Bankruptcy procedure of the enterprise – bankruptcy of legal entity. person in Ukraine

The bankruptcy procedure of a legal entity consists in the fact that an organization that cannot fulfill its financial obligations to creditors can be declared bankrupt, after which the procedure for liquidation or reorganization of this organization is carried out.

What are the established legal grounds for bankruptcy proceedings?

Bankruptcy proceedings can be initiated both by the legal entity itself and by its creditors. The main reasons for carrying out the procedure are non-fulfillment or improper fulfillment of obligations to creditors, lack of material means for further repayment of obligations, which must be confirmed by relevant reliable evidence. The list of necessary annexes to the application, which are proper evidence in the bankruptcy case, is defined by the Code of Bankruptcy Procedures. The main ones include proof of court fee payment and advance payment of the arbitration administrator's fee, proof of insolvency, a list of the debtor's property and creditors, the debtor's balance sheet and corporate documents, etc.

What stages does the bankruptcy procedure of legal entities consist of?

1. Submission of an application for insolvency;
2. Opening a bankruptcy case and imposing a moratorium on meeting creditors' demands;
3. Property disposal procedure, which includes:

• accounting of the debtor's assets;
• approval of the nomination of the arbitration manager;
• formation of the creditors' committee;
• consideration of creditors' claims;
• meeting of creditors.

5. Approval of the rehabilitation plan (restoration of the debtor's solvency) or transition to the liquidation procedure;
6. Distribution of the bankrupt's property among creditors according to the queues established by law;
7. Closure of bankruptcy proceedings.

What are the terms set in the bankruptcy procedure?

• the deadline for filing a bankruptcy petition is, on average, within 1 month from the moment when the actual inability of the bankrupt to fulfill his financial obligations was established;
• the term for the court to decide the issue of opening a bankruptcy case - no later than within 5 days from the moment of filing the application;
• the term for consideration of the case on the merits – the property disposal procedure takes place within a period of up to 170 calendar days, after which the rehabilitation procedure is established by law for up to 5 years, and the liquidation procedure
• within 12 months from the end of the property disposal procedure term;
• the term for submission of claims by creditors - no less than 30 days from the date of publication of the notice of the bankruptcy procedure.

What are the peculiarities of the bankruptcy procedure of a legal entity in Ukraine?

• both the debtor himself and his creditors have the right to initiate the bankruptcy procedure of the debtor at their own request;
• the creditor has the right to state his claims to the creditor within 30 days;
• the first stage in the legal process is the property disposal procedure;
• disposal of the debtor's property in the procedure has the right to be carried out exclusively by the manager of rehabilitation or realization, approved by a court decision;
• the law establishes the joint and several liability of the head of a legal entity in case of establishing the fact of bringing the enterprise to insolvency.

In the event that you have a situation in which it is impossible to repay the company's debts other than through the bankruptcy procedure, or you act as a creditor to a company that is unable to settle its debts, simply leave a statement on our website in the form below. We will become reliable partners in the legal support of your bankruptcy case. persons in Ukraine!