Support of creditors in the bankruptcy procedure

Bankruptcy of a debtor is a complex and lengthy process in which the rights and interests of creditors must be properly protected. That is why professional legal support of creditors during bankruptcy proceedings is extremely important.

The role of creditors in the bankruptcy procedure

Creditors play a key role in the bankruptcy procedure, as their claims against the debtor must be satisfied in the order determined by law and within the limits of the debtor’s available property. They have the right to:

• Participate in meetings.

Creditors have the right to participate in general meetings of creditors, where key issues of bankruptcy proceedings are considered. During such meetings, creditors can express their opinion, discuss the actions of the arbitration administrator, the procedure for selling off the debtor’s property, etc.

• Appeal decisions.

Creditors have the right to appeal the decision and actions of the arbitration administrator, as well as the decision of the commercial court, if they believe that their rights or legitimate interests have been violated. The appeal takes place in court.

• Control the manager’s activities.

Creditors have the right to monitor the work of the arbitration administrator, to demand from him reports on the work performed, expenses for the bankruptcy procedure, etc.

Support of creditors by lawyers

Legal support for creditors includes a set of measures aimed at protecting their rights and interests at all stages of bankruptcy proceedings. In particular, the main tasks of lawyers include:

• Analysis of the debtor’s financial condition and the prospects for meeting creditors’ demands.

Lawyers carefully study the debtor’s financial statements, assets and liabilities in order to assess his real solvency. Possible sources of debt repayment are also analyzed: available property, expected income, etc.

• Preparation and submission of a bankruptcy petition.

Based on the results of the analysis, the lawyers prepare a substantiated statement to the commercial court about the initiation of the debtor’s bankruptcy case. In the application, all evidence of insolvency, debt calculations, requirements for future debt satisfaction, etc. are given.

• Representation of interests in court and other instances.

Lawyers represent the interests of creditors in court hearings, actively defend their claims, justify their position with appropriate evidence.

• Complaining of illegal actions.

If the rights of creditors are violated by the actions of the arbitration manager or court decisions, lawyers timely challenge such actions and decisions in an appeal or cassation procedure.

• Control of compliance with requirements and distribution of assets.

Legal support involves constant monitoring of compliance with the order of satisfaction of creditors’ demands provided for by law. The correctness and transparency of the distribution of the debtor’s property assets among creditors is also monitored.

Choose legal support

If you find yourself in a situation where a debtor has filed for bankruptcy, it would be extremely beneficial to seek professional legal advice. The legal company “Prykhodko and partners” has many years of successful experience in representing the interests of creditors during bankruptcy procedures.

By cooperating with experienced specialists, you can be sure that your rights will be protected at the highest level at every stage of the debtor’s complex bankruptcy process.