Voluntary liquidation of enterprises through the bankruptcy procedure

What is voluntary liquidation through bankruptcy?

Voluntary liquidation of an enterprise through the bankruptcy procedure is a special type of voluntary liquidation, when the owners themselves initiate the bankruptcy of the firm, realizing that it has large debts and is unable to repay them, and also optimizes the process of closing the business and allows maximizing benefits for all participants.

Advantages of voluntary liquidation through bankruptcy

Voluntary liquidation of the enterprise through the bankruptcy procedure has significant advantages compared to the usual method of liquidation.

1. This avoids the complex process of compulsory liquidation through bankruptcy, as the owners themselves initiate the procedure. In this way, they control and accelerate the liquidation process.
2. Such a procedure reduces the risks for owners and managers associated with violation of legislation in the case of ordinary liquidation.
3. Selling assets at auction at market prices allows you to get the maximum revenue and satisfy the demands of creditors in a larger volume.

Therefore, voluntary liquidation through bankruptcy optimizes the business closing process, reduces risks and increases benefits for participants.

Disadvantages of voluntary liquidation due to bankruptcy

It is also not necessary to forget about the disadvantages of the voluntary liquidation of the enterprise through the bankruptcy procedure in order to be armed in the process of taking such measures.

These disadvantages include:

• Costs for the procedure. The procedure for the voluntary liquidation of the enterprise through the bankruptcy procedure requires certain costs related to the payment of services, conducting an auction, etc.
• Duration of the procedure. Although this procedure is less complicated, it can be quite long.

However, weighing all the pros and cons, it is important to understand exactly what the company needs and what goals are priorities.

Stages of voluntary liquidation due to bankruptcy

1. The owners or founders decide to liquidate the firm due to bankruptcy - realizing that it is unable to pay its debts.
2. A liquidation commission is created by the owner or a person authorized by him.
3. The liquidation commission notifies all creditors of the beginning of the bankruptcy and liquidation procedure in accordance with the procedure established by law.
4. A detailed liquidation plan is being developed with the definition of terms and stages.
5. All company property is put up for auction and sold at market prices.
6. The money from the sale is distributed among creditors to pay off debts.
7. After completion of the procedure, the company is excluded from the registers.

How to feel confident in such a difficult situation?

Voluntary liquidation of an enterprise through the bankruptcy procedure is a really complex process that requires special knowledge and experience in the field of bankruptcy. After all, it is necessary to follow all legal procedures, to draw up documents correctly, to conduct an inventory, assessment and sale of assets, to distribute funds between creditors.

Therefore, it is better to contact professional lawyers who will accompany this process - develop a plan, provide consultations, and represent interests in court. The right decision would be to turn to the company "Prykhodko and Partners", whose experts have considerable experience in the field of bankruptcy.

Qualified lawyers are always ready to help you by optimizing the process and protect against possible risks.