Bankruptcy liquidation is the inability of a company to continue operating due to financial difficulties that prevent it from fulfilling its debt obligations. The company is declared bankrupt based on a court decision following current legislation. To do this, the owner of the company or the lender must submit the appropriate application, which will be prepared by our company’s specialists.
Bankruptcy liquidation involves the sale of debtors’ assets to satisfy creditors’ claims. If the debtor has absolute solvency, it is possible to recover financially, settle all debts, and then return to its original state. The absence of mandatory closure of the company is the main feature of this type of liquidation, but it should be borne in mind that there is a fairly small number of chances to exit the liquidation procedure.
It is possible to initiate bankruptcy by the company itself, creditors or regulatory authorities. The arbitration manager may also be involved in this procedure.
If the company independently initiates its bankruptcy, the liquidation commission, which was appointed by the company’s governing bodies, applies to the economic court with an application for declaring the organization bankrupt. After the liquidation procedure has been opened and the debtor has been declared bankrupt, the court approves the liquidator’s report and the liquidation balance. This is followed by a final decision on liquidation. All claims that were not satisfied earlier are settled after the trial.
In addition to getting rid of all debts during liquidation using the bankruptcy procedure, the company can take advantage of another advantage, which is the absence of verification by the tax inspection authorities.
You can liquidate an organization through bankruptcy proceedings or protect your interests in case of bankruptcy of the debtor yourself, but the best solution is to order services from professional specialists who have practical experience and know all the innovations in the field of legislation. Kasyanenko & Partners Law Company specialists of the will undertake legal registration and support of the bankruptcy liquidation procedure.
Legal and illegal types of bankruptcy
There are such types of insolvency of financial companies:
- actual bankruptcy, which was caused by the company’s inability to carry out its activities due to the marginal level of cash losses;
- conditional bankruptcy, assuming that the excess of the company’s expenses is temporary. In this situation, effective crisis management can restore the financial position of the organization, as a result of which it is possible to avoid liquidation;
- deliberate bankruptcy is an illegal act that involves the deliberate embezzlement of financial assets by the company’s governing bodies.
Kasyanenko & Partners Law Company lawyers use only those methods of termination of the business entity through bankruptcy that meet the current legislation of Ukraine.
We offer our clients the following services:
- thorough analysis of the situation, formation of the client’s legal position to be able to develop the most effective line of protection of their interests in the future;
- collecting a set of documents to apply to the judicial authorities;
- representation of the client’s interests at all court sessions;
- training, if necessary, and the filing of motions and objections;
- ensuring control over the execution of judicial decisions.
One of the main directions of our company is to provide services to protect the interests of clients during disputes that arose during the implementation of economic activities, including disputes regarding the bankruptcy procedure.
Once a decision has been made to declare a company bankrupt, compulsory liquidation of the debtor company is mandatory. At this time, it is also excluded from all registers.
Our specialists are ready to implement a set of actions regarding representation of clients ‘ interests during the company’s bankruptcy procedure. We provide full support at all stages, including pre-trial preparation, trial stage and control of the implementation of the decision that was made by the court.
If you need to protect your interests in bankruptcy proceedings, we are ready to help you. Your questions will be handled by highly qualified specialists with experience in this area!