Bankruptcy procedure of a legal entity

Bankruptcy of a legal entity is a legal process aimed at settling the debtor's insolvency and meeting the demands of his creditors. This mechanism is an important element of the market economy, which allows for the orderly termination of the activities of insolvent enterprises and the protection of the interests of their creditors. The bankruptcy procedure is regulated by the Code of Ukraine on Bankruptcy Procedures, which defines the main stages, rights and obligations of all participants in the process.

Application of the bankruptcy procedure

The bankruptcy procedure is an effective mechanism that can be used in various situations of financial insolvency:

• Enterprises with significant debt.

In such cases, the bankruptcy procedure allows you to streamline the debt repayment process and carry out the restructuring procedure. This is especially true when the debts exceed the value of the company's assets, and the usual methods of debt repayment are no longer effective.

• A tool for lenders.

This procedure ensures a transparent and legally regulated process of distributing the debtor's assets among creditors.

Reasons for bankruptcy of legal entities

Bankruptcy of a legal entity can be caused by various factors, both external and internal.

External causes include:

• Economic crises and political changes;
• Decrease in demand for the company's products;
• Bankruptcy of partners or clients;
• Force majeure events.

Internal causes include:

• Growth of the company's debt;
• Excess personnel;
• Increase in production costs;
• Lack of financial resources;
• Stoppage in the production process.

Signs of bankruptcy of legal entities

Signs that may indicate impending bankruptcy:

1. Termination of payments to counterparties;
2. Stopping production processes;
3. Delays in payment of wages to employees;
4. Decrease in sales of products or services;
5. Inability to repay existing debts;
6. Bad changes in the company's financial statements.

Bankruptcy process

1. The bankruptcy procedure includes the following stages
2. Filing an application to the court.
3. Trial of the case.
4. Attempts to financially improve the enterprise due to restructuring or reorganization.
5. If previous measures are ineffective, the debtor is officially declared bankrupt.

An enterprise can independently declare bankruptcy, but the division of property will still take place through the court.

In case of bankruptcy, all property officially owned by a legal entity is subject to seizure and distribution. This includes real estate, equipment, vehicles, intangible assets, etc.

The process of extinguishing borgs

The redemption of borgs is carried out in accordance with the procedure prescribed by law:

1. Payments from the Borg to the police are covered by expenses for the bankruptcy procedure.
2. Then the harm will disappear, the life and health of the people will be improved.
3. Then payment of taxes and other obligatory payments.
4. The approaching deadline is the extinguishing of the borgs, which were not protected by the outpost.
5. The contributions of the members of the labor collective are returned to the statutory capital.
6. We are finally satisfied with all other benefits.

Your legal assistance

Legal part of the "Parto Partners" specialized on the right of the bankruptcy of de dosvіdcheni lawyers to give you a consultant of the bankrupt procedure, to pretend to be a non -chief document, to represent your izii from the court to the same to strangle the Zachist of rights.

We understand the complexity and importance of every bankruptcy case and must find the most effective solution for our clients, considering all legal and economic aspects of the situation.