Possibility of bankruptcy of the enterprise. Signs of bankruptcy, assistance in analysis and procedures

The concept of bankruptcy is established by Federal Law N 127-FZ “On Insolvency (Bankruptcy)”, dated October 26, 2002. The legislator did not draw the line between bankruptcy and insolvency. Hence we have formal, but not practical synonyms. What is bankruptcy?

Bankruptcy concept

Insolvency (bankruptcy) is disclosed as the condition of the debtor recorded by the arbitration court. When the debtor can no longer:

fulfill credit obligations;
make mandatory payments;
pay your employees.

This condition entails the forced distribution of the debtor’s capital among other participants in the relationship. It is preceded by the establishment of judicial and creditor control.

Bankruptcy occurs in stages, in different ways and is not always completed. The actual status of bankruptcy is the final verdict, while preparations are.

Article 2 of the Law “On Bankruptcy” contains a voluminous list of terms, including bankruptcy, but excluding economic insolvency. The concept of insolvency does not exist in isolation, although in practice it has a broader meaning.

If bankruptcy represents the end of activity, then there is a way out of the insolvency stage. We can say that insolvency is a status caused by crisis phenomena in an enterprise, preceding bankruptcy if the problems are not resolved. Read more about what economic insolvency is.

Bankruptcy is defined through its signs, which represent a loss of solvency by the subject. Additional information about the concept and signs of bankruptcy and insolvency. The debtor can no longer pay his bills, and this is nothing more than insolvency.

The law interprets insolvency as the loss of the ability to meet obligations due to a deficit Money.

Bankruptcy is preceded by the establishment of judicial and creditor control.

According to the law, the debtor is still obliged to fulfill the accepted obligations. To do this, the court takes two paths in order to extract funds:

through the liquidation of the enterprise;
through enterprise reorganization.

It does not matter whether the subject continues to operate after the process. First, the court will order financial rescue procedures so that the debtor will be able to repay the debts in full. Otherwise, the company will be reorganized and liquidated to extract the maximum.

Reasons for bankruptcy

While persistent insolvency leads to bankruptcy, it is caused by various external and internal factors. External reasons are general economic ones; internal - specific to the enterprise.

Among the internal reasons, the bulk is caused by a management crisis, that is, despite their form, the problems are caused by unsuccessful leadership. Hence, one of the measures for pre-trial and bankruptcy rehabilitation is the selection of an arbitration manager.

Thus, internal negative factors include those depending on management competence and cash flow efficiency:

poor financial strategy;
inefficient use of means of production;
weak analytics and marketing;
lack of flexible solutions;
overloaded enterprise structure;
lack of current assets;
stagnation of economic assets;
overstocking when demand is low;
low-quality products;
outdated technical means.

Of particular note is the debt factor, when a company has more borrowed funds than its own, but manages them incorrectly.

The debt load is confusing cash flow especially strongly, which is why competent managers do not recommend direct lending during a crisis.

External causes of insolvency exist regardless of the wishes of management, but are restrained by the right decisions:

world financial crisis;
hyperinflation;
crime situation;
loss of public interest;
strong international competition;
unstable political situation.

All this can lead to problems with obtaining net cash profit and difficulty in settlements with creditors in the end. At the same time, the company may have deferred receivables and illiquid assets, which will still help pay off.

Criteria and scope of bankruptcy

From general concept insolvency (bankruptcy) in Art. 2 N 127-FZ, we can derive the main criteria for making a debtor bankrupt:

Official recognition of insolvency arbitration court;
Debtor's inability pay government contributions;
Loss of ability to fulfill obligations to creditors;
Non-payment to employees wages and benefits.

However, basic criteria are not enough, otherwise any entity with debt would be declared bankrupt immediately.

Special ones are contained in the same law, but in articles 3, 6, 33, as well as paragraph 3. These are criteria for the time and amount of debt.

The time criterion has a dual nature. Cases with debts over 3 months are accepted for processing. After acceptance, the court, in the absence of special requirements, gives time to restore the enterprise. The rehabilitation period can last up to two years.

Also installed minimum size debts to begin bankruptcy proceedings:

300 thousand rubles- in relation to legal entities;
500 thousand rubles- for individuals and farms.

Individuals also have their own special criterion - property. They are liable with all their property, and for this reason the law establishes that bankruptcy is possible if the debt exceeds the value of the debtor's property.

The rehabilitation period can last up to two years.

The law establishes reasonable limits of liability. For enterprises, liability always lies within the scope of the company's property. Citizens are not deprived of their only housing, land, basic necessities, pets and professional tools.

Bankruptcy Institute

The institution of bankruptcy should be understood as a range of measures, criteria and conditions for the implementation of procedures aimed at reorganizing the economy of a particular company in order to fulfill civil obligations and improving the situation in the country.

The institution of bankruptcy was developed not only to help the debtor and creditors, but also to improve the market situation by excluding unprofitable enterprises from relations.

Bankruptcy protects all parties involved in the relationship, including:

Creditors— allowing the return of lost profits and facilitating the implementation of obligations in their favor.
Debtors— saving from unreasonable or unreasonable demands and fixing the legitimacy of procedures.
State— countering schemes of unjust enrichment.

The ultimate goal is to eliminate ineffective organizations, allocate funds more appropriately, and rescue firms with productive potential.

Managers are faced with the task of competently using available resources to improve the situation at the enterprise.

At different levels, the institution of bankruptcy has its own value:

at the state— stabilizes the economy, excluding companies from circulation that have a detrimental effect on it;
at the industry— protects the interests and integrity of the industry along with antimonopoly control;
locally— protects the rights of the debtor, creditor, labor collective, and injured other persons.

The insolvency of subjects massively affects market relations and trust in them, and therefore is controlled at the highest level.

Procedures and costs

Legal bankruptcy involves not only the public declaration of the debtor as insolvent, but also mandatory actions on the distribution of its capital.

Such actions are divided into:
economically revitalizing enterprises;

reorganizing and liquidating the facility.

In accordance with the procedure N 127-FZ “On Bankruptcy”, first the court and creditors must try to help the company recover. Usually only in this case is it possible to fully satisfy the claims against the debtor.

The so-called rehabilitation procedures are carried out in different directions and with varying degrees of intervention by the court and creditors. They also come with their own costs.

The law provides for the suspension of procedures in cases where the debtor cannot pay for the activities of the arbitration manager. Then it is the turn of the liquidation commission, which receives its rewards from the distribution of funds from the debtor’s company.
An exception to the bankruptcy procedure may be the debtor's application for immediate liquidation if there is sufficient capital to fully pay off the obligations.

So, when selling all the property, the debt is paid in full, and the procedure is simplified.

Reorganization of enterprises in case of bankruptcy The concept of insolvency (bankruptcy) according to established order

includes a set of measures to save the company. This is done under judicial and creditor control. If the debtor does not indicate immediate liquidation in the application, then the procedure begins with reorganization.

By rehabilitation, the bankruptcy law means measures taken by creditors, founders, owners and other persons to prevent actual bankruptcy. It is beneficial for all participants to reorganize the enterprise in such a way that it can continue to operate and pay off all debts.

During the reorganization, the wishes of the council of creditors are taken into account and managers recommended by them can be appointed. Judicial measures can also begin with observation without transferring control to another manager. Among the main rehabilitation measures are:
observation;
financial recovery;
external management;
bankruptcy proceedings;

settlement agreement.

The peculiarity of observation is that this is the shortest measure and, together with the main process, cannot last longer than 7 months. Creditors do not interfere, and the court keeps records of the debtor's actions.

In bankruptcy proceedings, the entire available capital of the enterprise is actually distributed. This is to a lesser extent a sanitization measure, since it marks the end of the process.

The peculiarity of business insolvency is that when the assets of individual companies depreciate, not only their founder owners suffer losses, but also the state economy as a whole.

First, the costs are borne by the debtors in connection with the bankruptcy and its consequences. Then it turns out that the country is calculated because the total mass of assets has decreased along with a catastrophic decline in their prices.

This happens due to the preliminary costs that the owners bear at the stage of the fall of the shares of the future bankrupt:

securities are practically devalued;
stocks finished products sold at prices below cost;
unfinished constructions are sold for next to nothing;
we have to abandon a number of productions, even without mothballing them, so as not to incur even more expenses.

Direct costs of bankruptcy include various kinds payments to accompany the procedure:

government agencies for certificates and extracts;
state duties;
arbitration managers and their teams for their work;
audit firms for services;
liquidation commissions;
legal costs.

In case of bankruptcy, having unpaid debts, the owners continue to suffer even greater losses due to a drop in the value of the property due to the acquired status.

Official insolvency

The advantage of legal recognition of debts as paid is seen in the protection of the interests of not only creditors who fairly take their share, but also in the absence of pressure on forced debtors. Also, the forced exclusion of unprofitable organizations from relations normalizes the country’s economy, thereby protecting the interests of the state.

The bankruptcy institution allows you to control civil contractual relationship from the objective position of the state. The procedure, reasons and criteria for insolvency worked out in the law do not allow the rights of participants to be violated and contribute to the satisfaction of interests.

A simple example of a situation in which a legal entity faces bankruptcy:

The concept itself, although it does not take into account the features of insolvency as separate category, contains the minimum necessary to protect obligations by law.

The procedure for bankruptcy (insolvency) of enterprises is regulated Federal law“On insolvency (bankruptcy).”

Enterprise bankruptcy is the inability of the debtor to satisfy the demands of creditors for monetary obligations and (or) to fulfill the obligation to make mandatory payments, recognized by the arbitration court. Entity is considered insolvent if the relevant obligations are not fulfilled by him within three months from the date on which they must be fulfilled. Bankruptcy cases are considered by an arbitration court if the total claims against debtors amount to at least 100 thousand rubles. For subjects natural monopolies fuel and energy complex, a sign of insolvency is considered to be failure to fulfill obligations within six months, while the total amount of obligations exceeds the book value of the debtor enterprise.

The right to appeal to arbitration court The debtor, creditor or authorized bodies have the right to file an application for declaring a debtor bankrupt. The debtor has the right to apply to the arbitration court in anticipation of bankruptcy if there are circumstances clearly indicating that he will not be able to fulfill his financial obligations. In the event of bankruptcy of the debtor through the fault of its founders (intentional bankruptcy), they may be subject to subsidiary liability for its obligations. The interests of all creditors are represented by a meeting of creditors, in which a representative of the debtor participates.

The authorized bodies have the right to apply to the arbitration court to declare the debtor bankrupt when signs of deliberate bankruptcy are detected or when the debtor has debts on mandatory payments.

When considering a bankruptcy case, the following procedures are provided:

Pre-trial rehabilitation;

Observation;

Financial recovery;

External control;

Bankruptcy proceedings;

Settlement agreement.

Pre-trial rehabilitation is a measure to prevent bankruptcy on the part of the founders of the debtor enterprise. Pre-trial rehabilitation is financial assistance for repaying monetary obligations, provided by owners, creditors, as well as from budget funds at the appropriate levels. When paying off debts in in full the bankruptcy case of the enterprise is terminated.

Observation is introduced from the moment the arbitration court accepts an application for declaring the debtor bankrupt and is applied for the purpose of preparing measures aimed either at improving the enterprise or at its liquidation. In this case, the arbitration court appoints temporary manager, whose functions include: ensuring the safety of the debtor’s property; conducting financial analysis; identification of all creditors; determining the presence of signs of fictitious and deliberate bankruptcy; convening the first meeting of creditors.

In the fuel and energy complex, the manager does not have the right to refuse to fulfill by the debtor organization the supply agreement concluded with consumers both in Russia and abroad.

The introduction of surveillance is not a reason for the removal of the debtor's manager. However, he can only carry out transactions related to the disposal of property, receipt and issuance of loans (credits) with the consent of the temporary manager. Controls has no right to make decisions: reorganization and liquidation of the debtor; on the creation of legal entities or on participation in other legal entities; on the creation of branches and representative offices; on the payment of dividends; on the placement of bonds and other issue valuable papers; on the withdrawal of a debtor-legal entity from the membership of the enterprise.

An analysis of the debtor's financial condition is carried out in order to determine the adequacy of the property to cover legal costs, the costs of payment to the arbitration managers, as well as the possibility or impossibility of restoring the debtor's solvency.

The interim manager determines the date of the first meeting of creditors. This meeting makes one of the following decisions:

On the introduction of financial recovery (at the request of the founders);

On the introduction of external management;

On applying to the arbitration court to declare the debtor bankrupt and to open bankruptcy proceedings;

On concluding a settlement agreement (in this case, the bankruptcy procedure is terminated).

From the moment of approval by the arbitration court decision taken monitoring of creditors' meetings is terminated. The interim manager continues to perform his duties until another arbitration manager is appointed (depending on the procedure being started).

During supervision, the debtor, based on the decision of its founders, has the right to apply to the first meeting of creditors with a request to introduce financial recovery with the relevant documents attached (financial recovery plan). Financial recovery is introduced by the arbitration court based on the decision of the meeting of creditors. At the same time the following are approved:

Administrative manager overseeing the progress of financial recovery;

Terms of financial recovery (which cannot be more than two years);

Debt repayment schedule;

Persons providing security for payment of debts, its size and method (pledge, mortgage, bank guarantee, state or municipal guarantee, surety, etc.).

Based on the results of financial recovery, the arbitration court has the right to introduce external management if a real possibility of restoring the debtor’s solvency is established or there is a petition from a meeting of creditors. The total period of financial recovery and external management in this case cannot exceed two years.

External control may be introduced on the basis of a decision of a meeting of creditors without applying a financial rehabilitation procedure in order to restore the solvency of the debtor, if such a possibility was identified during the monitoring procedure by the temporary manager. In this case, the head of the debtor enterprise is removed from office, and a moratorium is introduced on satisfying creditors’ claims for monetary obligations that existed at the time of the introduction of external management.

The arbitration court appoints external manager , whose candidacy is nominated by the meeting of creditors. The external manager has the right to independently dispose of property, enter into a settlement agreement on behalf of the debtor, and declare a refusal to fulfill the debtor’s contracts. The external manager is obliged to develop and submit for approval to the meeting of creditors within a month an external management plan, which provides for measures to restore the debtor’s solvency.

Measures to restore solvency may be: repurposing of production; closure of unprofitable industries; liquidation accounts receivable; sale of part of the debtor's property; assignment of rights of claim of the debtor; fulfillment of the debtor's obligations by the owner of the property unitary enterprise or a third party; sale of the debtor’s enterprise (business), etc.

The sale of an enterprise is carried out through open tenders. The external manager acts as an organizer of trading or attracts specialized organization. In the fuel and energy complex, property is sold at competitive auctions, where it is offered as a single lot.

After the external management plan is approved by the meeting of creditors, the external manager manages the implementation of the plan. No later than 15 days before the expiration of the established period of external management (which cannot be more than 18 months), the external manager submits a report to the meeting of creditors and makes one of the following proposals:

On termination of external management in connection with the restoration of solvency (in this case, the bankruptcy procedure is terminated);

On the extension of the established period of external management (it can be extended for a period of no more than 6 months, in the fuel and energy complex - up to 5 years at the request of the authorities state power);

On concluding a settlement agreement;

On termination of external management and on applying to the arbitration court with a petition to declare the debtor bankrupt.

If there is a petition from the meeting of creditors to declare the debtor bankrupt, as well as in the event of the arbitration court’s refusal to approve the report of the external manager or failure to submit the said report to fixed time the arbitration court may decide to declare the debtor bankrupt and to open bankruptcy proceedings . The arbitration court appoints a bankruptcy trustee who is responsible for implementing procedures related to the liquidation of the debtor:

Carry out inventory and assessment of the debtor's property;

Engaged in the sale of this property;

Notifies the debtor's employees of the upcoming dismissal;

Makes payments to creditors, etc.

After an inventory and assessment of the debtor's property, the bankruptcy trustee begins to sell this property at open auction. Settlements with creditors are carried out in the order of priority provided for in accordance with the liquidation procedure, but out of turn, legal costs and expenses for remuneration of the bankruptcy trustee are covered. The requirements of each queue are satisfied after the requirements of the previous queue are fully satisfied. If the debtor's funds are insufficient, they are distributed among the creditors of the corresponding priority in proportion to the amount of claims. Claims of creditors not satisfied due to the insufficiency of the debtor's property are considered extinguished.

After completing settlements with creditors, the bankruptcy trustee is obliged to submit to the arbitration court a report on the results of the bankruptcy proceedings. After reviewing the report, the arbitration court issues a ruling on the completion of bankruptcy proceedings. This ruling of the arbitration court is the basis for inclusion in a single State Register records of the liquidation of the debtor. From this moment, the powers of the bankruptcy trustee are terminated, the bankruptcy proceedings are considered completed, and the debtor is considered liquidated.

At any stage of consideration of a bankruptcy case by an arbitration court, the debtor and creditors have the right to conclude settlement agreement . The settlement agreement is writing and contains provisions on the amount, procedure and timing of the fulfillment of the debtor’s obligations and (or) on the termination of the debtor’s obligations by providing compensation, novation of an obligation, debt forgiveness or other means. A settlement agreement can be concluded after the debt has been repaid according to the claims of the first and second priority creditors. The settlement agreement is approved by the arbitration court, which issues a ruling to terminate bankruptcy.

The activities of business entities are inevitably associated with financial risks and periods of crisis. And often, in order to objectively assess risks and quickly stabilize the enterprise’s economy, owners resort to bankruptcy proceedings.

What is bankruptcy, what are its signs, and what problems are bankruptcy procedures designed to solve? Let's try to figure this out in our article.

Bankruptcy: concept and signs

Legislative regulator

The concept, characteristics, as well as the bankruptcy procedure are regulated by the Federal Law “On Insolvency (Bankruptcy)” No. 127-FZ of October 26, 2002 (as amended on July 1, 2018). The basic concepts related to bankruptcy are established by the provisions of Article 2 of the above law.

In addition, in matters of practical application of bankruptcy law, one should take into account Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation dated December 15, 2004 No. 29.

Bankruptcy: concept, signs, procedures

Bankruptcy is a fact established and recorded by the arbitration court of the debtor’s inability to fully satisfy legal requirements creditors for monetary obligations, for the payment of salaries and severance benefits to employees, for the fulfillment of obligations to pay mandatory payments (taxes, fees, etc.).

The bankruptcy procedure includes a set of measures carried out in relation to the debtor and aimed at:

for an objective assessment of its production and economic activities and financial position;
to confirm the fact of insolvency (bankruptcy);
to determine measures to improve the economic situation of the debtor;
to fulfill financial obligations to each of the creditors, the budget and extra-budgetary funds.

Signs of bankruptcy

The arbitration court makes a decision to declare the debtor bankrupt, provided that there are signs of bankruptcy, established by law No. 127-FZ. These include:

existence of claims against the debtor in the total amount:

for a citizen (including individual entrepreneurs) – at least 500,000 rubles,
for legal entities – from 300,000 rubles;

the debtor's inability to satisfy in full the financial claims of creditors within three months;
a documented fact that the amount of obligations assumed by the debtor exceeds the value of the property owned by him.

According to the provisions of the law, the court can declare bankrupt both legal and individual. Bankruptcy cannot be established in relation to:

government institutions and enterprises;
religious organizations;
political parties.

Types of bankruptcy

Depending on the type of debtor, the law distinguishes between bankruptcy of legal entities, bankruptcy of individual entrepreneurs and bankruptcy of individuals who are not individual entrepreneurs (Article 2 of Law No. 127-FZ).

In addition, in accordance with the characteristic features, the following types of bankruptcy can be distinguished:

Real - characterized by the actual inability of the debtor to repay his debts and restore solvency. Often the end result of such bankruptcy is the liquidation of the debtor enterprise.

Temporary (conditional) - also characterized by the insolvency of the debtor, but debts can be repaid using existing assets (as a rule, with anti-crisis management, this type of bankruptcy does not lead to liquidation).

Intentional (intentional) – characterized by the deliberate creation by the debtor (manager, individual entrepreneur) of a situation in which a state of insolvency arises.

Fictitious - characterized by a false declaration by the debtor of his financial insolvency, the purpose of which is to mislead creditors, obtain from lenders benefits for repaying financial obligations, or repaying loan obligations with uncompetitive products.

Intentional and fictitious bankruptcy entails administrative punishment according to Art. 14.12 of the Code of Administrative Offenses of the Russian Federation (fine or disqualification), and if there is major damage - criminal under Art. 196, 197 of the Criminal Code of the Russian Federation (from a fine to imprisonment).

Bankruptcy procedure and stages of its implementation

The bankruptcy procedure consists of several stages:

Observation (Articles 62-75 of Law No. 127-FZ):

the monitoring procedure is carried out by an arbitration manager appointed by a court decision, who carries out general management, interacts with creditors and is responsible for the safety of the debtor’s property,
from the moment the monitoring procedure begins, operations to collect all types of obligations and dividend payments from the debtor are suspended,
At this stage, the arbitration manager conducts an analysis and gives a comprehensive assessment of the debtor’s activities, and the first meeting of creditors is held.

Financial recovery (Article 76-92 of Law No. 127-FZ):

the decision to carry out this stage in the bankruptcy procedure is made by the court in cases where the debtor has the resources to restore solvency,
at this stage, the debtor is completely removed from the powers to manage the business, and his functions are assumed by the arbitration manager,
the stage of financial recovery involves attracting external financial flows, and provides for the temporary cancellation of payments on obligations, strengthening measures to ensure the safety of the debtor’s property, implementation of measures for financial stabilization and agreement with creditors on the results of their implementation.

External management (Article 93-123 of Law No. 127-FZ):

is a continuation of the stage of financial recovery,
introduced separate decision of the court, is carried out by an appointed external manager,
involves carrying out such activities as disposing of assets on behalf of the debtor, concluding and terminating contractual obligations, providing reports to the meeting of creditors, etc.,
The duration of external management is determined by the court and is calculated in conjunction with the duration of the financial recovery stage. The total duration of these stages cannot exceed 24 months.

Bankruptcy proceedings (Article 124-149 of Law No. 127-FZ):

the stage of satisfying the financial claims of creditors by putting the debtor’s liquid assets up for public auction,
From the funds received from the liquidation of assets, the debtor's obligations are repaid according to the priority established by the rules of the bankruptcy law. The law establishes the following order:

extraordinary debts – legal costs, repayment of current general business expenses, payment for the services of an arbitration manager, etc.,
debts of the 1st stage - compensation for causing harm to life and health of individuals,
debts of the 2nd stage - staff wages, severance pay, royalties,
3rd priority debts are obligations to other creditors.

Settlement agreement (Article 150-167 of Law No. 127-FZ):

this stage is the final stage in the bankruptcy procedure and can occur either after passing through all its stages or be introduced at any time during the procedure,
introduced upon reaching agreements on financial obligations, by signing a settlement agreement, which must contain information about agreements between the debtor and creditors, restructuring of debt obligations, their write-off or repayment terms.

Topic 15. Bankruptcy

Questions:

1. The concept of insolvency (bankruptcy).

2. Signs of bankruptcy and measures to prevent it.

3. Bankruptcy procedures and their consequences.

The concept of insolvency (bankruptcy)

In science there is still no unambiguous understanding of the etymology of the word “bankruptcy”. According to the compilers of a 4-volume dictionary of the Russian language, the word “bankruptcy” comes from the French “banqueroute” (translated as bankruptcy). But most researchers believe that the etymological basis of the word “bankruptcy” dates back to the 16th century and comes from the Italian “banca rotta”, which translated into Russian means “broken table”. According to historical data, merchant creditors broke the tables of insolvent money changers who were engaged in transactions in the markets of the cities of the republics of medieval Italy.

Insolvency (bankruptcy)- this is the inability of the debtor, recognized by the arbitration court, to fully satisfy the claims of creditors for monetary obligations and (or) to fulfill the obligation to make mandatory payments. That is bankruptcy- This is insolvency recognized by the arbitration court.

At the same time, under insolvency one should understand the poor financial condition of the enterprise, characterized by its insolvency for its obligations. Insolvency– termination of the debtor’s fulfillment of part of the monetary obligations or obligations to pay mandatory payments caused by insufficient funds. In this case, insufficient funds are assumed unless proven otherwise.

Debtor– a citizen, including an individual entrepreneur, or a legal entity who is unable to satisfy the claims of creditors for monetary obligations and (or) fulfill the obligation to make mandatory payments within the period established by federal law.

Monetary obligation- the debtor's obligation to pay the creditor a certain amount sum of money under a civil law transaction and (or) other provided Civil Code Russian Federation, budget legislation Russian Federation basis.

Sanitation– measures taken by the owner of the property of the debtor - a unitary enterprise, the founders (participants) of the debtor, the creditors of the debtor and other persons in order to prevent bankruptcy and restore the solvency of the debtor, including at any stage of consideration of the bankruptcy case.

Observation- a procedure applied to a debtor in a bankruptcy case in order to ensure the safety of his property, conduct an analysis of the debtor’s financial condition, compile a register of creditors’ claims and hold the first meeting of creditors.

Financial recovery- a procedure applied in a bankruptcy case to the debtor in order to restore his solvency and repay the debt in accordance with the debt repayment schedule.

External control- a procedure applied to a debtor in a bankruptcy case in order to restore his solvency.

Bankruptcy proceedings– a procedure applied to a debtor in a bankruptcy case, declared bankrupt, in order to adequately satisfy the claims of creditors.

Settlement agreement- a procedure applied in a bankruptcy case at any stage of its consideration in order to terminate bankruptcy proceedings by reaching an agreement between the debtor and creditors.

Arbitration manager– a citizen of the Russian Federation who is a member self-regulatory organization arbitration managers.

Interim manager– an arbitration manager approved by the arbitration court to conduct supervision in accordance with federal law.

Administrative Manager– an arbitration manager approved by the arbitration court to carry out financial rehabilitation in accordance with this Federal Law.

External manager- an arbitration manager approved by the arbitration court to conduct external management and exercise other powers established by this Federal Law.

Competition manager– an arbitration manager approved by the arbitration court to conduct bankruptcy proceedings and exercise other powers established by this Federal Law.

Moratorium– suspension of the debtor’s fulfillment of monetary obligations and payment of mandatory payments.

2. Signs of bankruptcy:

1) A citizen may be declared bankrupt if two conditions are simultaneously met:

If the relevant obligations and (or) obligations are not fulfilled by him within three months from the date on which they should have been fulfilled;

If the amount of his obligations exceeds the value of his property.

2) A legal entity may be declared bankrupt if the relevant obligations and (or) obligations are not fulfilled by it within three months from the date on which they should have been fulfilled.

The following have the right to apply to an arbitration court to declare a debtor bankrupt:

1) debtor;

2) bankruptcy creditor. Creditors– persons who have rights of claim against the debtor for monetary obligations and other obligations, for the payment of obligatory payments, for the payment of severance pay and for the payment of wages to persons working under employment contract. Bankruptcy creditors– creditor for monetary obligations (with the exception of authorized bodies, citizens to whom the debtor is liable for causing harm to life or health, moral damage, has obligations to pay remuneration to the authors of the results intellectual activity, as well as the founders (participants) of the debtor for obligations arising from such participation);

3) authorized bodies – federal body executive power, authorized by the Government of the Russian Federation to represent in a bankruptcy case and in the procedures applied in a bankruptcy case, claims for the payment of mandatory payments and claims of the Russian Federation for monetary obligations ( Federal tax service ), as well as executive authorities of the constituent entities of the Russian Federation, authorities local government, authorized to represent in a bankruptcy case and in the procedures applied in a bankruptcy case, claims for monetary obligations of the constituent entities of the Russian Federation and municipalities, respectively.

The exclusive competence of the meeting of creditors includes making decisions:

on the introduction of financial recovery, external management and on changing the deadline for their implementation, on filing a corresponding petition with the arbitration court;

on approval and amendment of the external management plan;

on approval of the financial recovery plan and debt repayment schedule;

about approval additional requirements to candidates for an administrative manager, external manager, bankruptcy trustee;

on the selection of an arbitration manager or a self-regulatory organization, from whose members the arbitration court approves the arbitration manager;

on establishing the amount and procedure for paying additional remuneration to the arbitration manager;

on increasing the size of the fixed amount of remuneration of the arbitration manager;

on the selection of a registrar from among registrar holders accredited by a self-regulatory organization;

on concluding a settlement agreement;

on applying to the arbitration court to declare the debtor bankrupt and to open bankruptcy proceedings;

on the formation of the creditors’ committee, on determining its quantitative composition, on the election of members of the creditors’ committee and on early termination powers of the creditors' committee;

on the assignment to the competence of the committee of creditors of issues, decisions on which, in accordance with this Federal Law, are made by the meeting of creditors or the committee of creditors, with the exception of issues that, in accordance with this article, are referred to the exclusive competence of the meeting of creditors;

on the election of a representative of the meeting of creditors.

These issues cannot be transferred for resolution to other persons or bodies.

bankruptcy creditor, authorized body have at the meeting of creditors a number of votes proportional to the size of their claims to the total amount of claims for monetary obligations and for the payment of obligatory payments included in the register of creditors' claims on the date of the meeting of creditors.

The register of creditors' claims is maintained by the arbitration manager or registrar.

To carry out the functions assigned to it, the Committee of Creditors has the right to:

require the insolvency administrator or the debtor’s manager to provide information about financial condition the debtor and the course of procedures applied in the bankruptcy case;

appeal to the arbitration court the actions of the arbitration manager;

make decisions on convening a meeting of creditors;

make decisions to address the meeting of creditors with a recommendation to remove the insolvency practitioner from performing his duties;

make different decisions.

The self-regulatory organization of arbitration managers establishes the following prerequisites membership in this organization:

availability of higher education vocational education;

having work experience in management positions for at least a year and an internship as an assistant to an arbitration manager in a bankruptcy case for at least six months or an internship as an assistant to an arbitration manager in a bankruptcy case for at least two years, unless longer periods are provided for by the standards and rules professional activity arbitration managers approved by a self-regulatory organization (hereinafter referred to as standards and rules of professional activity);

passing a theoretical exam in the training program for arbitration managers;

no punishment in the form of disqualification for committing administrative offense or in the form of deprivation of the right to hold certain positions or engage in certain activities for committing a crime;

no criminal record for committing an intentional crime.

The conditions for membership in a self-regulatory organization of insolvency practitioners are also that the member of the self-regulatory organization has an agreement compulsory insurance liability, payment by a member of a self-regulatory organization of the contributions established by it, including contributions to the compensation fund of the self-regulatory organization.

Measures to prevent bankruptcy:

1) Notification by the head of the debtor of his founders of the presence of signs of bankruptcy.

2) Sanitation. For example, the debtor may be provided with financial assistance in an amount sufficient to pay off monetary obligations and mandatory payments and restore his solvency (for example, the Kolpashevsky State Farm). The provision of financial assistance may be accompanied by the assumption by the debtor or other persons of obligations in favor of the persons who provided the financial assistance.