Debtor protection in bankruptcy proceedings is one of the main services of our company
based on the Insolvency Law, law one, three application options:
bankruptcy of enterprises, bankruptcy protection, collection of receivables.
Grounds for creditors to file an application for bankruptcy of a debtor enterprise
is the debt to creditors:
– Jur. persons - the amount of debt is from 100,000 rubles, the duration of the debt is more than 3 months;
– Individual entrepreneur – the amount of debt is from 10,000 rubles, the duration of the debt is more than 3 months;
process for creditors:
The process of collecting receivables using the Insolvency Law is a legal process, fast, effective and has many advantages for the creditor and a number of negative consequences for the debtor, this material is described in detail in the debt collection section.
Since the specialists of our company are involved, among other things, in the collection of receivables, we know very well what negative consequences can occur for the debtor, therefore we strongly recommend that if a bankruptcy procedure is introduced against you as a debtor, immediately seek help from insolvency practitioners, and The sooner you contact, the easier it will be for us to build a defensive position for you and take the case under our control.
The main protective measures of a debtor enterprise in bankruptcy proceedings:
To protect the debtor in bankruptcy proceedings, bankruptcy managers most often use three main methods:
The first method of protection is control over the actions of the AC creditors.
Problematic and sad fact: When filing an application for bankruptcy of a debtor, the filing party (creditor) will definitely indicate the candidacy of “his” AC, in this case the creditor will pay the AC’s fee and there is no doubt that the creditor will enter into a conspiracy with him in advance and agree on measures that will be applied to the debtor in the procedure, thus it will be the creditor who will control the bankruptcy procedure.
Method of protection: In the bankruptcy procedure, the bankruptcy manager performs hundreds of different procedural actions in accordance with the requirements of the Law “On Insolvency”, while the manager is obliged to carry out everything exactly on time. Our main task is to “catch” the arbitration manager of creditors for mistakes made and missed deadlines for the execution of procedural actions, then to report the violations to the arbitration court, thereby justifying its incompetence, in order to remove the “AU creditors” from the bankruptcy procedure.
The second method of protection is the inclusion of a “friendly creditor” in the register of creditors.
The arbitration manager of our company carries out a number of activities:
1. Identifies all possible creditors in the debtor’s bankruptcy case;
2. Conducts negotiations with creditors in order to obtain support in the bankruptcy procedure at meetings of creditors in favor of the debtor;
3. Declares the inclusion of “friendly creditors” in the register of creditors;
The task of our arbitration manager is to gather the maximum number of “friendly creditors” in order to obtain the maximum number of votes and obtain a decisive vote at meetings of creditors. Having received the largest number of votes, we will be able to remove creditors from the receiver’s procedure and take control of the bankruptcy process.
You probably think that this process is complicated and not feasible, but as our practice shows, in 95% of cases, this process is successful!
The third method of protection is control over the manager’s compliance with the law of creditors and processes in the bankruptcy procedure.
Almost always, the creditors' manager takes advantage of the lack of knowledge of the laws on insolvency and the practice of their application by the debtor and commits violations in favor of the creditors, with a unilateral benefit for the creditors and himself personally. The easiest way to respect the rights of the debtor is to hire a qualified and experienced arbitration manager who will monitor all actions of the “Authority of Creditors”, compliance with the Insolvency Law, the correctness of its application, procedural deadlines, the correctness of drawing up various documentation, etc.
Fighting debt collectors when a citizen goes bankrupt
Why is personal bankruptcy an ideal option for borrowers who cannot pay a loan? Everything is very simple: from the moment of the first court hearing, all claims against the debtor from banks and collectors are legally terminated!
Also, from this moment, enforcement proceedings regarding debt collection have been suspended. After bankruptcy, debts are written off, and suspended enforcement proceedings will simply be closed. Collectors after the bankruptcy of an individual do not have the right to demand payment from the person.
They can apply to the arbitration court to be included in the register of creditors' claims, but they will have to communicate with the financial manager about the debt.
If a debt collector claims a debt despite bankruptcy, you have the legal right to file a complaint against the violators. It is enough to record a telephone conversation on a voice recorder or record on camera the arrival of agency employees at home or work. After this, file a complaint with the FSSP and inform the financial manager.
Call our lawyers, we will tell you how to deal with debt collectors in your situation, how to notify them of bankruptcy, and what the financial manager should do.
Bankruptcy through the court is a rather lengthy process. As part of the process, the financial manager takes over the management of the debtor's financial resources. He also collects creditors, enters demands into the register, publishes information about the procedure in the Federal Resources Agency and carries out other actions within the framework of judicial proceedings.
Accordingly, before the procedure, it would be a good idea to obtain legal advice and carefully prepare for the trial.
If you have large debts and circumstances do not allow you to pay off creditors, contact professional lawyers, we know how to help you! We offer legal assistance at all stages of the trial, as well as reasonable installment plans to pay for our services!
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bankruptcy:
- Free and detailed analysis of the debtor’s current situation (consulting);
- Studying the case materials and preparing all necessary documents;
- Negotiations with creditors aimed at obtaining support for the debtor enterprise;
- Carrying out measures to remove the “creditor’s control” and complete control over the bankruptcy procedure;
- Protection of company assets and property of enterprise participants;
- Legal suspension of payment of monetary obligations to creditors for a period of 6 months to 2 years;
- Extension and restructuring of bank loans and borrowings on terms favorable to the debtor enterprise;
- Collection of accounts receivable;
- Carrying out external management procedures - at the request of the customer;
- Development of measures for financial recovery and carrying out the financial recovery procedure - at the request of the customer;
- Conducting bankruptcy proceedings;
- Development and conclusion of a settlement agreement with creditors;
If bankruptcy proceedings have already been introduced against you, do not despair,
contact us, our team has successfully protected more than 118 enterprises
in the bankruptcy procedure, we will help you too.
Domino effect: what is the danger of a moratorium on bankruptcy?
Most likely, the market will face a wave of claims and litigation from legal entities against counterparties, because the introduced restrictive measures in the form of a work ban have negatively affected the contractual relations between them - certain contractual terms have become either completely unenforceable for an indefinite period of time, or their implementation has become difficult. In this regard, legal entities (their counterparties) will want to be released from liability for failure to fulfill obligations (Article 401 of the Civil Code of the Russian Federation) or terminate contracts or change their terms due to significantly changed circumstances (Article 451 of the Civil Code of the Russian Federation), this will entail numerous lawsuits disputes.
We expect that businesses will face a two-fold jump in financial burden when the deferment on payment of insurance premiums and taxes ends. In this regard, some employers (for example, from the restaurant business) force their employees to go on vacation without pay. But these actions of employers violate the provisions of labor legislation, since leave without pay is provided to employees only upon their applications, and putting pressure on employees is unacceptable (Article 128 of the Labor Code of the Russian Federation, paragraph 20 of the Appendix to the Letter of Rostrud dated 04/09/2020 No. 0147-03 -5).
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Most likely, the first to go to court will be dissatisfied tenants who paid rent for empty offices and shops and were unable to agree with the landlords on a discount or termination of the contract. We also expect requests from suppliers of large networks. Thus, Rive Gauche refused to pay suppliers before the opening of stores, and the retailer X5 Retail Group notified suppliers of the cancellation of the moratorium on fines from April 6 (suppliers regard the lifting of the moratorium as “a gross violation by the federal retail of agreements reached and widely announced by the Association of Retail Trade Companies with suppliers "). But we are unlikely to see companies from the list of the most affected industries in court in the near future, because they primarily received support from the state.
Of course, the number of bankruptcy cases will increase. The current moratorium on bankruptcies does not stop creditors from collecting debts from debtors in ordinary litigation proceedings. As soon as the moratorium is lifted, a wave of bankruptcies will be inevitable. If in a normal situation companies could find a way out by reorganizing, cutting costs or increasing profits, now, when profits are at a minimum due to quarantine and debts continue to grow, none of this seems possible.
There are no examples from judicial practice yet of companies abusing and using situations with non-working vessels to pay partners with delays.”
Evgeny Gurchenko, head of the judicial arbitration practice of Egorov, Puginsky, Afanasyev and Partners in St. Petersburg:
“The introduction of a moratorium on bankruptcy weakens standard market mechanisms and may lead to the fact that actual bankrupts will continue to work, thereby creating risks for counterparties of loss of funds. Firstly, the moratorium is not due to the fact that the deterioration of the financial situation was caused by the pandemic (while some European countries have established such a requirement). Therefore, the moratorium also includes companies that were in a difficult state even before the pandemic.
Secondly, the financial model of many companies subject to the moratorium does not imply high profitability. If these companies do not receive financial support from business owners, creditors or the government, they will eventually go bankrupt as well.
Thirdly, there are always companies that are not used in the most conscientious manner. For them, the bankruptcy procedure can become part of a plan to withdraw assets, and the moratorium gives time to prepare for bankruptcy.
At the same time, we must not forget about the possible domino effect: the moratorium implies not only restrictions on initiating bankruptcy, but also a ban on forced collection of debt from such companies. As a result, creditors of such companies will not be able to collect the debt and risk going bankrupt themselves.
To protect yourself, you need to take a few simple steps. First of all, you need to check whether your company is covered by the moratorium, and also assess whether it is in your interests. For example, the moratorium regime implies a ban on the payment of dividends and may also create risks for transactions. Perhaps it makes sense to declare a refusal to use it.
If there is a risk that the company’s solvency will not be restored, it is necessary to consider the following options: develop in advance possible proposals for creditors for debt restructuring; begin negotiations with your creditors and obtain from them written consent to conclude a settlement agreement in bankruptcy proceedings initiated after the moratorium is lifted.
Even if your company does not fall under the terms of the moratorium, you should check your counterparties and take into account the following risks: the current ban on foreclosure on the assets of debtors is actually equivalent to a refusal to fulfill contracts during the moratorium period. Companies are exempt from penalties and other financial sanctions for late fulfillment of monetary obligations. There are risks that transactions made by companies will be challenged. Enforcement proceedings on property penalties are suspended (arrests remain in place).
These restrictions may seriously affect the ability to work normally with such counterparties. Therefore, you can consider the possibility of the counterparty to refuse the moratorium. Another option may be to switch to an advance payment system with such a counterparty, suspending contracts for which there is a risk of significant delays in payments. It is important not to forget about a pragmatic approach to assessing your counterparties and constantly monitor their financial condition, analyze the number of claims, interact with their management and owners in order to understand their real financial condition.”
The opinions of the speakers may not coincide with the position of the editors
Recorded by: Elena Dombrova
