Consequences of the termination of bankruptcy proceedings. What are the Consequences of the Termination of Insolvency Proceedings Consequences of the Termination of Insolvency Proceedings

In addition to the petition, the applicant must provide the court with documents serving as confirmation of the grounds, namely:

a report drawn up by an external manager;
certificate of state registration of a legal entity;
a document that allows one to judge whether the applicant has the right to go to court;
minutes of the creditors' meeting;
register of creditor claims.

Liquidation As a basis for the liquidation of a legal entity, the termination of bankruptcy proceedings due to lack of funds to compensate for court costs for carrying out the procedures provided for in the case cannot be used. Liquidation is launched as a result of the declaration of a legal entity bankrupt, and upon termination of proceedings due to a lack of funds, the legal entity acting as a debtor continues to function.

Article 57. Grounds for termination of bankruptcy proceedings

Important

This list is not only incomplete, but also does not allow, often, to cope with the crisis state of the enterprise. Indeed, the measures proposed by bankruptcy legislation concern, first of all, operations with assets and only slightly affect anti-crisis measures with the capital of the organization.

The Bankruptcy Plus company considers the activities of the enterprise as a whole, highlighting among the measures included in the anti-crisis package: In each given situation, it is possible to introduce a different package of anti-crisis measures, which may include both operations with assets, with the management of the enterprise, and with liabilities - capital and liabilities. Termination of a bankruptcy case can be one of the measures of anti-crisis management.

Bankruptcy proceedings: formal termination

Having considered the issue, we came to the following conclusion: Termination of the bankruptcy proceedings due to insufficient funds to reimburse court costs for carrying out the procedures applied in the bankruptcy case, including the costs of paying remuneration to the insolvency administrator, is not a basis for liquidating the legal faces. Justification of the conclusion: In accordance with the eighth paragraph of cl.
1 tbsp. 57 Federal law dated 26.10.2002 N 127-FZ "On insolvency (bankruptcy)" (hereinafter referred to as the Bankruptcy Law) in the absence of funds sufficient to reimburse court costs for carrying out the procedures used in the bankruptcy case, including the costs of paying remuneration to the arbitration to the receiver, the arbitration court shall terminate the bankruptcy proceedings. According to cl.

Topic: termination of bankruptcy due to lack of financial

Attention

How to Dismiss a Bankruptcy Case? The general grounds for terminating a bankruptcy case are established by Article 57 of the Bankruptcy Law and these include the following: The most commonly used are the conclusion of an amicable agreement, which allows the payment of debt in installments for a long time, as well as the repayment of creditors' claims. In addition, indirect methods of terminating a case are often used, for example, as a result of the “redemption” of claims for tax payments.

One way or another, the construction of a strategy for terminating a bankruptcy case is based on actual circumstances, taking into account the available opportunities and resources.

What are the consequences of the termination of insolvency proceedings

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: Among the advantages it is worth highlighting:

Formal repayment of all debts, the inability of banking institutions and collection organizations to demand execution on loans.
Restricting travel abroad is possible only when one procedure is carried out - the sale of property, while the standard collection provides for an automatic ban on traveling abroad if the amount of debt exceeds 10 thousand rubles.
The introduction of the first bankruptcy procedure makes it impossible for creditors to further file claims regarding the collection of debts on loans.

The presence of the debtor during the bankruptcy procedure under the protection of the bankruptcy law, which excludes the application of compulsory claims for payment of the loan, claims in courts of general jurisdiction, any types of illegal actions on the part of banks.

Drawing up a debt restructuring plan that takes into account family and life circumstances the debtor.

The list of negative consequences of declaring bankruptcy includes:

sale of most of the property, including an apartment purchased with a mortgage;
the impossibility of writing off all debts;
the emergence of a number of financial and legal restrictions;
the length of the bankruptcy procedure, which can last for years;
significant cost of the procedure.

Internal signs of bankruptcy of an enterprise can be easily calculated using balance sheet and a report on the movement of working capital.

Consequences of termination of bankruptcy proceedings

Consequences of the termination of a bankruptcy case
Crisis management

Does the loss of the status of an individual entrepreneur by the debtor after filing an application for declaring him bankrupt to the court and before the decision on the bankruptcy case is terminated? Answer: The loss of the status of an individual entrepreneur by the debtor after the filing of an application for declaring him bankrupt and before the decision on the bankruptcy case is made does not entail the termination of the proceedings, however, upon declaring the debtor bankrupt in this case, the consequences envisaged for individuals registered in as individual entrepreneurs, in the form of the loss of state registration of a citizen as an individual entrepreneur, as well as cancellation of licenses issued to him for carrying out certain types of entrepreneurial activity.

Consequences of Termination of Insolvency Proceedings

Bankruptcy Law, unless otherwise provided by this federal law. In turn, Art. 56 of the Bankruptcy Law establishes that 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.
Consequently, the termination of bankruptcy proceedings on the basis of paragraph eight, clause 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 (cl.
1 tbsp. 65 of the Civil Code of the Russian Federation).
The termination of the bankruptcy proceedings due to insufficient funds to reimburse court costs is not a ground 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 cl.
2 tbsp. 61 of the 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 the bankruptcy proceedings of this debtor (resolution of the Eighth Arbitration Court of Appeal of 12/17/2013 N 08AP-9547/13, of the Eighteenth Arbitration Court of Appeal from 16.02.2010 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 of the Civil Code of the Russian Federation, clause 1 of Art.

In the event that the debtor is unable to pay off the existing debt even in this way, they resort to selling his property at an auction.

It is also worth considering that the consequences of the termination of insolvency proceedings do not imply the elimination of absolutely all obligations of the debtor. In particular, creditor claims for current payments, for the payment of alimony, related to compensation for damage to health or harm to life, must certainly be recovered.

Final papers and petition Any interested person may file a petition with the arbitration court to express certain requirements regarding any action of the court.

This statement will enable the debtor to prevent bankruptcy, provided that the applicant provides good reasons for this.

Consequences of Terminating a Bankruptcy Case Due to Lack of Funds

conclusion of an amicable agreement;
recognition of the applicant's claims, on the basis of which the bankruptcy case was initiated, as unreasonable during the observation (provided that there are no other declared creditors' claims indicating signs of the debtor's bankruptcy);
the refusal of all creditors from their claims or the requirement to declare the debtor bankrupt;
repayment of all claims of "registered creditors" during any procedure in a bankruptcy case;
lack of funds to compensate for court costs for conducting proceedings in a bankruptcy case, including the costs of remuneration for an insolvency practitioner;
other cases, provided by law N 127-FZ.

Note that information on the termination of bankruptcy proceedings is subject to mandatory publication (clause 6 of article 28 of Law N 127-FZ).

Termination of bankruptcy proceedings is considered almost the most effective anti-crisis measure, as a result of which the complete bankruptcy of the organization will be prevented, its assets will be preserved and debts on credit obligations will be repaid.

Grounds for termination

A bankruptcy case is terminated when:

during external management or the financial recovery was able to restore the borrower's solvency;
the parties came to a mutual agreement and decided to conclude a peace agreement;
the claims of the plaintiff, in view of which the case on declaring the object bankrupt was opened, turned out to be unfounded;
all creditors who participated in the case withdrew their own claims;
any claims of creditors were satisfied during one of the bankruptcy processes;
completed bankruptcy proceedings in connection with the payment of the debt;
there is no money that is needed to reimburse legal costs for the bankruptcy process itself.

Discontinuation procedure

Before deciding on the specific steps to take, you need to know how to stop the case. It is worth noting that the most common way to pay off debt is to conclude an amicable agreement. This is how it turns out to stretch the payment of debt for a considerable time, or when paying off creditors' claims. Sometimes indirect methods are used to stop the case, in particular, the redemption of claims.
Closing financial claims. Usually, for this purpose, the court decides to restructure the debt for a longer period. If the borrower cannot even pay off the debt in this way, the stage of selling his property begins. It should be borne in mind that if the proceedings are completed, this does not mean that all debts have been paid off. Claims for alimony payments, creditors for current payments, transfers required to compensate for harm to health are subject to collection without fail.
Collection of final documentation and application. To identify their own requirements in relation to any person, the person concerned must submit a petition. It is sent to the arbitration court. There are many cases when this particular statement became the reason why bankruptcy was not allowed. The main thing for the applicant is to provide strong evidence of this. In addition to the application itself, the borrower usually submits a package of documentation to the court. It includes:
- a report that was drawn up by the manager from the outside;
- certificate confirming the existence of state registration of legal entities faces;
- a document confirming that the applicant has the right to apply to the court with this issue;
- minutes of the meeting of creditors;
- list of lenders' requirements.

Liquidation

The reason for the liquidation of the company should not be the completion of office work due to the lack of money to pay the legal costs necessary for the conduct of the process.

Liquidation begins due to the recognition of the company as insolvent. As for the termination of production, due to the lack of money, the borrower continues to work as a legal entity. Then it can be eliminated using general reasons that are detailed in the Civil Code.

V real life liquidation is a rather complicated process, because if there are certain reasons, the lender has the right to start a second bankruptcy case. However, signs of deliberate bankruptcy of a legal or natural person may not be found if the manager is professional enough in his work.

Note!
It is possible to liquidate a legal entity, the funds and assets of which are not enough to pay off obligations to creditors, only through bankruptcy.

Consequences of the termination of production

The legislation of our country provides for a certain responsibility of the head of the enterprise, and sometimes the founder and the chief accountant for actions (inaction) during the bankruptcy procedure (and before it).

If the rules of the law are violated, the consequences will be quite serious. The penalty is assigned depending on the specific circumstances. Responsibility in this case may be:

criminal;
civil;
administrative.

Process violations and punishments

Fictitious insolvency is characterized by false information about the financial condition of the organization. In this case, administrative fines are imposed on officials of up to 10,000 rubles, or they face disqualification from six months to 3 years. In the case of especially large damage, the fine can be up to 300,000 rubles, or it is calculated on the basis of wages for 2 years. An alternative in this case could be imprisonment for up to 6 years and a fine of up to 80,000 rubles.
Intentional insolvency is characterized by an action (inaction) that intentionally led to the inability to meet its obligations. The penalties are the same, with the difference that for special large sizes the fine can be up to 500,000 rubles, and the fine for imprisonment can be up to 200,000 rubles.
If the borrower does not submit an application to arbitration, subsidiary liability of the founder, chief, manager, or liquidation commission arises. It is calculated based on the losses incurred due to this violation.

Peaceful agreement

Within the framework of the peace agreement, certain procedures are being carried out aimed at terminating the proceedings on the case. Basically, it is needed to restore financial independence a citizen or legal entity, to restore the ability to fulfill their own obligations.

Controversial issues in this case are regulated by negotiations and giving each other some concessions. Usually, this method of stopping production is beneficial to both parties. The owner of a company on the brink of bankruptcy can prevent its collapse and preserve assets. Lenders get the only real opportunity to get their money back.

Features of production discontinuance?

You can complete the bankruptcy proceedings at different stages.

At the end of the production, you need to complete all the steps that you need to go through in the bankruptcy proceedings. This is drawing up the bankruptcy estate, transferring money to creditors, transferring documentation to the archive, submitting a balance sheet, etc. If all these actions are completed, the procedure is completed, and the borrower is excluded from the Unified State Register of Legal Entities.
In supervision, it is possible to stop proceedings only if the limitation period for the presentation of claims by creditors has expired.

Advantages and disadvantages of discontinuing production

As for the advantages of the procedure, the following factors can be distinguished:

in practice, all existing debts are extinguished, therefore, neither banking organizations, nor collection agencies have the right to demand further fulfillment of credit obligations;
restriction of travel abroad can be a consequence of only one process - the sale of property, while within the framework of the usual punishment there is a ban on leaving the country if the amount of debt exceeds 10,000 rubles;
during the initial bankruptcy procedure, creditors are not entitled to file claims for the collection of debts for their arrears. The only thing they have the right to do is to declare the need for their inclusion in the list of debtors;
a debt restructuring plan is drawn up, which takes into account the life and family circumstances of the borrower. In other words, the debtor is being met halfway;
during the bankruptcy procedure, the borrower is protected by the laws of our country. What does it mean? In case of bankruptcy, you cannot file claims against the debtor in a court of general jurisdiction, demand payment of debt, and use other illegal actions in this case.

But there are negative sides during the bankruptcy procedure.:

sale of almost all property of the borrower, including real estate, taken out in the mortgage;
the inability to write off all debt obligations in full;
the emergence of restrictions on rights and financial activities;
the time of the bankruptcy is very prolonged, the procedure can last several years;
a lot of money will have to be paid for bankruptcy, and the lack of funding is already limited financial situation the debtor does not allow this to be done in all cases.

Conclusion

So, the termination of the bankruptcy proceedings is clear to us, what's next? After the procedure, all obligations of the debtor are terminated, and the powers are returned. That is why this procedure has great importance for the borrower. If the debtor cannot find funds to carry out this procedure, it is necessary to contact the surety.

In the wording of this article, the legislator proceeds from the open nature of the list of grounds for terminating bankruptcy proceedings, provided that other grounds may be contained in other provisions of the Bankruptcy Law.

Directly listed in paragraph 1 of Art. 57 of the Bankruptcy Law, the grounds can be roughly divided into the following:

Associated with the restoration of solvency,

Related to the satisfaction of creditors' claims or the refusal of creditors from the declared claims,

With the achievement of an agreement on a new procedure for repayment of the debt, with the registration of an amicable agreement (paragraphs 4, 6 and 7, clause 1 of article 57 of the Law);

Associated with the recognition as unfounded the claims of the applicant-creditor,

Associated with the lack of funds for further financing of the bankruptcy proceedings.

The restoration of the debtor's solvency, as well as the conclusion of an amicable agreement are less common, which is explained by the infrequent use of these procedures.

In practice, the most common termination of bankruptcy proceedings, on the basis of lack of funds for further financing of the procedure.

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The bankruptcy law does not contain uniform and systematized provisions on the method and procedure for satisfying claims or the procedure for refusing creditors' claims. Also, there are no restrictions on the repayment of claims.

However, all these issues have been resolved in judicial and arbitration practice.

In particular, the legal approach to the termination of bankruptcy proceedings in accordance with paragraphs 6 and 7 of paragraph 1 of Art. 57 of the Bankruptcy Law is formulated in clause 11 of the Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation of June 22, 2012 N 35 "On some procedural issues related to the consideration of bankruptcy cases."

In clause 11 of the Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation No. 35, the following legal position is formulated: “the court shall terminate the bankruptcy proceedings in the event that all creditors participating in the bankruptcy case refuse from the stated claims. Within the meaning of this provision in the observation procedure, the termination of proceedings on this ground is possible only after the expiry of the time limit for filing claims (paragraph 1 of Article 71 of the Law). If by the time the court considers in the course of any bankruptcy procedure the issue of terminating the proceedings on the case under consideration, there are claims presented but not yet considered, then for the application of this basis, it is sufficient to waive the claims of all creditors already included in the register, and no waiver is required. claims declared but not included in the register ”.

Thus, it follows from the above legal norms that in order to prevent the bankruptcy procedure from being introduced against the debtor, it is sufficient for the latter to pay only the principal amount of the debt. The rest of the debt that no longer meets these criteria does not need to be paid.

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In this case, the arbitration court will issue a judicial act on the refusal to declare the debtor bankrupt, which in its consequences essentially corresponds to the judicial act on the termination of the proceedings on the basis of payment of the entire debt.

Obviously, the lack of funds sufficient to reimburse the court costs of carrying out the procedures applied in the bankruptcy case, including the costs of paying the insolvency commissioner, is a justified ground for the termination of the bankruptcy case.

In fact, the continuation of the relevant procedures could threaten both creditors and the bankruptcy commissioner.

It follows from the above that the practical possibilities to terminate the bankruptcy case are:

Refusal of all creditors participating in the bankruptcy case from the declared claims;

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Satisfaction of the claims of all creditors included in the register of claims.

However, in practice, these options also turn out to be difficult to implement.

In the light of the clarifications of the Supreme Arbitration Court of the Russian Federation, after the establishment of all the declared claims of creditors, it is more expedient to conclude a collective amicable agreement subject to court approval.

The full repayment of creditors 'claims is indisputable, however, the main main difficulty in terminating bankruptcy proceedings, due to the specifics of these cases, is the difficulty of attracting resources for a one-time satisfaction of all creditors' claims.

As you can see, it is relatively easy to initiate the process of the debtor's bankruptcy, but it is rather difficult to terminate it.

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Grounds for Terminating Bankruptcy Proceedings

A wide range of legal remedies act as elements related to the mechanisms of legal governance applied to public relations... They are not a single category in the legal literature.

The only approach to determining the means of protection is their choice depending on the very features of the relationship, which makes it possible to classify them according to the industry basis.

Considering legal remedies as a category applicable to the process of terminating bankruptcy proceedings, we can note their competition-legal direction. In this case, they are designed to protect the interests of both sides of production.

Termination of bankruptcy proceedings can be a tool to combat unjustified bankruptcy, unfair use of the procedure itself for personal gain.

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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.

We will tell you how to file a bankruptcy notice in the media and why you need it.

Reasons for the termination of bankruptcy proceedings

The court can terminate the proceedings opened in the framework of the bankruptcy case only after receiving the reporting documentation accompanying the bankruptcy proceedings.
One of the reasons for such termination is the lack of funds that can be used to administer justice and pay the amount of remuneration due to the bankruptcy commissioner.
It is possible to stop production only when its actual completion requires additional procedures that entail a number of costs for which there are no funds.
As a result, the refusal of creditors to finance bankruptcy-related procedures entails the impossibility and inexpediency of further implementation of the measures established by bankruptcy proceedings, which entails the termination of proceedings.
Among other things, the legislator does not prohibit the early completion of the bankruptcy proceedings on the basis of the full achievement of the goals set by the production or due to the complete futility of further work.
The complete leveling of procedural decisions is threatened by the termination of proceedings upon completion of procedures related to bankruptcy.

In the event that the petition itself comes from the insolvency practitioner, in it he must refer to the data of the report and evidence confirming the impossibility of declaring the debtor bankrupt. Such evidence can be documents confirming the fact of full satisfaction of the requirements of the existing composition of creditors.

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The fulfillment of obligations by the debtor refers to the list of grounds for the termination of proceedings, which is indicated in Art. 53 FZ.

Claims can also come from creditors. In it, creditors can declare the need to stop production in view of the study of the data provided in the manager's report, which is determined by Art. 118 FZ.

The applicant is also vested with the right to apply for the termination of the proceedings.

Together with him, he is obliged to provide:

reporting documentation manager;
a document certifying the registration of the enterprise;
a document substantiating the right to appeal to the justice authorities;
minutes of the creditors' meeting;
claims made by creditors in the register.

Proceedings can be terminated at any stage of the trial, if the debtor and the creditor sign an amicable agreement.
The basis for such an agreement is the mutual concessions of the parties undertaken to end the dispute. In fact, an amicable agreement is one of the possibilities for a voluntary settlement of the situation by mutual expression of will.
The parties to this document are the debtor and the bankruptcy creditor or their combination. In addition to them, third parties can become participants, who are endowed with certain rights and obligations by the document.
The presence of several bankruptcy creditors means the need to make a decision on the conclusion of an amicable agreement at their meeting. The decision is taken by a simple majority. On behalf of the debtor, the debtor citizen himself, the head of the enterprise (during the supervisory procedure), the external manager (in the process of management from outside), the bankruptcy administrator (at the stage of bankruptcy proceedings) are responsible for the decision.
The document signed by the parties is submitted to the arbitration court for approval. The court is obliged to approve the agreement by the definition, which will terminate the judicial proceedings.
The settlement agreement can only be terminated in court if the debtor has not fulfilled its obligations in relation to at least a quarter of the creditors. After that, the parties can again go to trial within the boundaries of the new case.

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

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Conclusions on review

Bankruptcy cases are a separate type of litigation with a special procedural order.

The bankruptcy procedure itself is a certain system within which special means are applied to the debtor, allowing him to be declared bankrupt and satisfy the claims of creditors or restore a previously existing state of solvency.

Each of the stages of this procedure is endowed characteristic features and a certain circle of persons entering into the process, in addition to the permanent participants: the debtor and the creditor.

Court decisions on recognizing persons as insolvent are grounds for writing off debts that were not satisfied with the cash equivalent of the sold property belonging to the debtor. That is why the court must take measures to prevent criminal bankruptcy.

Consequences

Art. 56 of the Federal Law defines a list of consequences resulting from the termination of bankruptcy proceedings.

Is it possible to avoid the imminent bankruptcy of an individual - read here.

Methods for predicting bankruptcy of an enterprise are described here.

The consequences of the termination of bankruptcy proceedings are to terminate the entire range of restrictive measures related to the process of exercising the rights to use and dispose of property, as well as to restrict the debtor's freedom of movement abroad.

The rehabilitation, which is prescribed by the court decision, is aimed at improving financial condition the debtor and the resolution of disputes with the entire volume of creditors.

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Consequences of termination of bankruptcy proceedings

The grounds for terminating bankruptcy proceedings are as follows (clause 1 of article 57 of the Law of October 26, 2002 N 127-FZ - hereinafter Law N 127-FZ):

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restoration of the debtor's solvency in the course of financial rehabilitation or external administration;
conclusion of an amicable agreement;
recognition of the applicant's claims, on the basis of which the bankruptcy case was initiated, as unreasonable during the observation (provided that there are no other declared creditors' claims indicating signs of the debtor's bankruptcy);
the refusal of all creditors from their claims or the requirement to declare the debtor bankrupt;
repayment of all claims of "registered creditors" during any procedure in a bankruptcy case;
lack of funds to compensate for court costs for conducting proceedings in a bankruptcy case, including the costs of remuneration for an insolvency practitioner;
other cases provided for by Law N 127-FZ.

Note that information on the termination of bankruptcy proceedings is subject to mandatory publication (clause 6 of article 28 of Law N 127-FZ).

What does termination of bankruptcy proceedings mean?

The main consequence of the termination of bankruptcy proceedings is the termination of all restrictions that are introduced when accepting an application for declaring the debtor bankrupt and / or introducing supervision (clause 2 of article 57, article 56 of Law N 127-FZ). Among them are such restrictions as (clause 1 of article 63 of Law N 127-FZ):

the impossibility of satisfying the claims of the founder (participant) of the debtor organization on the allocation of a share or share in the debtor's property, if the founder (participant) wishes to withdraw from the founders (participants), as well as the impossibility of redemption or acquisition by the debtor of placed shares, payment of the actual value of the share or share;
impossibility of seizure by the owner of the debtor's property - unitary enterprise property that belongs to the debtor;
the impossibility of paying dividends, income by shares or shares, as well as the distribution of profits between the founders (participants) of the debtor;
other.

Moreover, it comes also on restrictions for the debtor's management bodies, which, in the course of observation, are not entitled to make decisions on reorganization, liquidation of the debtor, on the creation of branches and representative offices, on participation in associations, unions, holding companies, etc. (Clause 3 of Art. 64 of Law No. 127-FZ).

If we talk about the procedural consequences of the termination of the bankruptcy case, then the issuance of the corresponding judicial act by the court leads to the termination of the powers of the arbitration manager (clause 6 of article 83, clause 1 of article 123, clause 2 of article 127 of Law N 127-FZ).

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Termination of bankruptcy proceedings

Termination of bankruptcy proceedings means that the proceedings are closed.

This means that the ownership of the property will be restored, provided that:

all obligations will be fulfilled to the creditor;
an agreement is concluded between the creditor and the debtor on the absence of claims against each other.

Thus, the procedure allows the debtor to return to the ownership of his own assets, which could have been lost if the bankruptcy procedure was carried out in full.

What it is?

Termination of the bankruptcy process means the possibility of restoring ownership of the debtor's property.

In other words, this means that the debtor's insolvency proceedings are terminated in accordance with the Federal Law "On Bankruptcy" No. 127.

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Legislation

The process of terminating the bankruptcy procedure against the debtor is regulated by Article 57 of the Federal Law "On Insolvency".

The article establishes a dispositive list of grounds for termination of proceedings, which can be supplemented by other legislation governing insolvency issues.

Termination of bankruptcy proceedings

The most common reasons for terminating bankruptcy are:

This indicates that only with the possible restoration of solvency and settlement of debts, the procedure for recognizing a person as insolvent is terminated, and the debtor, thereby, went through the procedure of "rehabilitation" of the enterprise.

Thus, using the analysis of the company's activities, as well as building a successful strategy, you can get out of the bankruptcy process using the available opportunities and resources.

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Foundations

The Federal Law "On Insolvency", namely Article 57 contains a list of grounds on which the arbitration court can terminate bankruptcy proceedings:

by "improving" the activities of the enterprise or by external management, the debtor was able to restore solvency;
the debtor and the creditor entered into an amicable agreement;
the applicant has lost the need for the stated claims, which became the basis for the initiation of proceedings in the case;
creditors refused to declare the debtor bankrupt;
the debtor fulfilled everything according to the declared claims of the creditors during the bankruptcy process;
lack of funds, which would be sufficient to pay legal costs, including payment for the services of an insolvency administrator.

Procedure

The termination of the bankruptcy process is considered in the arbitration court at the place of residence of the debtor.

The court, when considering an insolvency case, may apply to the debtor the following methods of "rehabilitating" a legal entity so that it does not become bankrupt:

debt restructuring for a certain period;
sale of property;
signing of an amicable agreement with a creditor.

The bankruptcy commissioner can initiate the termination of proceedings if the debtor himself does not have the funds to pay court costs.

In addition to the manager, the creditor can also apply to the court with this requirement, but in this case he will have to pay all legal costs on his own.

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In this case, the interested parties must submit a petition to the arbitration court, indicating in it the grounds on which it is necessary to terminate the process.

After examining the stated requirements, the judge makes a determination that the earlier declared requirement to declare a person insolvent must be recognized as unfounded, imposing a moratorium on the performance of all obligations to creditors.

As a rule, the judge orders the restructuring of payments, however, if the debtor cannot pay off the debts:

the court declares such a person bankrupt;
additionally restricts him to travel outside the Russian Federation;
the property will be sold at a public auction.

In the latter case, this process will last about six months.

How is a debtor's transactions challenged in bankruptcy? See here.

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Petition

A petition is filed with the arbitration court by any interested person in order to express certain requirements for a certain action on the part of the court.

In this case, this application will provide an opportunity for the debtor to prevent the bankruptcy procedure, if the applicant indicates sufficient grounds for this.

If the bankruptcy commissioner submits the application, he must first of all refer to:

report;
grounds and evidence on which the debtor cannot be declared bankrupt (for example, the debtor satisfied the creditors' claims or the circumstances and grounds on which the initial application was filed have disappeared).

Taking into account the provisions of Article 57 of the Federal Law "On Insolvency", the court has the right to terminate the proceedings if the debtor has fulfilled all obligations to the creditors.

In addition, creditors have the right to declare the end of the proceedings on the basis of studying the report of the external manager by filing a petition with the court (Article 118, clause 3 of the Federal Law "On Insolvency").

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Guided by the above legislative act, as well as procedural legislation (Articles 41,125,126,223 of the Arbitration Procedure Code of the Russian Federation), the applicant has the right to declare the court to terminate the bankruptcy proceedings.

In addition to the petition, the applicant must provide the court with a list of evidence that will support the grounds.

These include the following documents:

external manager's report;
certificate of state registration of a legal entity;
a document confirming the right to go to court;
minutes of the meeting of creditors;
register of creditors' claims.

Sample application

When submitting an application to the court to terminate bankruptcy proceedings, the following must be indicated:

name of the court to which the document is submitted;
complete information about the creditor and the debtor, as well as the applicant;
the grounds according to which the applicant applies to the court;
case and production number;
an indication of the circumstances of the case;
a list of norms that govern this issue;
a list of the applicant's requirements;
date and signature of the applicant;
list of attached documents.

Sample bankruptcy termination petition here.

Free legal advice:

Thus, the termination of bankruptcy proceedings gives the debtor a chance not to become bankrupt and pay off all the obligations assumed by the creditors.

Guided by the provisions of this article, as well as legislative acts, you can exit the bankruptcy procedure by signing a settlement agreement or use debt restructuring.

A sample bankruptcy settlement agreement is here.

If all the above methods do not help pay off creditors, the court will be forced to:

declare a person bankrupt;
all property that he has to put up for auction.

However, if the creditors abandon their claims, then the bankruptcy process will be terminated.

Free legal advice:

How does the law on bankruptcy nat. persons? Read here.

How to view the unified state register of bankruptcy information? Details in this article.

Refusal is possible at any stage of the bankruptcy procedure of a legal entity or individual, as well as an individual entrepreneur (at the stage of "rehabilitation", external management, when opening bankruptcy proceedings).

Bankruptcy proceedings: formal termination

Termination of bankruptcy proceedings is one of the measures aimed at anti-crisis management of enterprises. Usually this is necessary for owners who started bankruptcy itself against their own will. Or in case the situation changes for the better. And the company is able to return to its normal activities.

What does termination of bankruptcy mean?

When the bankruptcy is said to end, the property is supposed to be returned to the possession of the former owner. But only if the following conditions are met.

Settlement with creditors in full, release from obligations.
The conclusion of an agreement between the parties that there are no claims.

Thus, the debtors are restored to the right of ownership of current assets. Which are lost in the event of the procedure completely.

When bankruptcy can be ended

Bankruptcy is terminated when the following reasons are used:

Lenders confirm that the debts have been paid off or are in the process.
Relevant peace agreements were signed.

The exit from the insolvency procedure is facilitated by analyzing the current state of the enterprise and building the most successful strategy.

About the grounds

There is a special Federal Law on Insolvency, which is dedicated to detailed description this phenomenon. Proceedings in connection with bankruptcy may be terminated by the arbitration court if the following conditions are met:

Solvency was restored by the debtor after going through all the financial recovery procedures.
The conclusion of an amicable agreement, the creditor and the debtor have agreed on a similar solution.
The applicant sees no need to continue making claims.
Refusal on the part of creditors from applications in which they require the debtor to be declared bankrupt.
While bankruptcy is underway, the debtor pays off with his creditors.
There are no funds at the expense of which it would be possible to cover at least part of the costs.

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:

Signing of settlement agreements with creditors.
Realization of property.
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:

He is awarded bankruptcy status.
Additional restrictions for those who are going to leave the country.
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.

The bankruptcy procedure is what it is, see this video:

Registration and preparation of the application

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

Reports.
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.

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:

Attached documents.
Date signed by the applicant.
List of requirements on the part of the applicant.
The list of norms responsible for regulating the issue.
Description of the circumstances of the case.
Number designation of a case or production.
The basis on which the appeal to the court itself was drawn up.
Complete data on all parties interested in the process.
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, taking into account all the necessary features. Only in this case the amicable agreement itself will be approved in court.

About the consequences

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

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

The list of warrants 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.

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.
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.

What is a settlement agreement in bankruptcy proceedings, this video will tell:

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.

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.

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

Financial question

The court can terminate the proceedings opened in the framework of the bankruptcy case only after receiving the reporting documentation accompanying the bankruptcy proceedings.
One of the reasons for such termination is the lack of funds that can be used to administer justice and pay the amount of remuneration due to the bankruptcy commissioner.
It is possible to stop production only when its actual completion requires additional procedures that entail a number of costs for which there are no funds.
As a result, the refusal of creditors to finance bankruptcy-related procedures entails the impossibility and inexpediency of further implementation of the measures established by bankruptcy proceedings, which entails the termination of proceedings.
Among other things, the legislator does not prohibit the early completion of the bankruptcy proceedings on the basis of the full achievement of the goals set by the production or due to the complete futility of further work.
The complete leveling of procedural decisions is threatened by the termination of proceedings upon completion of procedures related to bankruptcy.

Petition

A petition is the document that is submitted to the court by the interested party and is aimed at the appointment and conduct of a certain action by the court. On the basis of such a document, the debtor has the right to make an attempt to prevent bankruptcy proceedings, for which good reasons are required. In the event that the petition itself comes from the insolvency practitioner, in it he must refer to the data of the report and evidence confirming the impossibility of declaring the debtor bankrupt. Such evidence can be documents confirming the fact of full satisfaction of the requirements of the existing composition of creditors. The fulfillment of obligations by the debtor refers to the list of grounds for the termination of proceedings, which is indicated in Art. 53 FZ. Petitions can also come from creditors. In it, creditors can declare the need to stop production in view of the study of the data provided in the manager's report, which is determined by Art. 118 FZ. The applicant is also vested with the right to apply for the termination of the proceedings. Together with him, he is obliged to provide:

manager's reporting documentation;
a document certifying the registration of the enterprise;
a document substantiating the right to appeal to the justice authorities;
minutes of the creditors' meeting;
claims made by creditors in the register.

Settlement agreement

Proceedings can be terminated at any stage of the trial, if the debtor and the creditor sign an amicable agreement.
The basis for such an agreement is the mutual concessions of the parties undertaken to end the dispute. In fact, an amicable agreement is one of the possibilities for a voluntary settlement of the situation by mutual expression of will.
The parties to this document are the debtor and the bankruptcy creditor or their combination. In addition to them, third parties can become participants, who are endowed with certain rights and obligations by the document.
The presence of several bankruptcy creditors means the need to make a decision on the conclusion of an amicable agreement at their meeting. The decision is taken by a simple majority. On behalf of the debtor, the debtor citizen himself, the head of the enterprise (during the supervisory procedure), the external manager (in the process of management from outside), the bankruptcy administrator (at the stage of bankruptcy proceedings) are responsible for the decision.
The document signed by the parties is submitted to the arbitration court for approval. The court is obliged to approve the agreement by the definition, which will terminate the judicial proceedings.
The settlement agreement can only be terminated in court if the debtor has not fulfilled its obligations in relation to at least a quarter of the creditors. After that, the parties can again go to trial within the boundaries of the new case.

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

Signing of settlement agreements with creditors.
Realization of property.
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:

He is awarded bankruptcy status.
Additional restrictions for those who are going to leave the country.
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:

Reports.
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.

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.
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:

Attached documents.
Date signed by the applicant.
List of requirements on the part of the applicant.
The list of norms responsible for regulating the issue.
Description of the circumstances of the case.
Number designation of a case or production.
The basis on which the appeal to the court itself was drawn up.
Complete data on all parties interested in the process.
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.

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.

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.

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.
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.

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 settle accounts with creditors.

Reasons for termination

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A bankruptcy case can be completed if:

in the course of or was restored the solvency of the debtor;
was concluded;
the applicant's claims, due to which the bankruptcy case was initiated, 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;
discontinued;
there are no funds required to compensate for court costs incurred in bankruptcy proceedings.

Actions

How to stop a case

most often, a bankruptcy case is stopped when a settlement agreement is signed, thanks to which it is possible to stretch the payment of a debt for a significant period, or when paying off creditors' claims;
quite often they resort to indirect methods of stopping the case, in particular, due to the redemption of claims for tax payments.

Close financial issues

In order to cover the debtor's debt to the creditor, the court, as a rule, appoints for a long term. In the event that the debtor is not able to pay off the existing debt even in this way, they resort to.
It is also worth considering that the consequences of the termination of insolvency proceedings do not imply the elimination of absolutely all obligations of the debtor. In particular, creditor claims for current payments, for the payment of alimony, related to compensation for damage to health or harm to life, must certainly be recovered.

Final papers and application

To express certain requirements regarding any action of the court, any interested person may submit a petition to the arbitration court. This statement will enable the debtor to prevent bankruptcy, provided that the applicant provides good reasons for this.

In addition to the petition, the applicant must provide the court with documents serving as confirmation of the grounds, namely:

a report drawn up by an external manager;
certificate of state registration of a legal entity;
a document that allows one to judge whether the applicant has the right to go to court;
minutes of the creditors' meeting;
register of creditor claims.

Liquidation

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

Liquidation is launched as a result of the declaration of a legal entity bankrupt, and upon termination of proceedings due to a lack of funds, the legal entity acting as a debtor continues to function. Formally, in the future it can be liquidated using the general grounds provided.

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 new one.

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

Consequences of Termination of Insolvency Proceedings

Domestic provides for the responsibility of the head, and sometimes the founder and the chief accountant, for actions or omissions recorded even before the bankruptcy procedure was started.

The consequences of termination of insolvency proceedings in the event of violation of statutory norms can be very serious, including administrative, civil and even criminal liability.

Consider possible types violations and penalties for this:

Fictitious bankruptcy is a knowingly false declaration of a legal entity or individual entrepreneur as bankrupt. In the absence of a 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 as a result of such an act, a fine is expected to be imposed in the amount of 100-300 thousand rubles or corresponding to a salary or other type of income in 1-2 years... Alternative option - imprisonment for a term up to 6 years plus size fine up to 80 thousand rubles.
- committing actions (or omissions) that knowingly lead to the inability to fulfill creditor requirements in full by a legal entity, or individual entrepreneur... Penalties, in the absence of a criminal component, imply the payment 5-10 thousand fine or a disqualification of duration up to 36 months... If such actions cause large damage, the amount of the fine increases up to 200-500 thousand rubles, and the possible term of imprisonment - up to 6 years(plus fine up to 200 thousand rubles).
An application not filed by the debtor with 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 have expired. It should be remembered that the application should be sent to the arbitration court within one month from the moment when the corresponding obligations arose. If, in the process of carrying out the liquidation procedure, a legal entity has become insolvent or the property it has has become insufficient to pay off debts, the liquidation commission is obliged to apply to the arbitration court with a statement from the debtor for a period of 10 days from the moment when signs of insolvency or insufficiency of property were identified.
If the head or founder of the debtor, members of its management bodies or members of the liquidation commission, or the debtor citizen himself violate any provisions of the Federal Law relating to insolvency, the above persons are obliged to compensate for losses that were caused as a result of such violations.

Peaceful agreement

According to the law, the peace agreement implies the implementation of one or more procedures to terminate the bankruptcy proceedings. It is mainly necessary in order to create the financial stability of the debtor, improve his position, and restore solvency.

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

This agreement is beneficial to both the debtor and the creditors. Thanks to him, the owner of the enterprise has the opportunity to prevent the 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.

Pros and cons

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

Among the pluses it is worth highlighting:

Formal repayment of all debts, the inability of banking institutions and collection organizations to demand execution on loans.
Restricting travel abroad is possible only when one procedure is carried out - the sale of property, while the standard collection provides for an automatic ban on travel abroad if the amount of debt exceeds 10 thousand rubles.
The introduction of the first bankruptcy procedure makes it impossible for creditors to further file claims regarding the collection of debts on loans. The only thing they can do is, within two months, declare their demands for the debtor to be included in the register.
The presence of the debtor during the bankruptcy procedure under the protection of the bankruptcy law, which excludes the application of compulsory claims for payment of the loan, claims in courts of general jurisdiction, any types of illegal actions on the part of banks.
Drawing up a debt restructuring plan that takes into account the family and life circumstances of the debtor.

The list of negative consequences of declaring bankruptcy includes: