In the current economic realities of our country, more and more enterprises are in a situation where they have nothing to pay off their debts. This can happen for various reasons: there are no orders, there is no implementation, counterparties do not pay their obligations and so on. In consequence of these reasons, the enterprise falls into a trap of systematic non-payments. Accounts payable gather like a snowball, on the core obligations, creditors and authorities of income and fees start to accrue penalties for their non-compliance.
In such circumstances, the owners and management of the company pushed into a corner by constantly growing debts, are trying to do everything to bring the enterprise out of the crisis. And well, if they succeed. And if not? What to do then? What can you think of, what decision to take and what way out can be found?
Do not despair. Our legislators have already decided everything.
Thus, paragraph 3 of Art. 110 of the Civil Code of Ukraine provides that if a legal entity does not have sufficient property to satisfy creditor claims, it shall implement all necessary measures provided by the Law of Ukraine "On resuming the solvency of the debtor or declaring it as a bankrupt". Along with this, the Law of Ukraine " On resuming the solvency of the debtor or declaring it as a bankrupt ", namely paragraph 5 of Art. 11, obliges the debtor to file a petition in court to initiate a bankruptcy proceeding in case it has a threat of insolvency, in other words, if the satisfaction of the claims of one or several creditors of the enterprise makes it impossible for them to fulfill their obligations to other creditors.
Thus, according to the current legislation of Ukraine, in the situation described above, the owner (the management of the enterprise) must take a decision and file a petition in the court of recognition of his enterprise as a bankrupt. For many people, the word bankruptcy causes panic. No need to panic. Let's figure it out. Maybe it's not so terrible? Perhaps, bankruptcy is not the end, but only the beginning? Can bankruptcy be a way out?
Now let's talk about the advantages of bankruptcy.
First, if the owner of the enterprise has decided to liquidate and bankrupt his company, he can entrust this procedure, which is not very pleasant for him, to professionals who know what to do with such enterprises and how to carry out the bankruptcy procedure with the best result for the owner of the enterprise. Thus, the owner is freeing time for the prospect - the development of a new business.
The next important point is that after the company is declared bankrupt by the court, it does not have any additional obligations, including payment of taxes, levies and compulsory payments, as well as penalties and interest on all kinds of enterprise debts.
And finally, paragraph 5 of Article.45 of the Law of Ukraine "On resuming the solvency of the debtor or declaring it as a bankrupt" it is established that all claims (accounts payable) not repaid in consequence of the insufficiency of the property of the bankrupt enterprise are extinguished, in other words, cease to exist.
As it’s said: “out of every desperate situation, there are at least two ways out”. So, based on all the above stated it can be concluded that bankruptcy is not fear, it is a way out for those businesses and their owners, who have fallen into the bondage of debt and cannot get out of it.