Write-off of receivables upon liquidation of the enterprise

When creating their own enterprise, citizens do not often think about its possible liquidation, but life always makes its adjustments and any business is not immune to this. This may be due to various factors such as: changes in the market conditions of conducting business activities, internal and global crises in states or hostilities, etc. In the process of such an important period, when the issue of liquidation of a legal entity is actually being resolved, one of the important steps is to optimize the financial condition of the enterprise itself by writing off receivables. This shows the relevance of this topic. In this article, we will consider in detail how to write off receivables during the liquidation of the enterprise in accordance with the norms of the current legislation of Ukraine.

What is meant by the concept of receivables of a legal entity?

Turning to the order of the MFU "On the approval of the National Regulation (standard)" dated October 8, 1999 No. 237, we can find the following definition of receivables, namely, the amount owed by debtors to the enterprise on a certain date.

Debtors are necessarily natural or legal entities.

In other words, this debt arises as a result of concluded contracts with individuals or legal entities, when goods or services are provided, but payment for them has not yet reached the final recipient. In order to maintain the liquidity of the enterprise and ensure the stability of the financial situation, it is important to effectively manage this receivable, regularly monitoring the terms of payment for the services or goods provided, while taking appropriate measures to collect it.

In what cases is it possible to write off receivables during the liquidation of a legal entity?

When the enterprise has signs that it will not fulfill its current debt obligations to creditors, and the statute of limitations for their collection has expired, then such debt can be considered bad.

In addition, bad debt for legal entities is also recognized in cases where:

• the enterprise has debt obligations to creditors, but the statute of limitations for applying to court to collect them has passed (3 years);
• the enterprise has the monetary amount of the remaining fund of the lottery as of December 31 of the current year;
• the enterprise has an asset in the form of corporate rights or non-debt securities, the issuer of which has been declared bankrupt or terminated as a legal entity in connection with its liquidation;
• the enterprise has debt obligations to creditors that cannot be collected due to insufficient assets, but on the condition that such actions of forced collection of the debtor's property did not lead to full repayment of the debt;
• the enterprise has debt obligations to creditors that cannot be collected due to force majeure or force majeure, confirmed in accordance with the current legislation of Ukraine;
• debts of business entities declared bankrupt in accordance with the procedure established by law or terminated as legal entities in connection with their liquidation.

Thus, if a legal entity is liquidated and its debts fall under the category of bad debts, then such debts of the enterprise are subject to write-off.

If you want to liquidate the company and at the same time want to write off its receivables, then in this case, contact experienced lawyers - Prykhodko and Partners law firm. Our team has excellent knowledge in the field of tax and financial law, as well as relevant experience in conducting similar cases, which in practice helps to solve the debt write-off of a legal entity.

We guarantee you a professional approach, confidentiality and effectiveness in achieving your goals. So don't delay and apply!