Bankruptcy is the reality of a market economy

To conduct business in times of market economy is not easy. And if the owner or management does not have sufficient financial resources or they lack an entrepreneurial "vein," the enterprise sooner or later is in for bankruptcy. This concept in the economic sense means that this enterprise has no assets to pay its debts to creditors. According to statistics, two-thirds of various enterprises in Russia become bankrupts in maximum 2-3 years of activity. And this phenomenon is quite natural. Here, as in the wild, natural selection operates - the strongest survives.

But bankruptcy is not only an economic concept. This is also a legal procedure, the terms and procedure of which are strictly regulated by certain laws. In Russia, these laws include the Civil Code of the Russian Federation, as well as the Federal Law of the Russian Federation "On Bankruptcy". And this procedure can be initiated both by creditors of a particular enterprise, and by the debtor enterprise itself. And then a number of measures are carried out, which are aimed at satisfying the demands of creditors. In a number of cases, bankruptcy of the enterprise is an optimal solution for the debtor himself. After all, this procedure is the only option for liquidating a debtor enterprise.

And to the creditors, in order for the debtor to be declared bankrupt, one must go to court. For them, this is often the only way to return their investment. And often it turns out to be done, if not in full, then at least partially. In carrying out this procedure, the debtor enterprise together with its assets are sold at auction. This makes it possible to acquire it at a favorable price. And in these trades, even third parties can participate.

But in general, bankruptcy is a very complex and multifaceted procedure, both from a legal and an economic point of view. And this procedure consists of several stages. Each stage is aimed at achieving certain goals. And the arbitration manager is at the head of the bankruptcy procedure. And he, in turn, appoints an arbitration court. In fact, this arbitration manager becomes the head of the company for the duration of the bankruptcy procedure.

And the bankruptcy case is being tried in court for seven months. The report comes from the day the application was filed. And by decision of the court, the debtor becomes bankrupt. The court also decides on the sale of his property. This decision of the court, any party to the case may appeal in the manner prescribed by law. But not always the court's decision is so drastic. Sometimes the participants in the process manage to reach a peace agreement, in which the lender is mainly interested. Then he gets a part of the debtor's assets or shares and practically becomes his co-owner.

There is also such a thing as fictitious bankruptcy. This is an offense, which in our time is widespread. And its essence is that the owner (manager) of the organization or an individual entrepreneur intentionally makes his business insolvent. Then he declares himself bankrupt, although this statement is false. This is done in order to deceive the creditors.

The reasons for such actions are quite understandable. Simply, many businessmen who have accumulated debts want to repay them through a bankruptcy procedure. And it is not difficult to artificially cause bankruptcy. To do this, it is sufficient to not pay debts for three months, and the enterprise's debt should exceed 100 thousand rubles. In the meantime, such an organization transfers most of its assets to friendly firms, and only "crumbs" remain on its account. And when the bankruptcy case ends, the creditors receive only pathetic remnants of those values that the unscrupulous organization did not want or could not withdraw from their accounts. In this case, bankruptcy is an illegal way of making money for cunning dealers. And to understand whether the real or fictitious is bankruptcy, should the same arbitration administrator.