Bankruptcy proceedings must be implemented in several successive stages. Each action has its purpose and features. The last stage is considered bankruptcy proceedings, involving the sale of all property belonging to the debtor. The main goal of this process is to receive money after bidding. Funds are directed to creditors to pay off debt. Before applying this method, other procedures must be performed aimed at studying the financial condition and restoring the solvency of the company or individual.
Process purpose
The main goal of the entire bankruptcy process is debt repayment. Bankruptcy proceedings involve the application of all values belonging to the debtor. They are sold through special tenders, which makes it possible to repay debts to creditors included in the corresponding register.
Other process tasks include the following:
- upon its completion, the company is liquidated;
- a search is made for all property belonging to the debtor;
- the accumulation of all identified values in the general bankruptcy estate;
- property for sale, which allows you to pay off debts.
Thus, this stage solves many problems.
Grounds for
This procedure is carried out solely on the basis of a court decision. Therefore, the approval of the judge is required to initiate her start. Previously, he examines all the documents of the company to find out if there is an opportunity to restore solvency. If it is impossible to improve the financial condition of the company by reorganization or other methods, a decision is made to sell the property of the debtor.
The court decision must additionally contain information that the company is declared insolvent. A manager is appointed to handle the sale of existing property. The dates within which the procedure should be carried out are indicated. The consequences of bankruptcy proceedings are given. Such a court decision is certainly published in open sources.
Process steps
Before the direct sale of the debtor's property, other processes must be carried out aimed at restoring its solvency. If, after studying his financial condition, it becomes clear that he will not be able to cope with his own debts, then the sale of values begins. The bankruptcy proceedings are divided into successive stages:
- appropriate decision is made by the court;
- a bankruptcy trustee is appointed to sell the property of the debtor;
- an order is drawn up, on the basis of which the manager receives a seal, various material values and company documentation from the business owner, and this process should be carried out within one day after the court makes a decision;
- a notification is sent to the Federal Tax Service containing information that the company has been declared bankrupt;
- information is placed in open print media, which makes it possible to obtain bankruptcy information for all creditors;
- the manager uses various methods to preserve all the property belonging to the company;
- bailiffs are notified of the start of the process, therefore previously imposed arrests are removed from the valuables;
- inquiries are sent to different state bodies in order to obtain the maximum information about the debtor, as well as to identify all property belonging to him;
- within a month, all hired specialists in the company are notified of the planned closure of the company and their dismissal;
- all accounts opened with the bank are closed, except for one, since it will be used for receipt and collection of funds received from the sale of valuables;
- independent appraisers are involved, studying the existing property, which allows you to set the optimal value at the auction;
- an inventory of all values is carried out, and according to the results of this procedure, an inventory is formed;
- analyzes the business activities and documentation of the enterprise;
- all debtors are notified of the bankruptcy of the creditor, so they must promptly return the funds;
- all previously concluded contracts are terminated;
- various measures are being taken to search for and return the property of the company;
- during all these processes, a register of creditors' claims is formed;
- a maximum of six months after the start of the procedure, an official bankruptcy estate is created, which includes all property owned by the company;
- then only a month is given to creditors to review the existing property, after which a plan for the sale of values is created;
- every month reports on the work performed are generated, which are then transferred to creditors;
- an interim report is being made;
- open bidding is held, the main purpose of which is the sale of all property of the debtor;
- the register of claims is closed two months after the publication of information in open sources;
- settlements are made with all creditors on the basis of existing requirements, and all of them must be recorded in the register;
- after the settlement is completed, the bank account is closed;
- at the Federal Tax Service, the taxpayer is deregistered;
- a liquidation balance sheet is formed, after which all company documents are transferred to the archive;
- different certificates are requested from extrabudgetary funds confirming the absence of claims;
- a report on the work performed is submitted to the arbitration court;
- a decision is made by the court, on the basis of which the production stage ends.
Thus, this process is considered complex and lengthy, since it is required to perform quite a lot of different actions.
What does the meeting of creditors do?
If a company is declared insolvent, then a meeting of creditors will be formed. In bankruptcy proceedings, lenders can make various important decisions. At the meetings, various key issues are resolved regarding the debtor. Therefore, different actions can be applied in bankruptcy proceedings by all existing creditors:
- engaging independent appraisers to determine the real value of property owned by the debtor;
- study of the report drawn up by the manager;
- establishment of the order on the basis of which the property of the debtor is sold;
- drawing up a petition, on the basis of which, for various good reasons, it is required to eliminate the appointed manager;
- signing a settlement agreement with the debtor;
- formation of a committee of creditors;
- drawing up a complaint about the actions of the manager in the arbitration court.
All important issues are resolved by voting, but standard actions may be carried out by a designated committee. At the same time, it is important that all these creditors be officially included in the register of bankruptcy proceedings.
How long does the process take?
The duration of the procedure depends on various factors. The standard term for bankruptcy proceedings is six months. If there are good reasons, then on the basis of the request of the participants in the process, this period of time can be extended. The maximum extension is allowed for 6 months.
The decision to extend the procedure is made only by the arbitral tribunal. This is usually required to track down all debtor property. Also affects this period the efficiency of the inventory of values belonging to the debtor in bankruptcy proceedings.
Manager's Responsibilities
By all means, the bankruptcy trustee is appointed by the court, who during the period of this production is engaged in managing the organization. He controls all the property owned by the company. Other duties of a specialist include:
- inventory of available property;
- carrying out an assessment of values, for which an independent organization is usually involved;
- the dismissal of employees of the enterprise with the simultaneous transfer of all due payments to them;
- control of all requirements;
- signing of decisions taken by the meeting of creditors;
- property protection.
Often, debtors in many ways hide their values or even enter into transactions aimed at hiding objects in order not to satisfy requirements in bankruptcy proceedings. Under such conditions, the manager may dispute the transaction. As soon as the process is completed, all documents of the closed company are transferred by the specialist to the archive.
How is property sold?
The main purpose of production is the repayment of company debt. This requires the sale of property belonging to the debtor, for which bankruptcy proceedings are being conducted. Claims of creditors are satisfied after receiving money from the sale of objects at auction.
Such trades are held at specialized electronic trading platforms. Individuals or companies with electronic signatures can participate. This requires a deposit, and these funds will not be returned if the bidding is not won.
The nuances of bidding
Before the direct auction, property is evaluated, on the basis of which the market price of the objects is established. It is she who acts as the starting price. Bidding is conducted to increase, so the participant who offers the highest price wins.
Often it is not possible to sell property through bidding, so the starting price is reduced every week, which leads to lower bidding. If such actions did not lead to the sale of valuables, then they shall be returned to the debtor.
What to do with stocks?
If society closes, the question arises of how to deal with existing shares. They confirm that a particular person can participate in the management of the enterprise.
Shareholders may sell or donate their shares without the consent of other shareholders. At the same time, no restrictions are applied to shareholders, so they usually just sell securities, although it is difficult to find buyers.
The consequences of the procedure
The proceeds from the sale of property are sent to creditors to pay off debts. This is the end of bankruptcy proceedings. The manager sends the court a report on the work done, after which the company is declared insolvent.
The consequences of this procedure include the following:
- no fines or penalties are charged;
- previously completed transactions are canceled, on the basis of which property is sold by the debtor with the help of doubtful contracts;
- discloses information about the financial condition of the company;
- the authority of the top managers of the enterprise is terminated;
- various encumbrances are removed from property.
At the end of the procedure, the company is declared bankrupt.
Conclusion
Thus, bankruptcy proceedings are the final stage of bankruptcy. It involves the valuation and sale of property belonging to the debtor. The process is carried out by the appointed bankruptcy trustee.
Using the funds received, the debts of the enterprise are repaid. After that, it is declared bankrupt by a court decision.