Federal Insolvency Law

What is the protection of entrepreneurs, whose companies went bankrupt in a crisis of unstable economic conditions? To facilitate such persons liquidation and resale of property, in 2002 the Federal Law "On Insolvency" No. 127-FZ was adopted.

The law of Russia on bankruptcy

This is the main insolvency law in force in the country. Since 1990, it has been revised three times. The economic situation required the introduction of necessary explanations and additions. Basically, they relate to changes in the timing of bankruptcy and the amount of unfulfilled obligations, as well as clarify the sequence of sales of the existing property of the debtor company. The law introduced a new institute of arbitration administrators and provides for independent examination. Now the judges have no need to make economic decisions. To do this, experts will need expert opinions .

Constantly replacing each other's economic crises in the country demanded the creation of a national infrastructure for bankruptcy, which was fixed in the current legislation. It was necessary to specify the vague formulations. The insolvency law adopted in 2002 indicated a precise definition of the amount of arrears in monetary terms (500 minimum salaries at the moment), as well as the period of non-repayment of debts (more than three months). The minimum debt threshold of insolvency is also defined. It is only 42 thousand rubles.

Payments on time and reputation

Thus, payment discipline becomes tougher. Enterprises-creditors now have the grounds to directly apply to the court demanding collection of debts after three months. Litigation is no longer delayed because of uncertainty, as before. Therefore, serious owners of companies in order to maintain their reputation at a high level, you have to monitor the payment of debts on time. The dynamics of settlements should now also be carefully controlled by the owners.

The insolvency law obliges the head of the debtor enterprise to apply to the court if he discovers in the financial analysis of tangible assets that when paying out the requested debts, one creditor will no longer be able to pay the existing debt to other legal entities. For failure to comply with this requirement, rather strict sanctions are provided. It is also the responsibility of covering the enterprise's debts from personal funds, and depriving them of the right to take a managerial position, and even criminal responsibility.

Observation period

But with respect to property interests, the federal bankruptcy law provided insolvent debtors with a noticeable relief. Now the tangible property and bank accounts are not arrested at the request of creditors for the period of the trial, contributing to the slow "dying" of the enterprise. The arbitral tribunal introduces an observation period during which the firm functions as usual, and the interim manager monitors all financial transactions and transactions.

Bankruptcy of credit organizations of energy-fuel monopolies

In addition to the basic law, for organizations that have borrowed loans from banks or other financial institutions, there is also Law No. 40-FZ "On Insolvency of Credit Organizations", adopted in 1999. If the measures of financial recovery or reorganization did not bring the desired result, the arbitration court recognizes the inability of the organization to fulfill the monetary claims of creditors, that is, its bankruptcy.

For large economic and financial corporations in Russia, there are separate conditions for bankruptcy, which are fixed and explained in the law "On the features of insolvency of subjects of natural monopolies of the fuel and energy complex", No. 122-FZ, passed in 2005.