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Bankruptcy means the debtor's proven in court the lack of the ability to fulfill his obligations to counterparties. First of all, we are talking about financial obligations:

• payment of benefits and salaries to employees,
• transfer of taxes to budgets of different levels and established amounts to state funds.

The insolvency of the organization is established in the order of arbitration proceedings. Both legal entities and individuals act as the debtor, and the procedure itself is regulated by the profile Federal Law No. 127, which was adopted in 2002.

The article considers how the process of recognizing a person as insolvent ends, what awaits him after the court makes a decision.

Fact

We note right away that one of the most important consequences of the termination of bankruptcy proceedings is the restoration of the debtor's rights in relation to the property belonging to him.

Grounds for termination of insolvency proceedings

Article 57 of the above-mentioned Federal Law No. 127 establishes a list of grounds on which the termination of enforcement proceedings in bankruptcy is carried out. Among them:

• the signing by all parties of the amicable agreement;
• full restoration of the organization's solvency, if this happened at the stage of rehabilitation and external management;
• payment of all debts to creditors included in the register;
• confirmation of the unreasonableness of the claims presented by the counterparty who filed for the bankruptcy of the debtor;
• refusal of the counterparty from claims;
• lack of money to cover legal costs and remuneration of the manager.

It should be understood that the specified list of reasons is not imperative. This means that the list can be supplemented by other norms of law contained both in this law and in others. For example, Article 125 of this Federal Law establishes the possibility of terminating the trial when third parties make payment for the debtor's obligations. But this should happen at the stage of bankruptcy proceedings.

Reasons for the termination of the bankruptcy case

Consider the reasons why the trial may be terminated:

1. Financial problems

If the organization does not have the money for legal fees or expenses, and also to pay for the activities of the manager, the proceedings in the case of its insolvency ends. Termination is possible, including when, for further proceedings, it is necessary to carry out other procedures that require payment. All this entails the impossibility of further application of any measures, as well as the inexpediency of such actions.

In addition, if all the goals set by the proceedings have been achieved, there is no direct prohibition in the legislation on the early termination of the proceedings.

Note that the court can stop considering the case only after submitting the reports received in the framework of the bankruptcy proceedings.

2. Petition

A petition is a document that is drawn up by an interested person for the purpose of assigning a specific and specific action by the judicial authority. On its basis, it is possible to prevent bankruptcy by the debtor, if there are good reasons.

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When the author of the petition is the manager, he has to attach reports and other evidence indicating the impossibility of declaring the company insolvent. These include, for example, documents on the full repayment of financial obligations to counterparties. This fact is one of the reasons for the termination of production, as indicated in Article 53 of the Federal Law No. 127.

The application can also be submitted by the counterparty. There it is usually stated about the need to terminate the proceedings due to its inexpediency.

As for the debtor himself, he needs to attach to his petition:

• accounting documents;
• justification of the right to go to court;
• minutes of the meeting and a list of creditors' claims;
• registration documents of the organization.

3. Settlement agreement

Termination on the basis of the agreement by the parties to the settlement is possible at any stage of the proceedings. Consensus achieved through mutual concessions is taken as the basis. The main goal is to end the trial.

An amicable agreement is a voluntary option for resolving the current disputable situation. The parties are the debtor and creditors. In addition, third parties can be participants if they have an appropriate legal status.

If there are more than one creditors, the consent to accept the settlement must be made at the meeting. A decision is considered approved if a simple majority of those present voted for it. The debtor is responsible for the decision:

• the individual himself;
• the head of the company - at the stage of observation;
• manager - at the stage of external management;
• bankruptcy commissioner - at the stage of bankruptcy proceedings.

The settlement agreement is signed by the parties and submitted to the arbitration court. He, in turn, approves this document. Dissolution of the peace is possible only through proceedings in court. This usually happens if the debtor does not fulfill the obligations assumed. In this situation, a new trial is opened.

Termination procedure

Consideration of the insolvency case itself falls within the competence of the arbitration court and is carried out at the place of residence of the defendant (or in accordance with the legal address of the organization). To avoid bankruptcy, the following measures are usually taken:

• conclusion of an amicable agreement between the parties;
• sale of property at auction for the purpose of debt repayment;
• debt restructuring.

Sometimes the process is suspended when a request is made by those interested in the case. Then the judge is given time to study the materials, after which he has the right to decide whether the requirement to declare insolvent is justified and lawful. Further, a moratorium is imposed on the fulfillment of any financial obligations. Most often, the courts prefer to apply restructuring, but if even this does not help the debtor to cope with the problems, then the following happens:

• a decision is made on the bankruptcy of a citizen or company;
• certain restrictions are imposed on travel to other countries;
• the property is being sold at a public auction.

Usually the process takes about six months, and sometimes even longer.

Registration of the application

When the receiver is responsible for drawing up the request, he bases the request on:

• reporting documentation;
• other evidence confirming the impossibility of further carrying out the procedure.

You should once again pay attention to the already mentioned article 57 of the profile Federal Law No. 127. It lists all the grounds upon which the arbitral tribunal terminates the insolvency proceedings.

If we talk about evidence, then they are used as:

• reports prepared by external managers;
• registration information about the organization
• a document confirming the possibility and the right to go to court;
• minutes of the meeting of creditors and a register of their claims.

If a person applies for the termination of the insolvency proceedings, the request must include the following information:

• the exact name of the court where the said application is sent;
• information about the parties to the case and interested parties, if it matters;
• basis for writing an application;
• case number for its identification;
• a detailed description of all circumstances relevant to the case and legal facts;
• a list of the applicant's requirements;
• an indication of the legal norms by which the submitter of the application was guided and which confirm his claims;
• date and signature of the person making the request;
• a list of attached documents to confirm all the above facts.

Drawing up an amicable agreement

This measure is considered anti-crisis for companies and individuals in the process of filing for bankruptcy.

Usually, drafting a settlement agreement does not cause difficulties, but it also has features and nuances that a person without appropriate experience and education may not suspect. For this reason, it is better to entrust the task of writing this document to specialists.

Consequences of termination of insolvency proceedings

Any legally significant action has its consequences. An exception is not the termination of proceedings related to the bankruptcy of a legal or natural person. Thus, for example, all restrictions in force during the observation phase are canceled. Other consequences include:

• restoration of the ability of counterparties to make demands in a general manner;
• restoring the legal capacity of the person owed to the founders and creditors in the presence of various kinds of sanctions;
• the abolition of the restrictions in force against the leaders of the organization;
• resumption of proceedings related to disputes about financial obligations, if they were suspended at the request of the counterparty;
• termination of the powers of the manager;
• restoration of the debtor's rights related to the disposal of property.

Arbitrage practice

If you look at the judicial practice, then most cases are terminated due to the signing by the parties of a settlement agreement. Usually the company is given the opportunity to pay off obligations in installments. The second most popular reason is the lack of money for further proceedings.

Some clarifications, which are of great importance for the implementation of legal norms in practice, are indicated in the Resolution of the Plenium of the Supreme Arbitration Court of the Russian Federation of June 22, 2012. It says that it is possible to stop production at the monitoring stage, but only if creditors waived their claims within 30 days from the publication of information about the introduction of this procedure. This means the following: it will be possible to avoid the opening of bankruptcy proceedings if you pay the amount of the debt included in the register. To terminate the insolvency procedure, claims not entered in the register do not require extinguishment.

In addition, one should pay attention to the clarifications of the RF Armed Forces dated August 15, 2016. They state that the minimum amount of debt to qualify for bankruptcy does not apply if the circumstances of the case clearly demonstrate the insolvency of the company (or individual).

Suspension of proceedings

The law provides for situations in which it is possible to suspend for the duration of the proceedings related to the bankruptcy of a person. The reason can be:

• appeal against certain judicial acts in the prescribed manner;
• appeal against decisions of the meeting of creditors;
• other factors enshrined in the Arbitration Procedure Code of the Russian Federation.

If the court issues a ruling according to which the case is suspended, then it does not have the opportunity to adopt other procedural acts provided for by Article 52 of Federal Law No. 127. However, this does not prevent the issuance of other rulings in these proceedings.

The decision to temporarily suspend the consideration of the case shall be made by the arbitration court. It is based on a statement written by one of the parties. A prerequisite for this will be the existence of a legal and reasonable basis for the suspension.

Not only the creditor and the debtor, but also their representatives have the right to submit a corresponding request. However, they must act on the basis of a notarized power of attorney. In addition, they should have the statutory documentation of the organization with them.

Possible consequences

In the profile Federal Law No. 127 there is a separate article, which describes all the possible consequences of termination of the insolvency procedure. First of all, it says that after such a decision is made by the arbitration court, all restrictions imposed on the organization cease to be effective. They could either be specified in other legislative acts, or be implied by the very essence of the procedure (for example, observation). We are talking about the return of the right to freely dispose of property belonging to a person, to travel to other countries.

Usually, based on the results of the proceedings, the arbitration court makes a decision either on the bankruptcy of the organization, or on the introduction of a rehabilitation procedure. He can also issue a ruling on the termination of production. Recovery provides a chance to restore the solvency of a legal entity, that is, it assumes the availability of a certain amount of funds. In some cases, when there is no way to return to a favorable situation, the company is liquidated. This happens when there is no chance to restore solvency.

Consider a separate situation where, in the course of the observation process, it turns out that the company does not have enough money to cover all the necessary costs associated with legal fees and remuneration of the manager. Sometimes lenders give written consent, in which they express a desire to finance these activities. Then the costs are transferred to them, and the process itself continues. In general, this happens if the counterparties have a high chance of getting their money back after the sale of the company's property.

At the same time, if at least one of the counterparties does not agree to cover the current legal costs, the bankruptcy proceedings of the legal entity may be terminated. In such a situation, the court does not proceed to bankruptcy proceedings. If he nevertheless does this, then the liquidator has the right to appeal against such a decision. The reason is the impossibility of securing expenses at the expense of the firm's own funds.

When the lack of money is already revealed during the bankruptcy proceedings, the trustee is empowered to apply for the recovery of the necessary funds from the original applicant. Even if it concerns expenses already incurred.

Enforcement proceedings

Upon completion of the bankruptcy procedure, the writ of execution is returned to the applicants or creditors. However, after the end of the proceedings, the counterparties have the right to present additional requirements, following the established rules.

The writ of execution is transferred to the bailiffs. It should be taken into account that the collection is carried out only in relation to current payments, or those that cannot be expressed in monetary terms. This is about:

• prevention of violations that cause harm to objects of intellectual property;
• prevention of possible violation of rights when it is not related to deprivation of property;
• withdrawal of property from someone else's possession.

In the absence of the above grounds, there is no official, legal reason for filing a statement of claim.

Recovery upon termination of insolvency proceedings

If a decision is made to terminate this procedure, this does not mean that absolutely all creditors' claims are not subject to execution. There are separate categories of obligations that remain in any case. These include:

• payment of alimony for the maintenance of minor children;
• salary and severance pay of employees, as well as other transfers related to labor legal relations;
• compensation for damage and harm caused to life or health;
• current debts to counterparties and creditors.

In most cases, these obligations are directly related to the organization. In this case, it does not matter whether these claims were made during the proceedings or after it. They still have to be fulfilled. In this case, you should act in one of the following ways:

• the court issues a writ of execution for those creditors who are not in the register, after all settlements have been made with persons who have submitted claims earlier;
• if the creditor was not on the list and did not participate in the insolvency procedure, then he demands payment of obligations, simply by drawing up a statement of claim.

There are situations where obligations are in any case to be fulfilled. We are talking about such cases as:

• the person in arrears is a participant in the process, where he is brought to subsidiary liability;
• the citizen was a member of a legal entity that was injured;
• a citizen with direct or indirect intent has harmed the company. Then enforcement proceedings in case of bankruptcy of an individual shall not be subject to suspension or termination.

Conclusion

The debtor should pay special attention to the selection of the bankruptcy commissioner. It is desirable that he be a member of a special self-regulatory organization (SRO). Note that the debtor is not entitled to indicate a specific candidate, but he is given the opportunity to choose an SRO.

The bankruptcy procedure is a complex mechanism, within the framework of which a register of persons who have presented certain claims to a debtor wishing to become insolvent is compiled. As a result, both the restoration of the organization's activities and its liquidation are possible.

Each of the stages of the trial is characterized by its specific features. The law defines a specific circle of persons who, within the framework of these stages, are endowed with rights and obligations. It is not just about the debtor and creditors directly.

Debt write-off, as well as their reclamation, takes place solely on the basis of a court decision. This is important, among other things, for those obligations that could not be settled by receiving funds from the sale of property owned by the company.

In general, the court must take measures to prevent the insolvency of the organization, and the termination of the procedure is one such measure.

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The end of the procedure for recognizing financially insolvent means the restoration of the status of a person and the return to him of the rights to own and use the property in his ownership.

To complete the process initiated by the court, it is required to submit an appropriate application or petition to the authorized state body.

Grounds for Completing a Bankruptcy Case

The procedure for declaring a citizen, entrepreneur or enterprise financially insolvent is carried out exclusively by the decision of the arbitration court. If the case has already been accepted for consideration, the termination of the proceedings is permissible only on the basis of an application by the interested person or the issuance of an appropriate decision by the judge.

The following legal grounds for the termination of an insolvency case are distinguished, based on Article 57 of the Federal Law No. 127 of 2002 on October 26:

• restoration of the solvency of a person declared bankrupt as a result of external management or actions taken for the financial recovery of the debtor;
• signing between the bankrupt and the lenders;
• the waiver of all known creditors from their claims for the payment of debt;
• announcement of unfounded grounds of the person who filed an application to the court for the recognition of financial insolvency;
• satisfying the claims of all creditors from the unified register drawn up by the interim manager;
• the debtor does not have property and finances to pay off debt obligations.

Any interested person - a citizen or a legal entity - can declare the need to end the bankruptcy procedure if there are good reasons for this. For this purpose, it is necessary to draw up on the termination of the bankruptcy case (the participants in the proceedings file) and submit it to the judicial authority dealing with the consideration of the specific situation.

If the court decides to terminate the case on recognizing the person as bankrupt, re-appeal is unacceptable if we are talking about the same participants in the proceedings, similar grounds and requirements. The plaintiff will be able to apply to the judicial authority again if the circumstances that gave rise to the refusal to consider the case are eliminated.

The procedure for declaring a person to be financially insolvent is terminated after the arbitration court has issued an appropriate order (from the moment it becomes legal).

Required documentation for submission to the application

As mentioned above, any interested person participating in the process (for example, the debtor himself or his creditors) can submit an application or petition to the court. It is not prohibited by law to act on behalf of a representative.

Any appeal to the court must be accompanied by the provision of additional documentation confirming that the applicant has grounds for filing documents and reasons for completing the procedure. These securities include:

• applicant's identity card;
• a power of attorney certified by a notary office (if necessary);
• constituent documents of the enterprise (if the applicant debtor is a legal entity);
• papers confirming the existence of the circumstances specified in the application or petition, but on the basis of which the person requires the completion of the proceedings.

The exact list of documents required to be attached to submit an application to the judicial authority depends on the circumstance, as a result of which it became possible to terminate the procedure. It is possible to clarify the list of papers with a court employee or a lawyer (for example, a lawyer).

Consequences of termination of bankruptcy proceedings

On the basis of Article 56 of the Federal Law No. 127, after the completion of the process for recognizing a person as financially insolvent, all restrictions established in connection with the beginning of the procedure are removed.

In other words, the prohibitions on the disposal of property, the impossibility of crossing the border of the Russian Federation, making any transactions to alienate the debtor's property, etc., are removed.

After considering the insolvency case, the court makes a decision to terminate the procedure initiated against the citizen or enterprise. Not all obligations of the debtor are terminated after the court makes a decision.

For example, a citizen in respect of whom a decision has been made to pay alimony must fulfill his obligation even if he is declared insolvent. The same rule applies to payments for compensation for damage caused to the health of citizens, as well as those related to an official employment contract.

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Bankruptcy is the inability of a debtor to pay off financial obligations to creditors, including monetary obligations, payment of benefits, salaries of employees, payment of taxes, fees, payments to pension and insurance funds, established by a judicial authority. Bankruptcy is established in the course of arbitration proceedings. The debtor can be legal entities and citizens with and without the status of individual entrepreneurs. The relations of subjects of civil legal obligations within the framework of bankruptcy are regulated by the Federal Law of October 26, 2002 N 127-FZ. Termination of bankruptcy proceedings presupposes the restoration of the debtor in his rights in relation to the property.

Grounds for termination of bankruptcy proceedings

The grounds for terminating bankruptcy proceedings are regulated by Art. 57 of the governing law. These include: - restoration of the debtor's solvency.

This ground refers to the stages of financial recovery and external management; - conclusion by the participants in the process of an amicable agreement; - repayment of monetary obligations to creditors included in the register; - establishment of the fact that the claims of the creditor - the applicant for the bankruptcy of the person; - insufficient funds to pay off court costs, as well as to pay the remuneration of the administrator appointed by the court, etc. It should be noted that this article is dispositive, allowing the list of grounds to be supplemented with other legislation governing insolvency issues.

So, Art. 125 of the said law contains one more ground for terminating the bankruptcy process, namely: payment of financial claims against the debtor at the stage of bankruptcy proceedings by third parties.

Reasons for the termination of bankruptcy proceedings

Liquidation, as one of the consequences of bankruptcy, means the complete termination of the debtor's activities and the write-off of the balances of accounts payable

Detailed description of the procedure

Usually, the arbitration court, which is located at the place of residence of the defendant, deals with such cases. The following remedial measures are being taken to avoid the imposition of bankruptcy status:

1. Signing of settlement agreements with creditors.
2. Realization of property.
3. Debt restructuring, which is carried out only for a certain period.

The interested parties themselves also submit a petition if the process needs to be suspended. The judge first examines all submitted materials.

And only after that does it decide whether it is worth recognizing the previously put forward requirement to obtain the status of an insolvent person unreasonable.

Then a moratorium is imposed on the fulfillment of obligations. The courts are more likely to apply restructuring. But, if the debtor is not able to cope even with this:

1. He is awarded bankruptcy status.
2. Additional restrictions for those who are going to leave the country.
3. The property is sold through a public auction.

The latter situation leads to an extension of the time frame up to six months or more.

Registration and preparation of the application

If, however, only the bankruptcy commissioner is responsible for drawing up, then he must rely on:

1. Reports.
2. Evidence, together with grounds, no longer allowing the use of bankruptcy status.

Particular attention should be paid to Article 57 of the Federal Insolvency Law.

1. The arbitration court shall terminate the bankruptcy proceedings in the event of: restoration of the debtor's solvency in the course of financial rehabilitation; restoration of the debtor's solvency in the course of external management; conclusion of an amicable agreement; recognition of the applicant's claims during observation as unreasonable, which served as the basis for initiating bankruptcy proceedings, in case of the absence of creditors 'claims declared and recognized in the manner prescribed by this Federal Law, other requirements of the creditors corresponding to the provisions of Article 6 of this Federal Law; refusal of all creditors participating in the bankruptcy case from the declared claims or the demand for declaring the debtor bankrupt; satisfaction of all creditors' claims included in the register of creditors' claims, in the course of any procedure applied in a bankruptcy case; lack of funds sufficient to reimburse legal costs for conducting procedures used in a bankruptcy case, including atu remuneration to the arbitration manager; in other cases provided for by this Federal Law.
2. In the cases provided for by Clause 1 of this Article, the consequences of termination of bankruptcy proceedings established by Article 56 of this Federal Law shall apply, unless otherwise provided by this Federal Law.

She says that bankruptcy stops after all obligations to creditors. As for the evidence, then in their capacity you can use:

• Reports from external managers.
• Registration information with confirmation in the form of a certificate.
• A document according to which the appeal to the court is legal.
• Minutes drawn up at the meeting.
• Register form for listing creditor claims.

The following information must be entered in the application, which contains a request to terminate the bankruptcy procedure:

1. Attached documents.
2. Date signed by the applicant.
3. List of requirements on the part of the applicant.
4. The list of norms responsible for regulating the issue.
5. Description of the circumstances of the case.
6. Number designation of a case or production.
7. The basis on which the appeal to the court itself was drawn up.
8. Complete data on all parties interested in the process.
9. Designation of the court serving as the addressee for the document.

Drafting a settlement agreement

This measure also applies to anti-crisis measures for those who are going through bankruptcy proceedings.

It is best to seek help from specialists who will draw up a document, considering all the necessary features.

Only in this case the amicable agreement itself will be approved in court.

Consequences of termination of the procedure

As with any legal action, the termination of this procedure corresponds to the corresponding consequences, including in the form of the termination of all restrictions that have arisen in connection with the adoption by the court of the relevant application and / or the introduction of the observation stage, in connection with which: the debtor of its claims in a general manner; - proceedings are resumed in disputes related to the financial obligations of the debtor, suspended at the request of the creditor; - the suspended enforcement activity in relation to the debtor is resumed, including the previously lifted restrictions on the debtor's property are subject to restoration; - the debtor's legal capacity is restored on financial obligations to its founders (participants), and creditors, including sanctions for violation of the procedure for their execution, to the owner of the debtor's property, if the debtor is a unitary enterprise; Ghans of the debtor, to whom clause 3 Art. 64 of the regulatory law at the stage of supervision, it is prohibited to adopt local acts on liquidation, reorganization, creation of representative offices or branches and others;

The powers of the administrator appointed by the court are terminated.

The practice of terminating bankruptcy proceedings

As practice shows, the termination of the bankruptcy process is most often associated with the conclusion of an amicable agreement, within the framework of which the debtor is provided with an installment plan for the payment of existing debt on all obligations to the declared creditors, as well as due to the lack of funds for further financing of the process. on the termination of the bankruptcy proceedings have the explanations contained in paragraphs 11 and 12 of the Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation of 22.06.2012. No. 35 "On some procedural issues related to the consideration of bankruptcy cases." So, according to these explanations, the termination of proceedings within the framework of supervision in connection with the refusal of the creditors participating in the process from the declared claims is possible only after 30 days from the date of publication of information on the introduction of supervision in relation to the debtor in order to inform the creditors who wish to state their claims. This means that it is possible to avoid the introduction of bankruptcy proceedings by paying only the amount of debt included in the corresponding register. Debt not included in the register of claims does not need to be paid to terminate bankruptcy.

Also noteworthy are the fresh clarifications of the RF Armed Forces contained in the Definition of the SKES of the RF Armed Forces dated August 15, 2016 No. 308-ES16-4658 in case No. A53-2012 / 2015, according to which the rule on the minimum amount of debt for declaring a debtor bankrupt (300,000, 00 rubles) does not apply if the circumstances of the case clearly indicate the insolvency of the debtor (for example, if a third party pays the debts for the debtor) and the bad faith of the persons involved in the disputed legal relationship.

Suspension situation

The requirement to suspend proceedings in insolvency cases must come from a person who is a participant in the case.

The reason for this is:

• open procedures for appealing the acts of the court, which are established by Art. 52 FZ;
• open procedures for appealing decisions made by the creditors' meeting;
• other factors provided for by the Arbitration Procedure Code of the Russian Federation.

The ruling on the suspension of the case, rendered by the court, is the basis for the impossibility of adopting the procedural acts, which are defined in Art. 52 FZ. However, suspension cannot prevent the issuance of other kinds of rulings in the case.

Basis for decision

• The decision to suspend the case is made by the court on the basis of a statement issued by a participant who is a party to the case. Thus, the application can be made by the debtor or the creditor. A prerequisite for the presentation of such a statement is the existence of grounds, the presence of which entails the suspension of the case.
• The persons representing the creditor or the debtor may be their representatives, whose powers are confirmed by statutory documents or a notarized power of attorney.

• In the course of the monitoring procedure, it may be revealed that the value of the property belonging to the debtor's property is insufficient to cover the costs associated with the litigation and the payment of remuneration to the person appointed by the bankruptcy commissioner.
• In the event that creditors have provided written consent to finance the entire range of activities related to the case under consideration, these costs will be borne by these persons.
• The lack of consent of at least one creditor to finance the costs is the basis for the termination of the court proceedings opened in the framework of the bankruptcy case (clause 1 of article 57 of the Federal Law No. 127). Thus, the court is not able to make a procedural decision on bankruptcy and proceed to bankruptcy proceedings.
• The presence of such an unlawful decision is the basis for the liquidator's appeal to the court. His demands will be to terminate the proceedings, and the rationale will be the impossibility of covering the costs at the expense of the debtor, in view of the insufficiency of his property.
• In cases where the insufficiency of the property was revealed in the course of the tender procedure, the bankruptcy commissioner has the right to demand the recovery of funds for the expenses incurred from the original applicant. He has grounds for making such claims.

About the consequences

The consequences are described in article 56 of the Federal Insolvency Law.

Article 56. Consequences of the adoption by the arbitration court of the decision to refuse to declare the debtor bankrupt The adoption by the arbitration court of a decision to refuse to declare the debtor bankrupt is the basis for the termination of all restrictions provided for by this Federal Law and which are the consequences of the adoption of the application for declaring the debtor bankrupt and (or) the introduction of supervision.

Usually we are talking about the termination of all restrictions that were in force earlier. And those restrictions that relate to the disposal of property, freedom of movement. After considering the case, the arbitration court may issue a decision on bankruptcy, reorganization, or make a determination according to which the proceedings are terminated.

• If it is confirmed that the solvency can be restored, then a reorganization is carried out. And after any disputes with existing creditors are resolved.
• When the opposite situation develops, then they proceed only to direct liquidation. This confirms that there are no opportunities to restore solvency.

Orders of execution and proceedings

When the bankruptcy procedure is completed, the orders of execution are issued back to the applicants. Or creditors. After the decision to terminate the bankruptcy has been made, the creditor may present additional claims. The main thing is to follow the general rules related to debtors. The court order can be attributed to the bailiffs. But we must remember that only current obligations are subject to collection. Or those that have no monetary value. If we talk about the second group of payments, then it includes obligations related to:

• Prevention of actions that harm intellectual property.
• Prevention of violations of rights not related to deprivation of property.
• By reclaiming property that is in someone else's possession.

If there are no such grounds, then there is no reason for the very appeal to the judicial authorities.

Recovery of money in case of termination of bankruptcy

The termination of bankruptcy does not mean that none of the creditors makes claims. Some of them persist. The group of such obligations includes:

• Payment of alimony.
• Labor-related obligations.
• Compensation for harm caused to life or health.
• Creditors' claims in connection with current debts.

Usually, such claims are directly related to the debtor himself. It does not matter whether they are declared during the bankruptcy procedure itself, or not. There are two options under which commitments can persist.

1. The court issues a writ of execution for those creditors who have not yet been entered in a special register. This happens after settlements with other partners who have submitted requirements earlier.
2. If one of the creditors is not included in the bankruptcy procedure, then the funds are required in the usual way, by drawing up a statement of claim.

In the following cases, the debtor's obligations are unambiguously retained:

• The debtor participates in the process of bringing to subsidiary liability. Typically, this scheme is used when working with legal entities.
• The legal entity suffered damage, and the citizen was a member of that legal entity.
• The citizen deliberately caused damage to a legal entity.

Particular attention should be paid to the selection of the bankruptcy commissioner. It is good if he is part of a self-regulatory organization. The debtor himself cannot recommend giving preference to one or another candidate. You can only point to the SRO itself, where a suitable candidate is selected. The court also cannot force the SRO to present a specific manager. The bankruptcy procedure itself is a whole system. Within its framework, certain requirements are imposed on the debtor, allowing him to obtain bankruptcy status, as well as pay off creditors. Or it is possible to restore solvency for all operations.

Each of the stages included in the bankruptcy procedure is endowed with characteristic features. There is a certain circle of persons who enter into this procedure, and not only debtors and creditors. The basis for writing off or reclaiming debts is most often court decisions.

They are especially important for liabilities that have not been repaid by cash from the sale of a particular property. Therefore, the court itself must take measures to prevent bankruptcy. Termination of the procedure is one such measure.

In translation from Italian, the word "bankruptcy" means "broken bench". This is due to the historical traditions of banking in the region. The first financial transactions were carried out in public places on benches, which were then called a bank. The broken bench spoke of the ruin of its owner.

The concept of "bankruptcy"

A term synonymous with bankruptcy is insolvency. It characterizes a situation that can arise for both an individual and a legal entity, when it is unable to pay off debts to the state for the payment of mandatory payments or to borrowers. Such a situation comes after it is recognized in the prescribed manner by the relevant state bodies.

Bankruptcy also means the process of assessing the financial condition of an entity with debts. If the debtor himself starts the procedure, then it is called self-bankruptcy. Many citizens are interested in the question: can the bankruptcy procedure be terminated? The answer to it can be found later in the article. But first you need to get some background information.

Debtor's solvency

The restoration of the debtor's solvency is made upon full repayment of his debt to creditors. He can make appropriate payments from his own funds to persons entered in the state register, or receive the necessary amount of money for these purposes. All creditors' requirements must be met, and at the same time. Information on the fulfillment of obligations is entered into the state register.

A person who assumes responsibility for the fulfillment of obligations to pay off debts applies with a similar intention to the bankruptcy commissioner. The latter is obliged to reject similar requests from others within a week. If the approved person does not start to take the appropriate actions or does not cope with them in full by the end of the month, the decision is canceled.

Creditors are required to accept funds to pay off the debt from any person, be it the debtor himself, the founders of the company, the owner of the assets, or another party. In the event that the person to whom the owe is owed has not fulfilled its obligations to provide the necessary information and documentation within the prescribed time frame, the funds are temporarily deposited into the notary's account.

Debtor's financial recovery

The solvency of a company is one of the main parameters necessary for its successful functioning and finding out the answer to the question of whether the bankruptcy procedure can be terminated .. A monitoring system has been introduced in bankruptcy proceedings. Within ten days from the date of its launch, the liquidator holds a meeting of founders in order to determine measures aimed at correcting the financial situation that has arisen. The list of events is approved on the basis of a vote. The founders have the right to provide their funds in the form of:

• mortgages;
• collateral;
• state guarantee;
• bank guarantee;
• sureties;
• other measures permitted by law.

The following measures may be proposed to managers:

• revision of the staffing and structure of the organization;
• changes in the production process;
• partial sale of property;
• work with accounts receivable, if any;
• issue and sale of additional shares;
• capital replenishment through additional contributions.

This is not a complete list of measures that the head of the organization can take to restore the solvency of the structure entrusted to him.

External management plan

If the company went to the bankruptcy procedure, it means that not everything was going smoothly in its activities, its management was carried out ineffectively. Accordingly, she will not be able to get out of the debt trap on her own. Can bankruptcy proceedings be terminated if the company does not have a competent manager who is able to make payments on debts? Unlikely. Therefore, external management is introduced. It is mandatory for business insolvency.

Within a month from the date of appointment, the new manager must develop an external management plan. It is approved by the meeting of creditors. This document must contain a list of measures aimed at restoring the debtor's solvency. Also, this kind of plan should include information on the timing and sequence of procedures, the amount and content of costs.

Satisfaction of creditors' claims

The procedure for paying off debts to creditors is regulated by article 64 of the Tax Code of the Russian Federation. The first to receive their payments are those obligations to which arose before the start of the bankruptcy procedure, they are extraordinary recipients of funds. In addition, they do not wait in line for payments for the prevention of man-made and environmental disasters, loss of life, settlements with the registrar.

The first in line are those who are in debt due to harm to life and health. They are followed by payments on wages and interest for its delay, severance pay and benefits for the result of intellectual work. Among them, their own sequence of payments has been established. The third stage includes bankruptcy creditors and authorized bodies.

First, the main debts and interest on them are paid, and then:

• fines;
• penalty interest;
• compensation for lost profits.

After that, the settlement of invalid transactions is carried out.

Debt repayment with pledged property

If any transactions were supported by the pledged property, then they must be sold. Seventy percent of the sale amount is sent to a special bank account to pay off the debt under this transaction. Twenty percent of these funds are intended for settlements with creditors of the first and second stages. The remainder goes to court costs and fees for the services of the manager.

Grounds for termination of office work

The procedure for terminating a bankruptcy case is regulated by Art. 57 FZ 127 "On insolvency (bankruptcy)". The competent authority for such proceedings is the arbitration court.

Can bankruptcy proceedings be terminated? Yes maybe. But the grounds for terminating bankruptcy may be certain aspects of office work.

• Restoring the debtor's solvency through external management or financial recovery.
• Unreasonable demands of the initiator to declare an individual or legal entity bankrupt.
• Termination by creditors of claims.
• Fulfillment of obligations to creditors in full.
• Failure to pay the costs associated with litigation, including the funds paid to the bankruptcy commissioner.

There are other legal grounds for terminating bankruptcy proceedings. To find out, you need to familiarize yourself with tax laws.

Petition

With the help of the petition, you can ask for the termination of the bankruptcy proceedings. This document can be sent to the arbitration court by any interested person. If this is an arbitration manager, then it should contain links to:

• report;
• justified and documented reasons for the termination of office work.

Creditors can also apply for the closure of the case following the consideration of the bankruptcy commissioner's report, if they find sufficient arguments in it. This document, as well as the register of creditors, minutes of the meeting of creditors and other documentary information may be attached by the person who applied to the court to the application.

Application form

Application for termination of bankruptcy proceedings nat. persons and legal entities persons must contain the following information:

• the name of the arbitral tribunal where the application is sent;
• data of the applicant, as well as the debtor, creditors;
• grounds for appeal;
• details of office work;
• references to regulations;
• case description;
• the applicant's requirements;
• date of writing the application, signature of the person submitting it;
• list of applications.

Declaration of bankruptcy of individuals and legal entities is not something out of the ordinary for a long time. Sometimes this is the only possible way out of the current situation. Most often, such cases are conducted by lawyers specializing in this particular area. In the public domain on the Internet, you can see a large number of comments and answers to questions about bankruptcy of individuals. persons and legal entities persons.

So, for example, one of the specialists explains the legality of the creditor's submission of a repeated application against the debtor. This is possible if the organization has not been liquidated and in relation to its office work was terminated. If the claims of the creditors are not satisfied, any of them may apply to declare the debtor bankrupt.

If the case for declaring the enterprise bankrupt is terminated, then the subject restores its rights to the property. Therefore, they are actively fighting for such a right. Everything related to insolvency is described in the Federal Law of the same name No. 127-FZ.