Liquidation procedure in the case of bankruptcy

The opening of the liquidation procedure of an enterprise due to bankruptcy is a critical moment in its life cycle, which is accompanied by a number of legal consequences.

Features of the liquidation procedure

The following features should be carefully considered to resolve issues related to bankruptcy:

• Termination of economic activity: In the event of a decision declaring the debtor bankrupt, his economic activity is terminated, except for the completion of the technological cycle for the sale of finished products.
• Status of monetary obligations: All monetary obligations of the debtor are considered due, that is, they are subject to determination and satisfaction within the framework of the liquidation procedure.
• Exemption from paying taxes and fines: The bankrupt is exempted from paying taxes, fines and other sanctions, except for the costs of the liquidation procedure.
• Public information about the financial condition: Information about the financial condition of the debtor becomes public, and his property is subject to realization in accordance with the requirements of the law.
• Powers of governing bodies and officials: The powers of the bankrupt's governing bodies are terminated, and the officials must hand over the necessary documentation to the liquidator.
• Satisfaction of creditors' claims: Creditors' claims are satisfied in accordance with the order of priority and at the expense of the funds received from the sale of the bankrupt's property.

Appointment of the liquidator and his powers

The decision to declare the debtor bankrupt includes the appointment of an arbitration administrator as a liquidator. This person controls and manages the liquidation process until its completion.

The order of satisfaction of creditors' demands

The demands of creditors are satisfied in the order strictly defined by law:

1. Salary, insurance benefits, court costs and audit.
2. Compensation for damage to life and health, insurance premiums, refund of funds from the Social Security Fund.
3. Payment of taxes and fees, state reserve requirements.
4. Claims of unsecured creditors.
5. Return of labor team contributions.
6. Other requirements.

Completion of the bankruptcy liquidation procedure

The last stage is the preparation and presentation by the liquidator of the report on the work performed and the liquidation balance sheet. If the property is insufficient for settlement, the court may decide to liquidate the enterprise. If the liquidator has not identified or sold all the assets, the court can appoint a new liquidator.

If there is a sufficient amount of assets for settlement, the debtor can continue to operate. The court can also liquidate the debtor without debts if his remaining assets are not sufficient for further activities.

The bankruptcy procedure is a complex legal process that requires careful compliance with all legal norms and timely actions. By contacting the law firm "Prykhodko and Partners", you will receive qualified assistance from specialists throughout the liquidation process.