Formation and development of market economyis accompanied by various, sometimes contradictory, processes that take place within the framework of the current legislation. As practice shows, bankruptcy of legal entities occurs for various reasons. In general, this procedure is regulated by a special Law "On Insolvency (Bankruptcy)". In its original form, this law was intended to ensure a more rapid transfusion of capital into those areas of activity that are developing more dynamically.
To do this, you need to remove the enterprise from the market,who are not able to fulfill their obligations in the required amount. So that they, so to speak, did not interfere with stronger partners to supply relevant goods and services to the market. Weak management and inaccurate actions in the conduct of business can lead any enterprise into a deplorable state. I must say that this is not a legal term. The bankruptcy of legal entities as a mechanism is included under quite specific circumstances. If the company is barely making ends meet, this is not an excuse for launching it.
However, in the case wherea certain period of time an enterprise can not fulfill its obligations, one of the interested persons may demand its liquidation. Such a person can be a state. This becomes possible when taxes and mandatory payments to public funds are not made for three months or more. For example, a pension fund can initiate this process. Bankruptcy of legal entities is possible only upon the decision of the arbitration court. It is to this court that an appropriate statement should be sent.
Often happens and so that the company is not able toto pay off with suppliers of raw materials and components. In this case, the mechanism for initiating an insolvency or bankruptcy case looks similar. The interested person applies to the arbitration court, which can make an appropriate decision. And this decision may not be what the plaintiff would like to receive. After the court has reviewed the application, an observation procedure is introduced at the enterprise. The court supervises the situation at the enterprise.
Practice shows that very often enterprisesin this state has debts for which you can still pay off. But if the external situation does not improve the situation, then the decision of the same court appoints a bankruptcy administrator. His job is to meet the demands of creditors. He organizes the valuation and sale of the property of the enterprise in order to pay off the received funds with all creditors. Of course, such liquidation with debts does not allow to fully satisfy the claims of creditors.
The fact is that all the property that you cansell, and the balance of funds in the accounts is never enough to close all the obligations of the enterprise. Qualitatively the same situation takes place when the IP is liquidated with debts. There are many concrete examples. The entrepreneur takes a big credit and buys fashionable headgear for this money. However, in a short time the fashion changes, and consumers stop buying these gowns. Everything, such goods can not be sold even at the purchase price.
Well, if the bankruptcy manager succeedsto get 10% of the cost for them. Means, and creditors will receive about the same share from the requirements. Thus, the bankruptcy of legal entities or individual entrepreneurs does not always allow creditors to return their financial assets. It follows from this that it is necessary to issue loans more accurately and taking into account the solvency of the borrower's company.