The fact of bankruptcy can be ascertained only judgment. The bankruptcy law under the insolvency (bankruptcy) means the inability of a debtor (enterprise or citizens) to satisfy the claims of creditors:
* Under liabilities (payment of goods, works, services);
* Obligatory payments to the budget and extra-budgetary funds (taxes, fees, and other fees.).
External signs of bankruptcy is the failure of the claims of creditors within three months from the date when they are due. Requirements for the debtor to exceed 500 times the minimum wage.
Past regulations in addition take into account the external signs and internal signs, based on accounting data. Currently, it abolished the need for analysis of the accounting documents in court.
Bankruptcy may be the result of a judicial decision or with the voluntary liquidation of the debtor and the official announcement of his bankruptcy (court procedure).
The meeting of creditors may apply to the court for the period to restore solvency (reorganization). In this case, the external control is introduced for 12 months.
Sanitation is holding reorganization measures with a view to recovery of the debtor through the provision of financial aid (or the owner of creditors), and / or postponement of debt.
Measures to restore the solvency of the debtor may be:
* Conversion of production;
* Closure of unprofitable facilities;
* Liquidation of accounts receivable;
* Sale of the property;
* Assignment of (selling them at public auction);
* Repayment by the owner;
* Sale of enterprise (business) is entirely at the auction and others.
If the court recognizes the debtor bankrupt, so-called open bankruptcy proceedings. This procedure aims to proportionate repayment of creditors, the debtor ads free of debts and carried out as a compulsory or voluntary liquidation. Professional consultation can be provided by http://mybkhelp.com/
As to the court, and at any stage of the proceedings the insolvency court between the debtor and the creditor may be entered into a settlement agreement. Creditors may grant an extension and / or installment payments due, discounts on debt, if they see an opportunity to restore normal financial condition. Debtor may be asked to exchange debt for shares or other commitments. This exchange process is called reorganization of the capital structure.