Bankruptcy is the inability of the debtor to fully satisfy the claims of creditors (recognized by an arbitration court or as a result of an out-of-court bankruptcy procedure). For the debtor, bankruptcy is a way to get rid of debts, postpone the payment of fines, penalties and penalties.
For creditors, it is an opportunity to get at least something from him on account of the debt. Among the main reasons for bankruptcy, lawyers name: – unforeseen life circumstances: illness, emergency, political instability, etc.; – negligence: inefficient work of the organization or financial illiteracy of a citizen. Also, bankruptcy can be deliberate. They go to it so as not to pay debts. Deliberate bankruptcy in Russia is a crime that carries a penalty of up to 7 years in prison and a large fine. An example of use on the “Secret” _”There is no point in withdrawing assets and changing the director. If bankruptcy proceedings are introduced against the company, transactions made over the past three years may be invalidated. _ (Lawyer Emil Khalimov – about what mistakes should not be made in bankruptcy). Procedure A bankruptcy petition can be filed by the company itself or by a citizen, creditors or government agencies (for example, tax).
The arbitration court determines the financial condition of a potential bankrupt and the number of creditors, studies the possibility of restructuring debts, finds out whether it is possible to repay loans with the funds available to the debtor. If it is impossible, then all debts of the bankrupt are written off, and his property is sold so that creditors return at least something. Since September 2020, a simplified bankruptcy procedure has been launched, thanks to which any person who has accumulated debts from 50,000 to 500,000 rubles has the right to declare himself insolvent.
This bankruptcy procedure is carried out without the participation of the court and the financial manager, but only if certain conditions are met. To start an out-of-court bankruptcy procedure, a citizen must apply to the MFC at the place of residence, fill out an application form for out-of-court bankruptcy and provide a list of his creditors. Fact: Translated from Italian, the term “bankruptcy” means “broken bench”. Centuries ago in ancient Rome, usurer transactions were made on special benches. They were called banks. If the merchant went bankrupt, a bench was knocked out from under him. It was a symbol that he was ceasing his activities. His debts were not forgiven and expelled from the community of merchants.
credit: rambler