Many people at least occasionally come across information in the press that an organization has ceased to exist. One of the reasons for the closure of the company could be bankruptcy. What is the bankruptcy of a legal entity from different points of view?
Instructions
Step 1
Bankruptcy, otherwise called financial insolvency, is a condition in which a debtor cannot pay money according to his obligations. They can arise not only in front of an individual or an organization, but also in front of the state.
Step 2
Bankruptcy must be confirmed by an official document - a court decision certifying the financial insolvency of the debtor. Those who owe the potential bankrupt, or he himself, if he wants to get rid of debts, must file a lawsuit. In modern Russia, in order to initiate such a process, the payer must maliciously fail to comply with obligations, postponing them for more than three months.
Step 3
What is legal entity bankruptcy? This is a recognition of the company's inability to pay bills and the presence of debt obligations in excess of the authorized capital and all the property of the organization. Such bankruptcy has a number of consequences. The arbitral tribunal must decide what will happen to the organization. If the court recognizes that the company has only temporary difficulties, then the financial recovery procedure will be applied to it. It means that the organization's debts will be restructured, for example, the repayment period can be extended, and new funds can also be attracted. The process is supervised by an administrative administrator appointed by the court. If, as a result, the organization manages to fulfill its obligations, it will return to work as usual.
Step 4
In a different situation, other methods may be applied, for example, the appointment of external control. This happens when the manager is recognized as incapable of leading the enterprise and taking it out of the crisis.
Step 5
In the event that no measures have helped the organization to cope with the problem, then it is liquidated, and all funds in its ownership and the authorized capital are divided between creditors by a court decision.
