay to them, the amount of remuneration for the authors of the results of intellectual activity; • amount of debt on mandatory payments; • justification for the impossibility of fully satisfying the claims of creditors or a significant complication of economic activity when foreclosure on the debtor’s property or other actions that were the basis for filing an application in accordance with Federal Law No. 127-FZ of October 26, 2002 “On Insolvency (Bankruptcy)”; • information about statements of claim against the debtor accepted for proceedings by courts of general jurisdiction, arbitration courts, arbitration courts, about writs of execution, as well as about other documents presented to write off funds from the debtor’s accounts without acceptance; • information about the debtor’s property, including cash, and accounts receivable; • registration data of the debtor - legal entity (state registration number of the record of state registration of the legal entity, taxpayer identification number); • numbers of the debtor's accounts in banks and other credit organizations, addresses of banks and other credit organizations; • name and address of the self-regulatory organization, which is determined in the manner established in accordance with paragraph 5 of Art. 37 of the Federal Law of October 26, 2002 No. 127-FZ “On Insolvency (Bankruptcy)”, and from among the members of which a temporary manager must be approved • list of attached documents.

If the debtor uses information constituting a state secret in its activities, the application shall indicate the form of access to state secrets for the debtor's manager.

The debtor's application may contain other information relevant to the consideration of the bankruptcy case.

The debtor's petitions may be attached to the debtor's application.

If the debtor's application does not indicate the candidacy of a temporary manager, additional requirements for the candidacy of a temporary manager may be included in the debtor's application.

The application of the debtor-citizen also indicates information about the debtor’s obligations not related to business activities.

The debtor is obliged to send copies of the debtor's application to bankruptcy creditors, to authorized bodies, to the owner of the property of the debtor - a unitary enterprise, to the board of directors (supervisory board) or other similar collegial management body, as well as to other persons in cases provided for by Federal Law No. 127 of October 26, 2002 - Federal Law “On Insolvency (Bankruptcy)”.

The debtor, no less than fifteen calendar days before the date of filing the debtor’s application, is obliged to publish a notice of the debtor’s application to the arbitration court by including it in the Unified Federal Register of Information on the Facts of the Activities of Legal Entities. Documents attached to the debtor's application Along with the documents provided for by the Arbitration Procedural Code of the Russian Federation, the debtor's application is accompanied by documents confirming: • the existence of debt, as well as the debtor's inability to satisfy the creditors' demands in full; • the basis for the debt; • other circumstances on which the debtor's application is based.

The debtor's application is also accompanied by: • constituent documents of the debtor - a legal entity, as well as a certificate of state registration of a legal entity or a document of state registration of an individual entrepreneur; • a list of the applicant's creditors and debtors with a breakdown of accounts payable and receivable and indicating the addresses of the applicant's creditors and debtors; • balance sheet as of the last reporting date or documents replacing it or documents on the composition and value of the debtor-citizen’s property; • decision of the owner of the debtor's property - a unitary enterprise or the founders (participants) of the debtor, as well as another authorized body of the debtor on the debtor's appeal to the arbitration court with an application from the debtor if such a decision exists; • decision of the owner of the property of the debtor - a unitary enterprise or the founders (participants) of the debtor, as well as another authorized body of the debtor on the election (appointment) of a representative of the founders (participants) of the debtor or a representative of the owner of the property of the debtor - a unitary enterprise; • minutes of the meeting of the debtor's employees, at which a representative of the debtor's employees was elected to participate in the arbitration process in the bankruptcy case, if the said meeting was held before the filing of the debtor's application; • a report on the value of the debtor's property prepared by an appraiser, if such a report is available; • documents confirming that the debtor's manager has access to state secrets, indicating the form of such access (if the debtor has a license to carry out work using information constituting a state secret); • other documents in cases provided for by Federal Law No. 127-FZ dated October 26, 2002 “On Insolvency (Bankruptcy)”. The debtor's application shall be accompanied by the originals of these documents or their duly certified copies. Form and content of the application of the bankruptcy creditor of the employee, former employee of the debtor The application of the bankruptcy creditor, employee, former employee of the debtor to declare the debtor bankrupt (hereinafter referred to as the creditor’s application) is submitted to the arbitration court in writing. The application of a creditor-legal entity is signed by its head or representative, the application of a creditor-citizen is signed by this citizen or his representative. The creditor's application must indicate: • the name of the arbitration court to which the creditor's application is submitted; • name (last name, first name, patronymic) of the debtor and his address; • registration data of the debtor - legal entity (state registration number of the record of state registration of the legal entity, taxpayer identification number); • name (last name, first name, patronymic) of the bankruptcy creditor, employee, former employee of the debtor, their addresses; • the amount of claims of the bankruptcy creditor, employee, former employee of the debtor against the debtor, indicating the amount of interest and penalties (fines, penalties) payable; • the obligation from which the debtor's claim to the bankruptcy creditor, employee, former employee of the debtor arose, and the deadline for fulfilling such an obligation; • in cases provided for by Federal Law No. 127-FZ of October 26, 2002, a decision of a court, arbitration court or arbitration tribunal that has entered into legal force, considering the claims against the debtor of the bankruptcy creditor, employee, former employee of the debtor, as well as a judicial act of the court or arbitration court , on the basis of which a writ of execution was issued for the forced execution of the arbitration court decision; • evidence of the grounds for the debt (invoices, delivery notes and other documents); • the candidacy of a temporary manager (last name, first name, patronymic of the arbitration manager, name and address of the self-regulatory organization of which he is a member) or the name and address of the self-regulatory organization from among whose members the temporary manager must be approved; • list of documents attached to the creditor's application. The bankruptcy creditor, employee, or former employee of the debtor in the creditor’s application has the right to indicate additional requirements for the candidacy of a temporary manager. The creditor's application may contain other information relevant to the consideration of the bankruptcy case. The petitions available from the bankruptcy creditor, employee, or former employee of the debtor may be attached to the creditor's application. The bankruptcy creditor is obliged to send a copy of the creditor's application to the debtor. The creditor's claim may be based on a combined debt from various obligations. Bankruptcy creditors or employees, former employees of the debtor have the right to combine their claims against the debtor and go to court with one application from the creditor. Such a statement is signed by bankruptcy creditors or employees, former employees of the debtor, who have consolidated their claims. Documents attached to the creditor's application In addition to the documents provided for by the Arbitration Procedural Code of the Russian Federation, the creditor's application is accompanied by documents confirming: • the debtor's obligations to the bankruptcy creditor or an employee, former employee of the debtor, as well as the existence and amount of debt under these obligations; • evidence of the grounds for the debt (invoices, delivery notes and other documents); • other circumstances on which the creditor's application is based. The creditor's application, signed by a representative of the bankruptcy creditor or a representative of the debtor's employees, is also accompanied by a power of attorney confirming the authority of the person who signed the said application to submit it, or in cases provided for by an international treaty of the Russian Federation or federal law, another document confirming the authority of such representatives. The creditor's application must be accompanied by the final decisions of the court, arbitration court, or arbitration tribunal that considered the bankruptcy creditor's claim against the debtor.

If the claim against the debtor of the bankruptcy creditor, employee, former employee of the debtor is confirmed by a decision of the arbitration court, the bankruptcy creditor's application must also be accompanied by a judicial act of the court or arbitration court, on the basis of which a writ of execution was issued to enforce the decision of the arbitration court.

Stages of bankruptcy of a legal entity

Observation

The bankruptcy itself is still far away; the first stage, “Monitoring,” is actually preparation for the procedure for approving the insolvency of a legal entity. An arbitration manager appointed by the court intervenes and conducts an analysis of the company.

At this stage, the company exists, the composition of the management remains unchanged, the management bodies are still competent to make decisions regarding activities, they can even create branches, initiate reorganization, etc. But all actions are carried out only under the control of the arbitration manager and with his consent.

What does the manager do at the observation stage:

• takes measures to preserve the debtor's property. That is, it freezes all accounts, creates a register of property, and monitors its safety. A company that is potentially bankrupt cannot dispose of its assets;
• conducts an analysis of the debtor’s financial condition, identifies its creditors, and the volume of obligations;
• compiles registers of creditors with their requirements, and also notifies them of the commencement of the company’s bankruptcy proceedings;
• organizes a meeting of creditors.

5 days before the scheduled date of the next meeting (7 months after the company goes to court), the manager provides the court with generated reports, registers, minutes of the meeting of creditors and an opinion on the financial condition of the debtor.

When checking, the manager also analyzes the debtor’s past transactions. If suspicious transactions are discovered that indicate the diversion of assets, they will be disputed and declared void.

Financial recovery

If the first stage was successful for the debtor, the next stage of bankruptcy of a legal entity begins - financial recovery. Its essence is that the manager is trying to restore the stability of the company, its solvency to cover debts.

An administrative manager is appointed who will control everything, and his candidacy is approved by the Arbitration Court. What he will do:

• maintain registers of creditors, organize and conduct their meetings;
• create a wellness plan and monitor its implementation;
• control all transactions, mandatory approval is required;
• submit petitions to the court to remove the manager, to take additional measures to ensure the safety of the debtor’s property, to declare transactions illegal, etc.

The financial recovery stage lasts for the period established by the court, but it cannot last more than 2 years. If during this time the company copes with all debts, the bankruptcy case is terminated.

External control

If financial recovery does not help to cope with obligations, the next stage begins - external management. It is appointed for a period of no more than 18 months, but depending on the circumstances it can last another six months.

In essence, this is an extension of the stage of financial recovery, but under the guidance of another specialist. An external manager is appointed, who also develops a “rescue plan” for the troubled company and tries to implement it.

The powers of the previous manager are completely eliminated and they are taken over by an external manager. He can either fire the previous manager or offer him another position in the company.

To restore solvency, the manager can close unprofitable production, sell the company's property, place additional shares, replace assets, etc. The sale of the enterprise can be organized.

And only at the end of this stage can we talk about declaring a legal entity bankrupt. If the external manager was unable to do anything, the court makes an appropriate decision and initiates bankruptcy proceedings.

Bankruptcy proceedings

According to the law on bankruptcy of legal entities, if external management does not produce results, debts still exist, the court still declares the company bankrupt. He appoints a bankruptcy trustee who will conduct a full inventory of the company’s property and organize its sale. The proceeds will be used to satisfy the claims of creditors.

Bankruptcy proceedings last no more than 6 months, but at the request of interested parties it can be extended for another six months.

The manager immediately after taking office publishes information about the insolvency of the company in the register of bankruptcy of legal entities. Once information is discovered in the case, other creditors may appear and may file their claims.

What are the duties of a bankruptcy trustee:

• organizing the safety of the debtor’s property, conducting its expert assessment for further sale;
• identification of the debtor’s property, which is in the use of other persons;
• organizing the reduction of workers, notifying them about the upcoming event;
• drawing up and complying with a scheme for satisfying creditors' claims.

The order of satisfaction of creditors' claims is prescribed in Article 134 of Federal Law No. 127. In the first place are creditors whose debts arose even before the legal entity was declared bankrupt.

After bankruptcy proceedings are completed, the company's assets are sold and the proceeds are used to cover debts, the bankruptcy case is closed. The arbitration court initiates the exclusion of a legal entity from the Unified State Register of Legal Entities.

Main stages of bankruptcy - goals and relationships

Each of the stages of declaring a company insolvent is closely interconnected and is carried out in order to achieve its goals. The timing of the activities, their goals and objectives are listed in Law No. 127-FZ. Let's take a closer look at all five procedures:

Stage 1. Observation

An analysis of the debtor’s current financial situation is carried out at the preliminary observation stage (Article 62—No. 127-FZ). For an independent assessment of the financial situation, a temporary manager is appointed, who publishes a notice of the introduction of supervision. This stage is also appointed to ensure the inviolability of the enterprise’s assets, notify creditors, and compile a register of claims. The company's management retains its powers, but with some (very significant) restrictions. The maximum duration of observation is 7 months. During this period, the manager conducts a full collection of information about the debtor, his financial and economic activities, the amount of assets and liabilities, and the possibility of restoring the normal functioning of the business entity. Based on the results, the manager prepares a summary report, which, along with the minutes of the first creditors' meeting, is submitted to the arbitration court. Then the court makes a decision on the advisability of further consideration of bankruptcy or termination of the case in connection with the possibility of rehabilitating the organization in order to repay debts in full. It is also possible to sign a settlement agreement and restructure obligations.

Stage 2. Financial rehabilitation

The goal of the debtor’s recovery is to restore the financial solvency of the legal entity and, accordingly, repay the resulting debts. The procedure is carried out in accordance with legislative norms in accordance with Art. 76—Law No. 127-FZ. This stage is not assigned in all cases, but only when hidden potentials for business resuscitation are identified. The decision to apply is approved at the first creditors' meeting together with the development of a preliminary debt repayment schedule. Among the consequences of reorganization, the following steps should be highlighted:

• Cancellation of absolutely all pre-trial actions to repay debts, including already issued collection orders.
• Suspension of dividends, ban on payment of interest on shares.
• Prohibition on carrying out any transactions with obligations (barters, offsets, etc.).
• Removal of seizures from the debtor's assets, suspension of the accrual of sanctions on debt amounts.

An independent manager is appointed responsible for the implementation of the adopted financial recovery plan. The maximum duration is 2 years (calendar). If the measures taken do not bring the expected results in the form of an improvement in the financial condition of the legal entity, a transition is made to external management or immediately to bankruptcy proceedings, that is, to the sale of assets.

Stage 3. External control

In accordance with the requirements of stat. 93-123 of Law No. 127-FZ, the stage of external management is introduced following the results of reorganization if it is impossible for the debtor to return to successful life. Or it is used as the only alternative in the absence of reserves for restoring the normal financial situation of the company. The management plan is developed by an expert manager and includes:

• Closing unprofitable business areas.
• Change of activity strategy and repurposing of production projects.
• Sales of property assets of the organization.
• Collection of receivables.
• Obtaining loans from third parties, increasing the size of participant deposits.
• Additional issue of own shares for circulation on the stock market.
• Conducting an inventory of all assets, identifying internal business reserves.

How long does the LLC bankruptcy procedure take?

This is a complex and long process. If the bankruptcy of an individual or individual entrepreneur lasts 1-2 years, then with a legal entity everything is completely different.

Bankruptcy of legal entities is carried out only by the Arbitration Court according to the scheme established by law. The duration of the stages is as follows:

1. Collection of documents and filing a claim. If the bankruptcy of a legal entity is handled by a law firm, everything will go quickly. This stage will not last more than a couple of weeks, it can be ignored. Self-preparation may take about a month.
2. Submitting an application to the Arbitration Court and introducing the observation stage - 7 months.
3. Financial recovery - 2 years.
4. External management - 1.5-2 years.
5. Bankruptcy proceedings - 6-12 months.

In total, the law on bankruptcy of legal entities provides for a period of consideration of a company's insolvency case of 55-67 months. That is, management needs to immediately be prepared for the fact that the process will take approximately 5 years.

Outcome options when filing an insolvency claim

When the arbitration court has examined in detail all the submitted requests regarding the issues of declaring the borrower insolvent, a single decision from the list of possible ones can be made:

• Approval of the claim and determination of the date when the appointment of a receiver from the court will be carried out.
• The judge makes a decision to reject the consideration and launch of the case if the claim was filed with the authorities with multiple violations.
• Also, the court will refuse to take further action on this issue if the amount of debt obligations or the period does not comply with the specified rules in the bankruptcy procedure (Article 43).
• The court may give the applicant the opportunity to correct existing shortcomings, while the application will remain unattended for the entire time spent on correction.
• Return of the filed claim if no changes were made to the document during the allotted period of time for adjustments.

If the claim was successfully accepted by the judge, then the first stage of obtaining bankruptcy status will be determined at the first meeting in court. Based on the results of the meeting, it is also possible to reject the observation stage and complete the insolvency procedure if the above requirements suddenly turn out to be not sufficiently thorough.

Is it worth contacting bankruptcy law firms?

Whether your company needs help with bankruptcy is up to you to decide. In essence, it is expressed in legal advice, collecting documents for the court and drawing up a statement of claim. Then the case will be dealt with by the arbitration manager, then by the external and bankruptcy trustee.

But in any case, the company may need representatives in court and assistance in preparing for the next hearings. If we are talking about a large company with a lot of debts, it is better to use the services of companies that specialize in bankruptcy of legal entities.

Signs (grounds) of bankruptcy

Signs (grounds) of bankruptcy are the insolvency of the financial obligations of an enterprise or citizen to third parties, as well as the inability to pay their claims at the current moment, in the presence of a three-month delay.

But in order for the Arbitration Court to declare a legal or individual person bankrupt, and it is impossible to do this in any other way, the enterprise’s debt at the time of going to court must be above 100,000 rubles. For citizens, this ceiling is only 10 thousand rubles.

At the same time, the assets of the enterprise may well exceed the volume of creditors’ claims, and the value of the citizen’s property should be less than the total value of financial liabilities.

FAQ

What is the essence of bankruptcy of legal entities?

This is a procedure as a result of which the company will be liquidated, and all its property and assets will be sold to cover debts. As a result, the organization is declared bankrupt and all outstanding debts are written off.

Who is eligible for bankruptcy of legal entities in 2020-2021?

All organizations that have signs of bankruptcy under Federal Law-127. And this means having debts in the amount of 300,000 rubles and overdue obligations for more than 3 months.

Are there differences in the procedure depending on the company's activities?

The Insolvency/Bankruptcy Law allocates separate chapters of proceedings for certain types of activities of legal entities. Excellent procedures are provided for agricultural enterprises, financial organizations, credit companies, developers, and natural monopolies.

Is it possible for a legal entity to be bankrupt by a creditor?

By law, a creditor of a law firm can initiate a bankruptcy case.

How much will the bankruptcy procedure for a legal entity cost?

In addition to the duration, the process is also costly. Even if you do not use the services of bankruptcy support firms, the company will pay several hundred thousand rubles for the participation of managers in the case. Plus will give as payment a certain percentage of the proceeds from the sale of the property. There is no single figure; it all depends on the size of the company and the complexity of the case.

Sources:

1. Federal Law-127 On insolvency (bankruptcy).

about the author

Irina Rusanova - higher education at the International East European University in the direction of "Banking". Graduated with honors from the Russian Economic Institute named after G.V. Plekhanov with a major in Finance and Credit. Ten years of experience in leading Russian banks: Alfa-Bank, Renaissance Credit, Home Credit Bank, Delta Credit, ATB, Svyaznoy (closed). He is an analyst and expert of the Brobank service on banking and financial stability. [email protected]

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Requirements for the debtor's statement of claim

A claim for failure to repay all debt obligations and declaring bankruptcy must first of all meet all points in Art. 37-41 No. 127 Federal Law and Art. 125, 126 Arbitration Code

1. The paper must be filed with the court in writing. The application is signed by the head of the legal entity or a person who has the legal right to do so.
2. The content must include the following information:

• The name of the judicial authority where the appeal will be filed.
• The volume of financial penalties from lenders that cannot be challenged by the debtor.
• The amount of debt obligations for compensation of damage and possible harm to the health of citizens, as well as for remuneration of persons who have demonstrated mental activity.
• The total volume of debts for mandatory payments.
• Grounds and circumstances under which satisfaction of creditors became impossible or other compelling reasons.
• Information about the property that is in the possession of the debtor, as well as about financial resources.
• Registration data of the debtor, specifically: state number of the state registration record of the legal entity, ID number of the person paying taxes.
• Valid account numbers of the legal entity in banking organizations and similar credit companies, their location.
• The full name and address of the organization from which the manager was sent for a certain period of time.
• List of documents that are attached.

1. The debtor's claim contains some information about the borrower's obligations that do not relate to the entrepreneur's activities.
2. The legal entity must provide photocopies of the statement of claim to bankruptcy lenders, authorized bodies, the owner of the property, the board of chief executives or an alternative management body.

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