There are several ways to cancel bankruptcy if there is a corresponding case pending in the arbitration court. Some of them are related to the satisfaction of creditors' claims, others - with the refusal of such claims or the conclusion of an amicable agreement.
The grounds for termination of the court case in the presence of signs of the debtor's bankruptcy are reflected in the law “On insolvency (bankruptcy)”. The specified normative act provides for several ways to revoke bankruptcy, each of which has its own characteristics. So, at the stages of financial recovery or external management, the debtor's solvency can be fully restored, which actually means the absence of debts to creditors, a positive balance of the enterprise with continued activities.
In these cases, the law directly orders the arbitration court to terminate the bankruptcy case. Even if the debtor's solvency has not been fully restored, but the claims of all creditors who filed for the arbitration court have been satisfied, the bankruptcy will be canceled.
Grounds for cancellation of bankruptcy when interacting with creditors
If the debtor is able to independently agree with the creditors before declaring him bankrupt, the arbitration court will also terminate the proceedings. The agreement must be expressed in an amicable agreement, which is submitted for approval to the court. It should be borne in mind that the chances of concluding an amicable agreement are minimal, since when filing a bankruptcy petition in court, all other ways to settle the debt are usually exhausted. That is why creditors are extremely reluctant to make any concessions, including concluding an amicable agreement with the debtor. Nevertheless, the existence of such an agreement also obliges the arbitration court to cancel the bankruptcy of the debtor if the presented settlement agreement was drawn up without violating the law, someone's rights.
Other grounds for cancellation of bankruptcy
Sometimes the debtor himself files for bankruptcy in the absence of factual grounds for declaring him insolvent. If the arbitration court has initiated such a case, but there are no creditors at the monitoring stage, then the bankruptcy claim is declared unfounded, and the case is terminated in court.
Finally, the last reason for canceling the recognition of the debtor as insolvent is the lack of sufficient funds to be used to reimburse legal costs. The main part of these expenses is the payment of remuneration to the bankruptcy commissioner.
