What do you need to know before you decide to apply for bankruptcy?
1. Cases of economic insolvency (bankruptcy) of debtors-legal entities and individual entrepreneurs are governed by the rules established by the Economic Procedural Code of the Republic of Belarus (COD), also taking into account the specifics stipulated by the Law of the Republic of Belarus of July 13, 2012 “On economic insolvency (bankruptcy)” (Law on Bankruptcy) and Acts of the President of the Republic of Belarus.
2. The bankruptcy procedure can be carried out by the court as a full procedure (protective period, bankruptcy proceedings with subsequent rehabilitation and/or liquidation)and simplified one.
3. The decision to open liquidation proceedings when conducting bankruptcy proceedings in a simplified procedure (Section VI of the Law on Bankruptcy) shall be rendered by the court:
For the liquidated debtor - within 4 months from the date of commencement of the proceedings on the case, and in case of failure to submit the documents provided by the Law on Bankruptcy to the court, not later than 6months since the opening of the bankruptcy proceedings;
for the absent debtor - within 3months from the day of initiation of proceedings on the case, and in case of failure to submit the documents provided by the Law on Bankruptcy to the court, not later than 5months from the moment of opening of the bankruptcy proceedings.
4. In accordance with the provisions of Article 12 of the Bankruptcy Law, the grounds for filing creditor’s application are the following (applicable only all together):
- the creditor has credible, documented evidence of the insolvency of the debtor that is(or becoming) sustainable;
- even applying compulsory execution the debtor has not performed its obligations within three months, or in the process of compulsory execution the fact that the debtor does not have sufficient property to satisfy the claims made to him is revealed;
- the amount of debts to the creditor who submitted the creditor’s application is one hundred and more base rates. And in case the debtor is a city-forming or equivalent organization, a state organization, a legal entity, whose shares are managed by state bodies or are in economic or operational management of state legal entities, as well as a legal entity or an individual entrepreneur with state and (or) international orders –the amount of debts is two thousand five hundred or more base units.
5. In accordance with the general rule provided in Article64, p.5of the Law on Bankruptcy when a bankruptcy proceeding is instituted, the manager is appointed from the candidates submitted by the person who filed the application for economic insolvency (bankruptcy). Moreover, the consent of the nominated candidates for exercising the powers of the manager in the bankruptcy case must be obtained in advance.
Despite the seeming simplicity of submitting a bankruptcy petition, applicants very often face the problems of accepting an application, searching for managerial candidates, developing a bankruptcy strategy, etc.
Having practical skills in bankruptcy issues, experience and knowledge in the field of competition law, we will help you to successfully cope with the tasks set, return money (property)and, if necessary, to analyze the Debtor’s transactions and determine the perspective of subsidiary liability of persons involved in bringing to bankruptcy or disruption of compensation for losses to creditors.
You can have remarkable theoretical knowledge in the field of competition law and an excellent legal basis ... but believe that without a huge practical experience in bankruptcy you can miss the time dealing with a particular issue, and thereby reduce the chances of recovering the debt.
Our specialists will promptly provide advice and practical assistance in drafting the necessary documents when submitting applications to the judiciary or the manager ...
Do not postpone the resolution of the issue of bankruptcy for tomorrow, trust professionals, and we will work together with the tasks set for the result.
If you decide to liquidate a company (legal entity), you need to know that the liquidation procedure is carried out in accordance with the provisions of the Decree of the President of the Republic of Belarus No. 1 of 16.01.2009 “On State Registration and Liquidation (Termination) of Business Entities” (together with “Regulations on state registration of economic entities”, “Regulations on liquidation (termination of business) of economic entities”).
Working with us you get a reliable partner of a whole team of professionals.
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E-mail: buro24@tut.by