It would seem that it could be easier than declaring yourself or your legal entity as such an economic entity that cannot conduct economic activity? However, in practice, the correct implementation of this procedure is quite difficult. Therefore, the question of how to declare bankruptcy requires detailed consideration.
The fact is that the legislator introduced a complex legal procedure in order to protect persons
engaged in bankrupt
business activities from abuse.
For example, a company (legal entity) has gained a lot of debt over time, and in order not to pay money, it draws up the bankruptcy of the debtor. Or a negligent businessman decided that he had enough, and closes the case.
How to declare bankrupt, observing all the subtleties of the law
First you need to understand whether a legal entity falls under the concept of bankruptcy, which is associated with the inability to fulfill applications from creditors or to continue its business activities. The final decision is made by the arbitration court, and only he.
Step 1
To start the procedure, an application must be filed with the arbitration court. It is brought either by a representative of a legal entity (in the case of an entrepreneur, an application is submitted by him personally) or a creditor. By the way, in order for the court to accept the application of the creditor, the legal entity must owe it an amount of at least 100 thousand rubles, while “feed by promises” for more than three months.
Please note: the law defines which payments or debts are not considered as grounds for bankruptcy. Therefore, in any case, the assistance of a lawyer is necessary.
The application shall contain information on:
- the amounts that lenders want to receive;
- money that by law cannot be considered as sources of satisfaction of creditors' requests;
- Amounts required to pay tax liabilities;
- amounts that a bankrupt justifiably cannot pay;
- court cases (if any) in which the legal entity is involved;
- bank account numbers;
- the desired candidacy for the position of arbitration manager (the person who will share the property for all creditors).
Also provides complete information about all assets, cash accounts, etc.
Step 2
Within five days, a decision is made - after the arbitration court has studied all the materials. Bankruptcy as a legal mechanism is considered neglected.
However, it must be borne in mind that the court may refuse to consider the case if it decides that there are no special grounds.
Step 3
Between 15 and 30 days after filing, the application will be considered at the hearing. Actually, it can be considered a moment of truth in solving the difficult question of how to declare bankruptcy. Indeed, without an appropriate decision made by the arbitration court, bankruptcy does not make sense.
Step 4
The division of property according to the intentions of the arbitration manager (which is approved by the same court), the “closure” of all debts and the execution of documentary evidence of the liquidation of the enterprise or the termination of business.
Is the game worth the candle?
Bankruptcy is a complex and often very time-consuming legal procedure. In addition, fictitious bankruptcy provides for sanctions, up to the opening of a criminal case.
Therefore, you need to think and consult with a competent lawyer three times before deciding how to declare bankruptcy and bring a petition to court.