Bankruptcy is the inability of a debtor, who is a legal entity or a sole proprietorship or an individual, declared by the commercial court, to restore their solvency position and satisfy creditors’ claims upheld by a court, without proceeding to the liquidation stage, where debtor’s assets are sold at auction, and the available cash assets and receipts from the sale of assets shall be distributed between the creditors according to the priorities outlined in the law.
Opening the insolvency/bankruptcy proceedings does not necessarily lead to a compulsory liquidation for a Debtor and is often the best or even the only way for a legal entity or an opportunity for its shareholders (founders or members) to restore the solvency of their company and ensure normal business operation. In financial hardship, this option should not be considered as the end, rather as a way out.
For Creditors bankruptcy can be an effective instrument for collecting debt from a debtor. After all, an insolvency practitioner (receiver, administrator, or liquidator) takes steps to find out money resources, assets, receivables due to the debtor, and tracks the cash flows, analyses the agreements (contracts) made by a debtor before the opening of insolvency/bankruptcy proceedings, and ensures their performance or termination, applies to the law enforcement agencies to terminate any unlawful acts on the side of officials, counteragents, etc.
Our specialists can ensure a qualified and professional representation of a debtor or a creditor, i.e. a party whose rights need to be protected, and interests to be considered.
Bankruptcy proceedings can be initiated against:
Insolvency can be initiated in court:
- by a debtor (an individual himself, sole proprietorship, legal entity based on the owner’s decision)
- by creditor (upon petition, with the justification of the amounts of creditor’s claims)
Our services in terms of bankruptcy proceedings:
- the advice of our law firm specialists
- review of the documents and legal analysis of the cause of action
- recommendations as to the practicability of taking steps to restore solvency or go into liquidation
- development of the strategy and tactics for the conduct of bankruptcy proceedings
- determination of the methods of debt repayment or monetary claim satisfaction
- providing advice in the course of bankruptcy proceedings – from preparations for hearing to the conclusion of the proceedings
- monitoring all the stages of insolvency/bankruptcy proceedings
- acting as an insolvency practitioner (receiver, administrator, trustee, liquidator)
- acting for a debtor in relation to creditors and other parties to insolvency/bankruptcy proceedings
- acting for a client at creditors’ meetings
- acting for a client in creditor committee
- challenging decisions of the creditor committee
- challenging the monetary claims
- challenging any procedural documents in bankruptcy proceedings
- appealing against court judgments, etc.