Termination of bankruptcy proceedings. Bankruptcy procedure: official termination

In the settlement agreement, the parties indicate the conditions under which the case is terminated.

Termination of bankruptcy proceedings for an individual

For example, the lender believes that the financial manager is not earning his money. Deliberately delays the process and does not try to collect money from the debtor. This means that the time has come to sign a settlement agreement. An agreement can establish that the debtor pays for the services of the manager, and this is where the legal debate ends. By the way, after signing an agreement, the parties must fulfill it. It is impossible to unilaterally refuse the obligations assumed under the agreement (clause 6 of Article 150 of the Federal Law “On Insolvency”).

Court proceedings are carried out according to the rules established by procedural legislation. This means you cannot simply shake hands with creditors and end the dispute. The procedure must be carried out correctly. A petition is sent to the court with a request to discontinue the consideration of the case.

· name of the court;

· reasons for contacting;

· date and signature;

· necessary applications.

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Art. 45 Federal Law On Insolvency (Bankruptcy) Federal Law 127 of October 26, 2002

Federal Law on Insolvency (Bankruptcy)
Article 45. Procedure for approving an arbitration manager

1. Upon receipt of a ruling by an arbitration court to accept an application for declaring a debtor bankrupt, which indicates the candidacy of an arbitration manager, or the minutes of a meeting of creditors on the selection of a candidate for an arbitration manager, the declared self-regulatory organization of arbitration managers, of which the selected arbitration manager is a member, submits to the arbitration court information about compliance of the said candidacy with the requirements provided for in Articles 20 and 20-2 of this Federal Law.

In the event of receiving a ruling from an arbitration court to accept an application for declaring a debtor bankrupt, which does not indicate the candidacy of an arbitration manager, or the minutes of a meeting of creditors on the selection of a self-regulatory organization, the declared self-regulatory organization nominates a candidacy for an arbitration manager from among its members who have agreed to be approved by the arbitration court in the case about bankruptcy.

The declared self-regulatory organization does not have the right to nominate an arbitration manager who does not have access to state secrets in the established form, if the presence of such access is a mandatory condition for the arbitration court to approve the arbitration manager.

2. The debtor and the territorial body of the federal executive body in the field of security, respectively, within two days and seven days from the date of receipt of the arbitration court’s ruling to accept the application for declaring the debtor bankrupt, are obliged to submit to the arbitration court and the declared self-regulatory organization of arbitration managers information on the form of admission to the state secret of the debtor’s manager and the degree of secrecy of information that is accessed at the debtor’s enterprise, or the absence of such clearance or such information.

3. The declared self-regulatory organization of insolvency practitioners is obliged to ensure free access for interested parties to the procedure for selecting a candidate for an insolvency insolvency practitioner.

The decision to nominate a candidate for an arbitration manager is made by the declared self-regulatory organization on a collegial basis.

4. No later than nine days from the date of receipt of the arbitration court’s ruling on accepting the application for declaring the debtor bankrupt or the minutes of the meeting of creditors on the selection of a candidate for an arbitration manager, the declared self-regulatory organization of arbitration managers sends to the arbitration court, the applicant (the meeting of creditors or a representative of the meeting of creditors) and the debtor information about the compliance of the candidacy of the arbitration manager with the requirements provided for in Articles 20 and 20-2 of this Federal Law, in a manner that ensures delivery within five days from the date of sending, or presents the candidacy of the arbitration manager, as well as, if necessary, information about the availability of the arbitration manager’s access to state secret.

The declared self-regulatory organization is responsible for providing false information about insolvency practitioners.

Replacing the candidacy of the arbitration manager or self-regulatory organization specified in the application for declaring the debtor bankrupt is allowed at the request of the applicant before the date of sending to the declared self-regulatory organization the arbitration court's ruling on accepting the application for declaring the debtor bankrupt or the minutes of the meeting of creditors on the selection of the candidacy for the insolvency practitioner.

5. Based on the results of consideration of the information provided by the self-regulatory organization of arbitration insolvency practitioners on the compliance of the candidacy of the insolvency administrator with the requirements provided for in Articles 20 and 20-2 of this Federal Law, or the candidacy of the insolvency administrator, the arbitration court shall approve the insolvency administrator who meets such requirements.

6. If the arbitration manager is released or suspended by the arbitration court from performing the duties assigned to him in a bankruptcy case and the decision to select another arbitration manager or another self-regulatory organization of arbitration managers is not submitted by the meeting of creditors to the arbitration court within ten days from the date of release or removal of an arbitration manager, a self-regulatory organization of which such an arbitration manager was a member shall submit to the arbitration court, in the manner established by this article, a candidacy of an arbitration manager for approval in the bankruptcy case.

Cassation clarified problematic aspects of insolvency practice

In the event that the self-regulatory organization of arbitration insolvency practitioners does not submit to the arbitration court a candidacy for an arbitration insolvency practitioner or information about the compliance of the candidacy of an arbitration insolvency practitioner with the requirements provided for in Articles 20 and 20-2 of this Federal Law, within fourteen days from the date of receipt of the arbitration court's ruling on acceptance of the application for recognition of the debtor bankrupt or the minutes of a meeting of creditors on the selection of an arbitration manager or a self-regulatory organization, the arbitration court postpones consideration of the issue of approving an arbitration manager in a bankruptcy case for thirty days. In this case, the applicant, as well as other persons participating in the bankruptcy case, have the right to apply for approval of an arbitration manager in the bankruptcy case from among the members of another self-regulatory organization (as amended by Federal Law of July 19, 2009 N 195-FZ - Collection of Legislation of the Russian Federation, 2009, No. 29, Art. 3632).

If, within the established period, the applicant has not applied to the arbitration court with a petition or the self-regulatory organization specified in such a petition has not provided information on the compliance of the candidate for an arbitration manager with the requirements provided for in Articles 20 and 20-2 of this Federal Law, or the candidacy of an arbitration manager, the arbitration court shall consider the petitions other persons participating in the bankruptcy case.

When several petitions are received from other persons participating in the bankruptcy case, the arbitration court approves the arbitration manager, whose candidacy is indicated in the petition received first by the arbitration court, or the candidacy of the arbitration manager nominated by the self-regulatory organization specified in such a petition.

8. (Clause 8 has lost force on the basis of the Federal Law of July 27, 2010 N 219-FZ - Collection of Legislation of the Russian Federation, 2010, N 31, Art. 4188).

9. If a candidate for an arbitration manager is not submitted within three months from the date when the arbitration manager must be approved in accordance with this Federal Law, the arbitration court shall terminate the proceedings in the case (as amended by the Federal Law of July 27, 2010 No. 219-FZ - Collection of Legislation of the Russian Federation, 2010, No. 31, Art. 4188).

10. In the event that the arbitration manager, whose candidacy is indicated in the arbitration court’s ruling on accepting an application for declaring a debtor bankrupt or the minutes of a meeting of creditors on the selection of a candidate for an arbitration manager, or other arbitration managers - members of the declared self-regulatory organization of arbitration managers do not have access to state secrets established form and the presence of such admission is a mandatory condition for the arbitration court to approve the arbitration manager, the declared self-regulatory organization within the period established by paragraph 4 of this article informs the arbitration court about this.

11. The arbitration court applies to the declared self-regulatory organization of insolvency practitioners if it has not received or untimely received information about the availability of the debtor’s manager’s access to state secrets and the form of such admission, to confirm information about the compliance of the candidacy of the insolvency administrator with the requirements provided for in Articles 20 and 20- 2 of this Federal Law, or re-submission by a self-regulatory organization of a candidacy for an arbitration manager in the manner established by paragraph 4 of this article.

(Article 45 as amended by Federal Law No. 296-FZ of December 30, 2008 - Collection of Legislation of the Russian Federation, 2009, No. 1, Art. 4)

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Bankruptcy case may be dismissed

Citizens' bankruptcy cases are not always brought to their logical conclusion. The grounds for terminating a bankruptcy case are established by Art. 57 Federal Law “On Insolvency”.

Once the trial is terminated, it means that the debtor does not face the consequences provided for by the Federal Law “On Insolvency”.

To terminate the procedure, the debtor and his creditors must sign a settlement agreement. It states that the parties have no claims against each other.

There is another basis for terminating insolvency proceedings. The debtor does not have the financial ability to continue paying for the procedure.

There are six grounds for terminating a bankruptcy case

You can't just stop a trial. There are six reasons for stopping production:

1. The financial situation of the debtor has improved.

2. The parties signed a settlement agreement.

3. The court found that the lenders' demands were illegal.

4. The lenders decided to abandon their claims.

5. The debtor managed to pay off his debts to all creditors.

6. There are no funds to finance a bankruptcy case. It does not matter: the debtor or his creditors have no funds. In any case, the legal proceedings are stopped if there is no money to pay the financial manager.

Important! The insolvency case of a citizen or private entrepreneur can be stopped at any stage due to lack of funds (clause 22 of the Resolution of the Plenum of the Supreme Court No. 45).

The court reviews the materials of each case and decides to terminate the procedure or not. Here are examples from practice.

1. The Arbitration Court of the Rostov Region terminated the bankruptcy case (No. A53-2413/16). The court explained that the pensioner does not have enough funds to pay for the services of a financial manager. Her only income is her pension. The pension amount does not reach the minimum subsistence level established in the region.

2. The Arbitration Court of the Kemerovo Region found that lenders are abusing their rights (case No. A27-2165/2016). Creditors tried to bankrupt the couple. The transfer of money is confirmed by a receipt. The court concluded that creditors could not lend 900 thousand rubles to debtors. The lender's income statements show that they simply could not have had that kind of money. Therefore, there are no grounds for recognizing spouses as insolvent borrowers.

3. If the financial manager does not agree to handle the case, then the insolvency procedure can be terminated. This conclusion was made by the Arbitration Court of the Novgorod Region (case No. A44-8644/2015). The debtor tried to find an arbitration manager, but was unable to do so. None of the self-regulatory organizations (SROs) provided a manager to handle the case. The applicant asked the court to find a manager. But here, too, trouble awaited him. The third SRO also refused to provide a manager to handle the case. While they were looking for a financial manager, the deadline for considering the bankruptcy case had expired. So the court stopped the proceedings.

Examples show that there are many pitfalls in bankruptcy law. If you do not know the intricacies of the procedure, then there is a risk that bankruptcy will be terminated. This means that the debtor will never be able to get rid of his obligations. Penalties will continue to accrue, and the amount of debt will grow every day.

This is why it is so important to contact a bankruptcy lawyer. The lawyer will assess the prospects of the case and provide advice. The participation of the financial manager in the case is guaranteed if a lawyer is involved in the case. This means that the judge will have no reason to refuse to consider the case.

At any stage of consideration of a bankruptcy case, a settlement agreement can be concluded

Sometimes it happens that creditors understand: there is no point in continuing to spend money on the debtor’s bankruptcy. There may be various reasons for this. For example, the financial manager is inactive or the borrower has no funds. In other words, the insolvency procedure becomes meaningless.

Important! Entering into a settlement agreement is a way to end insolvency proceedings. The rules for signing the agreement were established by Art. 150 Federal Law “On Insolvency”.

4 rules for signing a settlement agreement

1. The document is signed at any stage of the consideration of the case.

2. Third parties may take part in signing the agreement. If a third party takes part, this means that he takes on the rights and responsibilities. For example, it is not the borrower himself who will repay the loan to the bank, but his guarantor.

3. The arbitration court approves the agreement.

4. The court issues a ruling to terminate the citizen’s insolvency case.

In the settlement agreement, the parties indicate the conditions under which the case is terminated. For example, the lender believes that the financial manager is not earning his money. Deliberately delays the process and does not try to collect money from the debtor. This means that the time has come to sign a settlement agreement. An agreement can establish that the debtor pays for the services of the manager, and this is where the legal debate ends. By the way, after signing an agreement, the parties must fulfill it. It is impossible to unilaterally refuse the obligations assumed under the agreement (clause 6 of Article 150 of the Federal Law “On Insolvency”).

It will not be possible to sign a settlement agreement if one lender is ready to renounce its claims, while the others continue to insist on theirs. According to Art. 57 of the Federal Law “On Insolvency”, proceedings can be terminated if all creditors renounce their claims.

To terminate bankruptcy, you need to file a petition with the court.

Court proceedings are carried out according to the rules established by procedural legislation. This means you cannot simply shake hands with creditors and end the dispute.

Article 57. Grounds for termination of bankruptcy proceedings

The procedure must be carried out correctly. A petition is sent to the court with a request to discontinue the consideration of the case.

6 information to be indicated in the application:

· name of the court;

· last name, first name and patronymic of the applicant;

· reasons for contacting;

· norms of law that serve as justification for filing an application;

· date and signature;

· necessary applications.

If the procedure is followed, the court will grant the request. Then the debtor will not become bankrupt, because the procedure will be terminated. At first glance, it seems that everything is simple: draw up a document, file a lawsuit, and the procedure is terminated. In reality, the insolvency procedure has many nuances. The court may reverse its decision if it is discovered that the law has been violated. A judge cannot approve a settlement if it is not economically feasible. For example, some creditors receive the money they are owed, while others never see anything from the debtor. In this case, the case may be sent for a new trial. This is why it is important to contact a bankruptcy lawyer promptly. The lawyer will competently draw up a petition, settlement agreement, and other documents. By the way, legal advice will help not only debtors, but also creditors. Reasons for contacting a lawyer: to reduce the costs of a bankruptcy case, to avoid annoying mistakes when drawing up documents and to develop competent tactics in a bankruptcy case.

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Is the termination of bankruptcy proceedings of a legal entity in the absence of funds sufficient to reimburse legal costs for the procedures applied in the bankruptcy case, including the costs of paying remuneration to the insolvency administrator, grounds for liquidation of this legal entity?

Having considered the issue, we came to the following conclusion:

Termination of bankruptcy proceedings due to insufficient funds to reimburse court costs for the procedures applied in the bankruptcy case, including the costs of paying remuneration to the insolvency administrator, is not grounds for liquidation of a legal entity.

Rationale for the conclusion:

In accordance with paragraph eight of paragraph 1 of Art. 57 of the Federal Law of October 26, 2002 N 127-FZ “On Insolvency (Bankruptcy)” (hereinafter referred to as the Bankruptcy Law) in the absence of funds sufficient to reimburse legal expenses for the procedures applied in the bankruptcy case, including expenses for payment of remuneration to the arbitration manager, the arbitration court terminates the bankruptcy proceedings.

Consequences of termination of bankruptcy proceedings

According to paragraph 2 of the same article, in this case the consequences of termination of bankruptcy proceedings established by Art. 56 of the Bankruptcy Law, unless otherwise provided by this federal law.

In turn, Art. 56 of the Bankruptcy Law establishes that the adoption by an arbitration court of a decision to refuse to declare a debtor bankrupt is the basis for the termination of all restrictions provided for by this federal law and which are the consequences of accepting an application to declare a debtor bankrupt and (or) introducing supervision.

Consequently, the termination of bankruptcy proceedings on the basis of paragraph eight of paragraph 1 of Art. 57 of the Bankruptcy Law entails the termination of all statutory restrictions associated with this procedure.

Liquidation of a legal entity is a consequence of declaring it bankrupt (Clause 1, Article 65 of the Civil Code of the Russian Federation). Termination of bankruptcy proceedings due to insufficient funds to reimburse legal expenses is not grounds for liquidation. In such a situation, the legal entity - the debtor continues to operate and formally in the future can be liquidated on the general grounds provided for in paragraph 2 of Art. 61 Civil Code of the Russian Federation. However, the practical implementation of this procedure is very doubtful, because, firstly, the creditor has the right, if there are appropriate grounds, to re-initiate bankruptcy proceedings against this debtor (resolution of the Eighth Arbitration Court of Appeal dated December 17, 2013 N 08AP-9547/13, Eighteenth Arbitration Court of Appeal dated 02/16/2010 N 18AP-435/2010), and secondly, within the meaning of the provisions of the second paragraph of clause 4 of Art. 62 and art. 65 Civil Code of the Russian Federation, clause 1, art. 224 of the Bankruptcy Law, if the value of the property of a liquidated legal entity is insufficient to satisfy the claims of creditors, it can only be liquidated as a result of declaring it bankrupt (see also Resolution of the Constitutional Court of the Russian Federation dated July 18, 2003 N 14-P).

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A monitoring procedure has been introduced in relation to the bankrupt, but a register of creditors has not been formed, although they exist and wish to be named in the register.

Termination of bankruptcy proceedings

The application for declaring the debtor bankrupt was filed by the debtor himself. The temporary manager held an introductory meeting (which was not the first meeting of creditors, since there were no claims of creditors included in the register) in order to comply with the ruling of the arbitration court to hold the first meeting of creditors. The court has scheduled a hearing to consider the issue of ending the monitoring procedure and moving to the next stage.

Can the court terminate bankruptcy proceedings due to the fact that the register of creditors at the observation stage was never formed, although the court knows that there are creditors?

The list of grounds for termination of bankruptcy proceedings is provided for in Art. 57 of the Federal Law of October 26, 2002 N 127-FZ “On Insolvency (Bankruptcy)” (hereinafter referred to as the Bankruptcy Law). As judicial practice notes, the provisions of this article indicate an exhaustive list of grounds on which the arbitration court has the right to decide to terminate bankruptcy proceedings (resolution of the FAS of the Volga District dated 02.06.2010 in case No. A12-5518/2009, FAS of the West Siberian District dated 08/17/2009 N F04-4847/2009(13075-A27-24)(12640-A27-24), FAS Far Eastern District dated 06/18/2009 N F03-2394/2009).

The Bankruptcy Law does not provide for such grounds for termination of bankruptcy proceedings as the absence of claims from bankruptcy creditors or authorized bodies declared or included in the register of creditors' claims during the monitoring procedure. Clause 1 of Art. 75 of the Bankruptcy Law determines that at the end of observation, the arbitration court issues a ruling on the introduction of financial rehabilitation or external management, or decides to declare the debtor bankrupt and open bankruptcy proceedings, or approves a settlement agreement and terminates bankruptcy proceedings based on the decision of the first meeting creditors. However, as follows from the provisions of this article, the absence of such a decision in itself is not an obstacle to the transition to other bankruptcy procedures. As stated in paragraph 2 of Art. 75 of the Bankruptcy Law, if the first meeting of creditors does not make a decision to apply one of the procedures used in a bankruptcy case, the arbitration court postpones consideration of the case within the period established by Art. 51 of this federal law, and obliges creditors to make an appropriate decision by the deadline established by the arbitration court. If it is not possible to postpone the consideration of the case within the mentioned period, the arbitration court decides to apply a different procedure applied in a bankruptcy case, including in the presence of signs of bankruptcy established by the Bankruptcy Law, and in the absence of grounds for introducing financial rehabilitation and external management, adopts decision to declare the debtor bankrupt and to open bankruptcy proceedings.

As the Plenum of the Supreme Arbitration Court of the Russian Federation noted in paragraph 26 of Resolution No. 29 dated December 15, 2004 “On some issues of the practice of applying the Federal Law “On Insolvency (Bankruptcy)”, when arbitration courts consider bankruptcy cases of a debtor initiated at the request of the debtor, if the first meeting of creditors did not make a decision to introduce one of the bankruptcy procedures, including due to the fact that the creditors did not present their claims in the manner prescribed by Article 71 of the Bankruptcy Law, or the meeting of creditors did not take place, the court postpones the consideration of the case within the limits. the period established by Article 51 of this federal law. If it is impossible to postpone the consideration of the case within the specified period, the arbitration court shall adopt one of the judicial acts specified in paragraphs three to five of paragraph 2 of Article 75 of the Bankruptcy Law.

Thus, the absence of claims included in the register of creditors’ claims based on the results of the monitoring procedure and the failure to hold the first meeting of creditors in itself is not grounds for terminating bankruptcy proceedings and does not prevent the arbitration court from assessing whether the debtor has signs of bankruptcy and making a decision on the application of another procedure applied in a bankruptcy case, upon completion of observation, in particular, on the opening of bankruptcy proceedings (see also question 11 of section II “Issues of application of bankruptcy legislation” of the resolution of the Presidium of the Federal Antimonopoly Service of the Central District dated April 24, 2008 N 5, resolution of the Fourteenth Arbitration Court of Appeal dated April 26, 2012 N 14AP-1933/12).

However, in the absence of claims declared and included in the register of creditors' claims during the observation period, arbitration practice in some cases comes to the conclusion that the debtor has not proven that he has signs of bankruptcy and bankruptcy proceedings should be terminated on the basis of paragraph five clause 1 art. 57 of the Bankruptcy Law, which, as a basis for such termination, provides for the recognition during observation that the applicant’s claims, which served as the basis for initiating bankruptcy proceedings, as unfounded, in the absence of other claims and recognized in the manner established by the Bankruptcy Law, corresponding to the provisions of Art. 6 of this federal law of creditor claims (see resolutions of the FAS of the North Caucasus District dated 08/28/2012 N F08-4431/12, FAS of the Far Eastern District dated 02/13/2009 N F03-163/2009, the Sixth Arbitration Court of Appeal dated 01/19/2012 N 06AP- 6104/11, Seventh Arbitration Court of Appeal dated July 24, 2009 N 07AP-4388/09).

Thus, the adoption by the arbitration court of a decision to terminate bankruptcy proceedings in the present situation is not excluded. We believe that the decision that the arbitration court will make on this issue will depend on the availability of evidence that the debtor, at the end of observation, still has signs of bankruptcy. Consequently, the possibility of terminating bankruptcy proceedings will largely be determined by the arbitration court’s assessment of the factual circumstances relevant to the situation stated in the question, including the evidence provided that the debtor has signs of bankruptcy.

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Translated from Italian, the word “bankruptcy” means “broken bench.” This is due to the historical traditions of banking in this 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 repay debts to the state for mandatory payments or to borrowers. This situation occurs after it is recognized in the prescribed manner by the relevant state bodies.

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

Debtor's solvency

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

A person who assumes responsibility for fulfilling obligations to repay debts approaches the bankruptcy manager with a similar intention. The latter is obliged to reject similar requests from other persons within a week. If the approved person has not begun to take the appropriate actions or has not completed them in full by the end of the month, the decision is canceled.

Creditors are required to accept funds to pay the debt from any person, be it the debtor himself, the founders of the company, the owner of the assets or another party. If the person to whom the debt is owed does not fulfill its obligations to provide the necessary information and documentation within the established time frame, the funds are temporarily deposited into the notary's account.

Financial recovery of the debtor

The solvency of a company is one of the main parameters necessary for its successful operation and finding out the answer to the question of whether bankruptcy proceedings can be terminated. A monitoring system has been introduced in bankruptcy proceedings. Within ten days from the moment of its launch, the bankruptcy trustee holds a meeting of the founders in order to determine measures aimed at correcting the emerging financial situation. The list of events is approved based on voting. 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.

Managers may be offered the following measures:

• review of the personnel composition 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;
• replenishment of capital through additional contributions.

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

External management plan

If a company has reached bankruptcy proceedings, it means that not everything was going smoothly in its activities and that it was being managed ineffectively. Accordingly, she will not be able to get out of the debt hole 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? Hardly. Therefore, external control is introduced. It is mandatory in case of 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 about the timing and order of procedures, the amount and content of expenses.

Satisfaction of creditors' demands

The procedure for repaying debts to creditors is regulated by Article 64 of the Tax Code of the Russian Federation. The first to receive their payments are those to whom obligations arose before the start of the bankruptcy procedure; they are the priority 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, or settlements with the registry holder.

The first in line are those who are in debt due to harm to life and health. They are followed by payments for wages and interest for their delay, severance pay and remuneration 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 principal debts and interest on them are paid, and then:

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

After this, settlement of invalid transactions is carried out.

Repayment of debt with pledged property

If any transactions were supported by mortgaged property, then they must be sold. Seventy percent of the sale price is sent to a special bank account to pay off the debt on this transaction. Twenty percent of these funds are intended for settlements with creditors of the first and second priority. The remainder goes to legal costs and management fees.

Grounds for termination of office work

The procedure for terminating a bankruptcy case is regulated by Art. 57 Federal Law 127 “On insolvency (bankruptcy)”. The authorized body for such proceedings is the arbitration court.

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

• 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 of claims by creditors.
• Fulfillment of obligations to creditors in full.
• Inability to pay expenses associated with court proceedings, including funds paid to the insolvency practitioner.

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

Petition

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

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

Creditors can also request closure of the case based on the results of consideration of the arbitration manager’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 to the application by the person applying to the court.

Application form

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

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

Declaring individuals and legal entities bankrupt is no longer something out of the ordinary. Sometimes this is the only possible way out of the current situation. Most often, such cases are handled by lawyers specializing in this area. You can see a large number of comments and answers to questions on bankruptcy of individuals in the public domain on the Internet. persons and legal entities persons

For example, one of the specialists explains the legality of the creditor filing a repeated application against the debtor. This is possible if the organization has not been liquidated and its records have been terminated. If the creditors' demands are not satisfied, any of them may apply to declare the debtor bankrupt.

If the case for declaring an enterprise bankrupt is terminated, then the entity restores its rights to 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.

Citizens' bankruptcy cases are not always brought to their logical conclusion. The grounds for terminating a bankruptcy case are established by Art. 57.

Once the trial is terminated, it means that the debtor does not face the consequences provided for by the Federal Law “On Insolvency”.

To terminate the procedure, the debtor and his creditors must sign a settlement agreement. It states that the parties have no claims against each other.

There is another basis for terminating insolvency proceedings. The debtor does not have the financial ability to continue paying for the procedure.

There are six grounds for terminating a bankruptcy case

You can't just stop a trial. There are six reasons for stopping production:

1. The financial situation of the debtor has improved.

2. The parties signed a settlement agreement.

3. The court found that the lenders' demands were illegal.

4. The lenders decided to abandon their claims.

5. The debtor managed to pay off his debts to all creditors.

6. There are no funds to finance a bankruptcy case. It does not matter: the debtor or his creditors have no funds. In any case, the trial is stopped if there is no money to pay.

Important! The insolvency case of a citizen or private entrepreneur can be stopped at any stage due to lack of funds (clause 22 of the Resolution of the Plenum of the Supreme Court No. 45).

The court reviews the materials of each case and decides to terminate the procedure or not. Here are examples from practice.

1. The Arbitration Court of the Rostov Region terminated the bankruptcy case (No. A53-2413/16). The court explained that the pensioner does not have enough funds to pay for the services of a financial manager. Her only income is her pension. The pension amount does not reach the minimum subsistence level established in the region.

2. The Arbitration Court of the Kemerovo Region found that lenders are abusing their rights (case No. A27-2165/2016). Creditors tried to bankrupt the couple. The transfer of money is confirmed by a receipt. The court concluded that creditors could not lend 900 thousand rubles to debtors. The lender's income statements show that they simply could not have had that kind of money. Therefore, there are no grounds for recognizing spouses as insolvent borrowers.

3. If the financial manager does not agree to handle the case, then the insolvency procedure can be terminated. This conclusion was made by the Arbitration Court of the Novgorod Region (case No. A44-8644/2015). The debtor tried to find an arbitration manager, but was unable to do so. None of the self-regulatory organizations (SROs) provided a manager to handle the case. The applicant asked the court to find a manager. But here, too, trouble awaited him. The third SRO also refused to provide a manager to handle the case. While they were looking for a financial manager, the deadline for considering the bankruptcy case had expired. So the court stopped the proceedings.

Examples show that there are many pitfalls in bankruptcy law. If you do not know the intricacies of the procedure, then there is a risk that bankruptcy will be terminated. This means that the debtor will never be able to get rid of his obligations. Penalties will continue to accrue, and the amount of debt will grow every day.

That's why it's so important to contact. The lawyer will assess the prospects of the case and provide advice. The participation of the financial manager in the case is guaranteed if a lawyer is involved in the case. This means that the judge will have no reason to refuse to consider the case.

At any stage of consideration of a bankruptcy case, a settlement agreement can be concluded

Sometimes it happens that creditors understand: there is no point in continuing to spend money on the debtor’s bankruptcy. There may be various reasons for this. For example, the financial manager is inactive or the borrower has no funds. In other words, the insolvency procedure becomes meaningless.

Important! Entering into a settlement agreement is a way to end insolvency proceedings. The rules for signing the agreement were established by Art. 150 Federal Law “On Insolvency”.

4 rules for signing a settlement agreement

1. The document is signed at any stage of the consideration of the case.

2. Third parties may take part in signing the agreement. If a third party takes part, this means that he takes on the rights and responsibilities. For example, it is not the borrower himself who will repay the loan to the bank, but his guarantor.

3. The arbitration court approves the agreement.

4. The court issues a ruling to terminate the citizen’s insolvency case.

In the settlement agreement, the parties indicate the conditions under which the case is terminated. For example, the lender believes that the financial manager is not earning his money. Deliberately delays the process and does not try to collect money from the debtor. This means that the time has come to sign a settlement agreement. An agreement can establish that the debtor pays for the services of the manager, and this is where the legal debate ends. By the way, after signing an agreement, the parties must fulfill it. It is impossible to unilaterally refuse the obligations assumed under the agreement (clause 6 of Article 150 of the Federal Law “On Insolvency”).

It will not be possible to sign a settlement agreement if one lender is ready to renounce its claims, while the others continue to insist on theirs. According to Art. 57 of the Federal Law “On Insolvency”, proceedings can be terminated if all creditors renounce their claims.

To terminate bankruptcy, you need to file a petition with the court.

Court proceedings are carried out according to the rules established by procedural legislation. This means you cannot simply shake hands with creditors and end the dispute. The procedure must be carried out correctly. A petition is sent to the court with a request to discontinue the consideration of the case.

6 information to be indicated in the application:

· name of the court;

· last name, first name and patronymic of the applicant;

· reasons for contacting;

· norms of law that serve as justification for filing an application;

· date and signature;

· necessary applications.

If the procedure is followed, the court will grant the request. Then the debtor will not become bankrupt, because the procedure will be terminated. At first glance, it seems that everything is simple: draw up a document, file a lawsuit, and the procedure is terminated. In reality, the insolvency procedure has many nuances. The court may reverse its decision if it is discovered that the law has been violated. A judge cannot approve a settlement if it is not economically feasible. For example, some creditors receive the money they are owed, while others never see anything from the debtor. In this case, the case may be sent for a new trial. This is why it is important to contact a bankruptcy lawyer promptly. The lawyer will competently draw up a petition, settlement agreement, and other documents. By the way, it will help not only debtors, but also creditors. Reasons for contacting a lawyer: to reduce the costs of a bankruptcy case, to avoid annoying mistakes when drawing up documents and to develop competent tactics in a bankruptcy case.

Bankruptcy is the inability of a debtor, established by a judicial authority, to repay financial obligations to creditors, including monetary obligations, payment of benefits, compensation of employees, payment of taxes, fees, payments to pension and insurance funds. Bankruptcy is established in the process of arbitration proceedings. The debtor can be legal entities and citizens with and without individual entrepreneur status. Relations between subjects of civil obligations within the framework of bankruptcy are regulated by the Federal Law of October 26, 2002 N 127-FZ.
Termination of proceedings involves exit from bankruptcy and restoration of the debtor in his rights regarding property.

Grounds for terminating the bankruptcy process

The grounds for termination of bankruptcy proceedings are regulated by Art. 57 of the regulatory law. These include:
- restoration of the debtor's solvency. This basis relates to the stages of financial recovery and external management;
- conclusion of a settlement agreement by the participants in the process;
- repayment of monetary obligations to creditors included in the register;
- establishing the fact that the claims of the creditor - the applicant for bankruptcy of the person are unfounded;
- refusal of creditors to claim under the debtor’s obligations,
- insufficient funds to pay court costs, as well as to pay the remuneration of a court-appointed administrator, etc.
It should be noted that this article is dispositive in nature, allowing the list of grounds to be supplemented with other legislation governing insolvency issues.
Yes, Art. 125 of this law contains another basis for terminating the bankruptcy process, namely: payment of financial claims against the debtor at the stage of bankruptcy proceedings by third parties.

Consequences of termination of the procedure

Like any legal action, the termination of this procedure is accompanied by corresponding consequences, including in the form of the termination of all restrictions that occurred in connection with the court’s acceptance of the relevant application and/or the introduction of the observation stage, in connection with which:
- the rights of creditors to present their claims against the debtor in the general manner are restored;
- proceedings on disputes related to the financial obligations of the debtor, suspended at the request of the creditor, are resumed;
- suspended enforcement activities in relation to the debtor are resumed, including previously lifted restrictions on the debtor’s property are subject to restoration;
- the debtor’s legal capacity is restored for 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;
- restrictions for the governing bodies of the debtor, to which clause 3 of Art. 64 of the regulatory law in the observation stage prohibits the adoption of local acts on liquidation, reorganization, creation of representative offices or branches, etc.;
- the powers of the court-appointed administrator 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 a settlement agreement, within the framework of which the debtor is given an installment plan to pay the existing debt for all obligations to the declared creditors, as well as due to the lack of funds for further financing of the process.
The explanations contained in paragraphs 11 and 12 of the Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation dated June 22, 2012 are important for the practical implementation of the provisions on termination of bankruptcy proceedings. No. 35 “On some procedural issues related to the consideration of bankruptcy cases.” Thus, according to these clarifications, termination of proceedings within the framework of supervision in connection with the refusal of the creditors participating in the process from the stated claims is possible only after a 30-day period has passed from the date of publication of information about the introduction of supervision in relation to the debtor in order to inform creditors wishing to submit their claims. This means that you can avoid the introduction of bankruptcy proceedings by paying only the amount of debt included in the relevant register. Debts not included in the register of claims do not need to be paid to terminate bankruptcy.
Also noteworthy are the latest clarifications of the RF Armed Forces, contained in the Determination of the SCES 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 rub.) 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 dishonesty of persons participating in controversial legal relations.

Termination of a bankruptcy case is one of the most effective anti-crisis measures to prevent the complete ruin of an enterprise, preserve its assets and pay off creditors.

Reasons for termination

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A bankruptcy case can be completed if:

• in the course of or the solvency of the debtor has been restored;
• was concluded;
• the applicant’s claims, which led to the bankruptcy case, turned out to be unfounded;
• all creditors participating in the bankruptcy case withdrew their claims;
• all creditor claims were satisfied during the implementation of one of the;
• discontinued ;
• There are no funds necessary to compensate for legal expenses for the bankruptcy procedure.

Actions

Liquidation

The termination of bankruptcy proceedings due to a lack of funds to compensate for legal expenses for carrying out the procedures provided for in the case cannot be used as a basis for the liquidation of a legal entity.

Liquidation is triggered by declaring a legal entity bankrupt, and if proceedings are terminated due to a lack of funds, the legal entity acting as a debtor continues to function. Formally, it may be liquidated in the future using the general grounds provided for.

At the same time, in practice, the implementation of this procedure is complicated by the fact that, if there are proper grounds, the creditor has the right to initiate a second one.

In addition, if the value of the debtor’s property is insufficient to repay all claims to creditors, it can be carried out only on the condition that it is declared bankrupt.

Consequences of termination of insolvency proceedings

The domestic law provides for the responsibility of the manager, and sometimes the founder and the chief accountant, for actions or inactions recorded even before the bankruptcy procedure was started.

The consequences of terminating insolvency proceedings in the event of violation of the rules provided for by law can be very serious, including administrative, civil and even criminal liability.

Let's look at the possible types of violations and the penalties provided for them:

• Fictitious bankruptcy is a deliberately untrue declaration of a legal entity or individual entrepreneur as bankrupt. If there is no criminal component in such an action, officials are subject to an administrative fine, the amount of which is 5-10 thousand rubles, or are disqualified for a period from 6 to 36 months. In the event of major damage resulting from such an act, a fine of 100-300 thousand rubles or corresponding to salary or other type of income in 1-2 years. An alternative option is imprisonment up to 6 years plus a fine of up to 80 thousand rubles.
• – committing actions (or inaction) that obviously lead to the inability of a legal entity or individual entrepreneur to fulfill creditor claims in full. Penalties, in the absence of a criminal component, imply payment 5-10 thousand fine or disqualification for a duration up to 36 months. If such actions cause major damage, the fine increases. up to 200-500 thousand rubles, and the possible term of imprisonment is up to 6 years(plus fine up to 200 thousand rubles).
• An application not submitted by the debtor to the arbitration court presupposes the emergence of a head, founder, liquidation commission or other body responsible for managing the debtor for debts that arose after the deadlines provided for by law had expired. It must be remembered that the application must be sent to the arbitration court within a month from the moment the corresponding obligations arose. If, during the liquidation procedure, a legal entity has become insolvent or its existing property has become insufficient to pay off debts, the duty of the liquidation commission is to apply to the arbitration court with an application from the debtor within 10 day period from the moment signs of insolvency or insufficiency of property were identified.
• If the director or founder of the debtor, members of its management bodies or members of the liquidation commission, or the citizen-debtor himself violates any provisions of the Federal Law relating to insolvency, the obligation of the above-mentioned persons becomes to compensate for losses that were caused as a result of such violations.

Peaceful agreement

As the law states, a settlement agreement involves the implementation of one or more procedures to terminate bankruptcy proceedings. It is mainly necessary in order to create the financial stability of the debtor, improve his situation, and restore solvency.

A peace agreement is a deal concluded by the parties to resolve an existing dispute by providing each other with mutual concessions.

This agreement is beneficial to both the debtor and creditors. Thanks to it, the owner of the enterprise has the opportunity to prevent bankruptcy of the enterprise and preserve the assets on the balance sheet. In turn, for creditors such an agreement sometimes becomes the only real opportunity to get their funds back.

Advantages and disadvantages

Declaring a legal entity bankrupt is associated with a number of positive and negative aspects: