Article 20.6. Remuneration of an arbitration manager in a bankruptcy case

Pros and cons of the professionImportant qualitiesWhere to studyCourses for arbitration managersSalary as of 09/07/2020

An arbitration manager is a specialist with Russian citizenship who is a member of a self-regulatory organization and is engaged in private anti-crisis practice, including in bankruptcy cases of legal entities and individual entrepreneurs in accordance with the powers granted to him by the Federal Law “On Insolvency (Bankruptcy)”. The profession is suitable for those who are interested in economics, law and social studies (see choosing a profession based on interest in school subjects). In 2020, the ProfGid career guidance center developed an accurate career guidance test. He himself will tell you which professions are suitable for you, and give an opinion about your personality type and intelligence.

Features of the profession

In addition to arbitration activities, arbitration managers have the right to engage in other activities, provided that the additional activities do not interfere with their performance of the main duties of the manager.

The arbitration manager has the right:

• convene a meeting and committee of creditors;
• apply to an arbitration court to resolve disputes;
• attract other specialists to work at the debtor’s expense;
• conduct a search for the debtor’s property and return the property to the debtor’s possession;
• take other actions.

The arbitration manager is obliged:

• conduct an analysis of the debtor's activities;
• identify violations in the activities of the debtor;
• submit documents on completed transactions for consideration by a meeting of the debtor’s creditors;
• spend the debtor's funds to fulfill his obligations;
• analyze documents for signs of fictitious and deliberate bankruptcy of the debtor;
• keep secrets about bankruptcy proceedings;
• perform other actions provided for by law.

For improper performance of duties, the arbitration manager is subject to disqualification, and under certain circumstances he may be brought to administrative and criminal liability.

Conditions for membership in a self-regulatory organization

• higher education;
• 1 year of experience as a manager;
• internship as an assistant to an arbitration manager for 6 months;
• successfully passed the theoretical exam;
• no disqualification;
• insured liability;
• no criminal record.

Federal Law on Bankruptcy interest on the remuneration of the bankruptcy trustee calculation example

The procedure for settlements and the amount of funds received by the bankruptcy estate when using this method of selling property are determined by clauses 1 and 2 of Art. 138 of the Bankruptcy Law. In this regard, the amount of the repaid claim of the secured creditor as a result of retaining the subject of the pledge is also subject to accounting as part of the repaid claims of creditors for the purpose of determining the amount of remuneration in the form of interest accrued in the bankruptcy procedure. This position was confirmed in the ruling of the Supreme Court of the Russian Federation in case No. 305-ES15-10377 dated 12/26/2020, in the ruling of the Supreme Court of the Russian Federation in case N 309-ES16-1041(2) dated 02/15/2020, in the ruling of the Supreme Court of the Russian Federation Federation in case No. 304-ES16-19323 dated April 20, 2020. The second point of view brings to the fore the legal nature of the proceeds, which is defined in paragraph 2 of Art.

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According to clause 16 of the Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation No. 60 of July 23, 2009 “On some issues related to the adoption of the Federal Law of December 30, 2008 No. 296-FZ “On Amendments to the Federal Law “On Insolvency (Bankruptcy)”, when calculating the amount of interest on remuneration and the limit of expenses based on the book value of the debtor’s assets (clauses 10, 11 and 14 of Article 20.6, clauses 3, 4 and 8 of Article 20.7 of the Law), courts must take into account that if the debtor’s balance sheet as of the established reporting date is missing due to that the debtor applied a simplified taxation system or did not prepare financial statements, then to determine the book value of the debtor’s assets on the basis of clause 3 of Art. 50 of the Law, an examination may be appointed.

Training to become an Arbitration Manager

Courses

MASPC (Interregional Academy of Industrial and Construction Complex)

invites you to the “Arbitration Manager” as part of additional education programs. You can undergo professional retraining or improve your qualifications in your specialty through courses at MASPC in a convenient and modern distance learning format.

Russian Institute of Professional Education "IPO"

Russian Institute of Professional Education “IPO” is recruiting students to receive the specialty “Arbitration Manager” under a distance program of professional retraining and advanced training starting from 9,900 rubles. Studying at the IPO is a convenient and quick way to receive distance education. 200+ training courses. 8000+ graduates from 200 cities. Short deadlines for completing documents and external training, interest-free installments from the institute and individual discounts. Contact us!

MAEO (International Academy of Expertise and Evaluation)

In this course, you can obtain a profession as an education management specialist remotely in 3 months and 10,000 rubles: - One of the most affordable prices in Russia; — Diploma of professional retraining of the established form; — Training in a completely distance format; — Certificate of compliance with professional standards worth 10,000 rubles. For a present! — The largest educational institution of additional professional education. education in Russia.

Universities

St. Petersburg Law Academy

Jurisprudence (correspondence) (Faculty of Law (bachelor's degree))

Moscow Humanitarian University, Moscow State University

Enterprise Economics (Faculty of Economics, Management and International Relations)

National Research University "MPEI"

Economics (Engineering and Economic Institute of the National Research University "MPEI")

Moscow Technical University of Communications and Informatics

Economics (Correspondence General Technical Faculty of MTUCI)

Autonomous non-profit organization of higher education "Institute of Continuing Education"

Economics in construction and housing and communal services (Autonomous non-profit organization of higher education “Institute of Continuing Education”)

Examples of remuneration for a bankruptcy trustee

To calculate the amount of interest on the arbitration manager's remuneration, the book value of the debtor's assets is determined according to the financial statements as of the last reporting date preceding the date of introduction of the corresponding procedure applied in the bankruptcy case. 15. When a bankruptcy case is terminated in connection with the conclusion of a settlement agreement, the payment of interest on the arbitration manager’s remuneration is carried out within the time frame and in the amount established by the settlement agreement. 16. When carrying out procedures applied in a bankruptcy case, in relation to certain categories of debtors, the regulatory body may establish a different amount and (or) procedure for paying remuneration to the insolvency administrator. (Clause 16 as amended by Federal Law No. 195-FZ of July 19, 2009) (see text in the previous edition) 17.

To calculate the amount of interest on the arbitration manager's remuneration, the book value of the debtor's assets is determined according to the financial statements as of the last reporting date preceding the date of introduction of the corresponding procedure applied in the bankruptcy case. 15. When a bankruptcy case is terminated in connection with the conclusion of a settlement agreement, the payment of interest on the arbitration manager’s remuneration is carried out within the time frame and in the amount established by the settlement agreement. 16. When carrying out procedures applied in a bankruptcy case, in relation to certain categories of debtors, the regulatory body may establish a different amount and (or) procedure for paying remuneration to the insolvency administrator.

General procedure for establishing priorities for payments in bankruptcy

After the arbitration manager has accepted all applications and demands from creditors, he has compiled a complete register of such claims, and begins direct work on settlements with creditors in the following order:

1. Creditors and claims that are satisfied first.

These requirements include:

• any costs and payments associated with maintaining and complying with environmental, radiation and other safety standards, which may be associated with technological processes and conditions in which the bankrupt enterprise operates.

Current payments in bankruptcy

• all costs associated with the judicial arbitration process. This includes not only the payment of remuneration to the arbitration (competition) manager in the amount of 30,000 rubles. Legal costs also include costs associated with attracting various experts and specialists to conduct a full-fledged bankruptcy trial. Also paid are the expenses caused by the need to conduct an accounting examination of the financial statements of a bankrupt company, attracting audit companies and appraisers. In addition, this also includes those expenses that directly ensure the sale of the debtor’s property at special auctions - commissions and rewards for auction trading platforms and houses.

Accounting for bankruptcy expenses

• expenses and payments associated with providing a company or enterprise with the necessary utility infrastructure - water supply, heat, electricity, etc.

1. The second priority of creditors and their requirements include:

• Payment of all arrears of wages to company personnel with whom there are concluded employment agreements or contracts. Also, all severance and social benefits to employees are paid from the funds of the bankrupt company, including payments for sick leave and other financial obligations to employees.
• expenses for mandatory payments to budgets of all levels are various federal, regional and municipal taxes. This also includes payments to extra-budgetary funds, such as the Pension Fund or NPF, FSS (Social Insurance Fund) and MHIF (Compulsory Health Insurance Fund).

Note. Particular attention should be paid to current taxes, since the bankruptcy law introduces special rules for their payment. Only payments for the unified social tax are made out of turn, which is specifically stipulated in clause 5 of Art. 134 of the Bankruptcy Law. When transferring to the budget amounts of personal income tax withheld from employees' wages, the debtor acts as a tax agent. Therefore, the established priority of payments for the debtor does not apply to cases of transfer to the budget of amounts of personal income tax (NDFL), which must be paid as wages are paid to employees. The remaining taxes calculated in bankruptcy proceedings are paid after the repayment of all debts according to the register

1. The third priority for satisfying creditor claims includes: payments on loan obligations, debts to partner companies and contractors. The order of priority for the distribution of debt payments among this category of creditors is determined by the arbitration manager, based on the timing of obligations, the amount of outstanding debt, as well as the time of filing or receiving the corresponding application from the creditor.

Sale of bankrupt property at auction

If, in the event of bankruptcy of a debtor company, all its available material or monetary resources are not enough to fully repay debts to creditors of all three priority levels, then in this case

The law establishes a procedure for repaying the following priority financial obligations:

1. Payment of compensation for sick leave and other disability compensation to company employees.
2. Remuneration of employees, including existing debt for previous periods.
3. Payments of taxes to budgets of all levels, as well as to extra-budgetary funds.

Payment of taxes in case of bankruptcy of a company

1. Debts to other creditors are paid from the remaining funds.