How to liquidate an LLC with tax debts through the bankruptcy procedure?

Liquidation of an LLC with tax debts through the bankruptcy procedure is one of the ways to solve the company's financial problems if it cannot fulfill its obligations to creditors. This process includes a complex set of steps and actions aimed at restructuring the debt or closing the enterprise as a whole. The relevance of the topic can be seen in the fact that, in general, the bankruptcy procedure itself allows to organize the demands of creditors and effectively distribute the organization's assets, with the aim of ensuring maximum satisfaction of creditors' demands. In this article, we will consider how to liquidate an LLC that has tax debts through the bankruptcy procedure?

What is the algorithm of actions for applying the bankruptcy procedure?

1. Providing a proper assessment of the company's financial condition.

Before deciding to file for bankruptcy, it is necessary to carefully assess the financial condition of your company. Professional auditors or financial consultants will be able to help you solve this issue, who will provide all the necessary information about whether the situation is hopeless or whether there is an opportunity to restore the organization's solvency. A complete and objective assessment will help to determine the next steps and make an informed decision regarding the liquidation of an LLC with tax debts.

2. Preparation of the necessary package of documents.

In order to start the bankruptcy procedure for an LLC, it is necessary to prepare a package of documents, which must include: a declaration of bankruptcy, financial statements of the enterprise, a list of creditors, evidence that will confirm the existence of a threat of insolvency of the legal entity, information that the enterprise's bank accounts do not have cash funds etc.

3. Appeal to judicial authorities.

In order to open proceedings on the case, the debtor or creditor submits a written application to the commercial court. After its submission, the court considers the application and makes a decision on whether there are legal grounds for opening proceedings.

It is worth noting that from the moment the proceedings are opened, a moratorium on forced debt collection from the debtor of monetary funds begins to apply.

After opening the case, the court appoints an arbitration administrator who has the necessary experience and qualifications to carry out the following stages of the case:

1. disposal of the debtor's property;
2. rehabilitation - judicial and pre-trial (financial rehabilitation of the enterprise);
3. bankruptcy liquidation.

Its main task is to control the activities of the LLC during bankruptcy and protect the interests of creditors.

What if the LLC has tax debts?

In such a case, when the case has reached the stage of liquidation of a legal entity, the arbitration administrator satisfies the demands of creditors in the following order (in turn):

1. salary requirements for company employees; those stipulated by insurance contracts; those incurred by the creditor during bankruptcy proceedings; those that were used for the audit;
2. insurance premiums;
3. tax payments and fees;
4. obligations that are not secured by collateral;
5. contributions to the statutory fund

All other demands of creditors are subject to satisfaction in the sixth place.

Thus, tax payments and fees are subject to satisfaction only in the third instance. And if the funds of the legal entity are not enough to satisfy them, then in this case the claims are considered repaid.

If you want to liquidate your LLC that has tax debts due to the bankruptcy procedure and you do not know all the nuances of this case, contact the Prykhodko and Partners law office for help. Our experienced lawyers with deep knowledge and understanding of the bankruptcy procedure of legal entities will provide you with all comprehensive answers to questions that will arise in the process of cooperation and will develop an optimal strategy to achieve your goals. To calculate the price of liquidation of the company through the bankruptcy procedure, fill out the form below.