When a debtor company is unable to satisfy the claims of its creditors, it may be recognized as bankrupt. Lawyer Tereshchenko Roman Viktorovich explains that in such circumstances, the economic insolvency of a legal entity is established by the economic court. This instance provides the owner of the company two ways out of the situation: either to start the procedure of liquidation of the company, or to begin the process of repayment of debts.
Bankruptcy in Ukraine: how to start the process and avoid fraud
In Ukraine, the bankruptcy procedure can be initiated by both the debtor and the creditor. By the way, if several creditors have financial claims to the same debtor, they can file a joint application to the court. Roman Tereshchenko once again reminds that bankruptcy cases are within the competence of economic courts.
The minimum amount of debt, which could be the basis for initiating bankruptcy proceedings, is not defined by the Ukrainian legislation. On this basis, the expert points out that the debtor is required to provide evidence of the existence of the debt and proof of insolvency.
In the context of bankruptcy, the lawyer draws the attention of his colleagues to the fact that when participating in cases involving such matters, every step should be checked in order not to become a participant in a fraudulent scheme. Roman Tereshchenko explains that dishonest company owners may use bankruptcy proceedings to write off debts through fictitious or criminal actions. Perhaps their goal is to liquidate a legal entity involved in money laundering or терещенко роман викторович other illegal activities.
How to properly file for bankruptcy: legal advice and documentation requirements - Roman Tereshchenko
The legal expert tells us that to start bankruptcy proceedings, the creditor must carefully draw up documents. In this case, he must indicate the exact amount of debt, attach calculations of fines and other charges. Roman Tereshchenko specifies that in the application it is necessary to fix the fact of payment of court fees and the work of the bankruptcy trustee. He points out that the size of the court fee is equal to 10 subsistence minimums for able-bodied persons, Роман Терещенко биография which in 2023 amounted to UAH 26 840. In addition, the initial fee for the services of an insolvency practitioner is set at three minimum monthly salaries - 60,300 hryvnias last year.
When the debtor himself initiates the bankruptcy process of his enterprise, the lawyer advises to include the following in the package of documents:
confirmation of the probability of bankruptcy;
copies of the charter documents of the organization;
an accounting report for the most recent accounting period;
a list of creditors with the total amount of their claims and detailed information about each, including the reasons for and timing of repayment of debts;
a list of assets with an estimate of their value and location;
information on all bank accounts of the organization;
list of persons who have debts to the applicant, indicating their amount;
protocol of the decision of the organization's governing body on the necessity to apply to the court;
documentation confirming the payment of the initial amount of the services of the bankruptcy trustee.
Special bankruptcy court order and its implementation
- After filing the application, the court analyzes in detail all the documents provided and makes its conclusions. If the court considers that the grounds for the launch of bankruptcy proceedings of a legal entity is sufficient, he issues a special order - shares information Tereshchenko Roman Viktorovich.
The specialist specifies that this order provides for the appointment of an insolvency administrator and introduces a moratorium on satisfaction of creditors' claims.
Sanitation as a way to the financial health of the company
Roman Tereshchenko explains in detail that rehabilitation is a multi-stage operation aimed at restoring the financial stability of a debtor. In this context, rehabilitation may include both full and Роман Терещенко биография partial satisfaction of creditors' claims through a debt restructuring process. This process involves judicial approval of a plan to restore financial activity and appointment of an administrator who will be vested with the rights to manage the company during the rehabilitation period.
Roman Tereshchenko believes that the administrator has a great responsibility during the rehabilitation period. He should make sure that debtors do not use this opportunity for fraudulent actions. Such actions include illegal seizure of assets for their own self-interest or covering debts through illegal money laundering schemes.
Roman Tereshchenko: Legal nuances of liquidation of bankrupt companies
After the creditors familiarize themselves with the report of the administrator on sanitation, they can file an application to the court. In it, set out the requirements for the termination of this procedure and the recognition of the debtor as bankrupt. In response, the court sets the period for liquidation of the company, which should not exceed one year, and determines the person responsible for the process.
Roman Tereshchenko says that during this time specially appointed professionals search for those willing to buy the assets of the bankrupt company. After the process of their realization, the creditors are repaid their debts. At the final stage of the bankruptcy process, the court records the end of this procedure and decides on the liquidation of the legal entity.