Is it worth hiring a lawyer in case of bankruptcy of an individual and how can he help?

HomeArticles on bankruptcy of individualsLawyer for bankruptcy of individuals: assistance in writing off debts

Author of the article: Konstantin Milantiev

Last revised September 04, 2020

Reading time 3 minutes

In the minds of our fellow citizens, the court and everything connected with it is something vague and incomprehensible. It is not surprising, because few people often have to deal with legal proceedings, with the exception of specialists. Therefore, bankruptcy of individuals, which is certainly carried out in the Arbitration Court, frightens many. People prefer to “accumulate” debts rather than try to change their situation.

Lawyers, jurists and other specialists work to provide assistance to citizens who find themselves in temporary difficulties. We propose to consider in detail what a lawyer is in a personal bankruptcy case, what his assistance is and how to choose him correctly.

How can a lawyer help, why is his help necessary?

Bankruptcy services for legal entities - their popularity is now growing. The bankruptcy law has more than 200 articles regulating the bankruptcy procedure of enterprises and organizations. In addition to the general standards, specific provisions are provided for financial, agricultural, city-forming, strategic and other companies.

The bankruptcy procedure from the very beginning to the end is closely connected with the arbitration court. It is the court that determines whether there are sufficient grounds to initiate a case, declares the debtor bankrupt, approves the candidacy of an arbitration manager, and includes the creditors’ claims in the register. The actions of the bankruptcy trustee, meetings of creditors, and transactions are contested in court.

Therefore, for successful bankruptcy it is very important not only to know the law well, but also to have a good understanding of arbitration practice, the explanations of the Supreme Court, the Constitutional Court, and to be familiar with the practice of your region.

Also, the debtor has to constantly interact with the arbitration manager and authorized bodies. This requires specific knowledge and experience.

Therefore, in case of bankruptcy of an enterprise, one cannot do without a good lawyer specializing in such cases. The services of a bankruptcy lawyer for legal entities are a necessity for those who want to write off debts and avoid subsidiary liability.

What can a lawyer do?

The main result of bankruptcy is to help the debtor get rid of exorbitant debts that, for one reason or another, he cannot repay. An incorrect decision or unprofessional assistance can lead to civil, administrative and even criminal liability for the manager, founders, and members of the board of directors. To avoid this, choose professionals in your field.

Do you need the help of a corporate bankruptcy lawyer?

We will advise you!

We'll call you back!

What a good lawyer can do:

- to be a representative of the debtor in court, which means:

• participate in court when challenging the debtor's transactions ,
• challenge in court the illegal actions of the arbitration manager ,
• appeal in court against illegal decisions of the meeting of creditors ,
• protect the founders and managers of the debtor in attempts to accuse them of fictitious or deliberate bankruptcy, when bringing them to subsidiary liability,
• object to the claims of creditors if there are appropriate grounds,
• advise the debtor's managers in the monitoring procedure in order to avoid transactions that may be contested ,
• protect the interests of the debtor during the inventory of his property and holding auctions.

Representation in court in case of bankruptcy of an individual

Preparing documents and writing a statement of claim does not frighten debtors as much as the trial itself does. They do not know how to behave correctly, what to say, how to object to the actions of creditors.

Indeed, for a person who is in court for the first time, the trial itself seems to be a complex and incomprehensible procedure. But this is not entirely true, and if you study the legal framework and prepare properly for the trial, you can quickly get used to it. The main problem is to evaluate the actions of creditors and the financial manager. This is where a bankruptcy lawyer can help with both action and advice.

If we are talking about a legal entity, and the creditors have filed for bankruptcy of the LLC, then in this case it is better not to take risks, but to enlist legal support. A private lawyer can negotiate with the opposing party and resolve the case without bringing it to trial. This will preserve both the company itself and its property.

When to hire a lawyer?

If a company is insolvent, it is very important to file bankruptcy promptly.

Timely submission of an application by the debtor will allow:

• its director and founders to avoid subsidiary liability,
• submit your candidacy as an arbitration manager to the court for approval and gain the opportunity to control the bankruptcy procedure.

The sooner you involve a professional in the process, the greater the likelihood of going through bankruptcy without criminal, civil and administrative liability of the founders and other persons controlling the debtor.

Therefore, the best option for legal support is “turnkey bankruptcy” - bankruptcy services for legal entities, which include all expenses.

A lawyer will help you analyze the situation and advise you when it is best to submit an application.

Don't waste time - seek legal help!

We will advise you:

We'll call you back!
Attention! Do not forget to publish in the Unified Federal Register of Information on the Facts of the Activities of Legal Entities a notice of intention to apply to the arbitration court with an application to declare the debtor bankrupt no less than 15 days before going to court. Otherwise, the court will leave the application without progress.

The lawyer will also help analyze transactions for their possible challenge in bankruptcy proceedings .

A lawyer will help you draw up and submit an application, select a candidate for an arbitration manager or SRO , will participate on the debtor’s side in a meeting of creditors (without voting rights) and represent interests in court .

But if for some reason you start going bankrupt yourself, you can always involve a professional lawyer when challenging transactions, if necessary, appealing against the actions of the arbitration manager, to draw up the necessary procedural documents, complaints, statements, and to support bidding.

A company representative in an arbitration court, if he is not an arbitration manager or a body of a legal entity, must have a law degree.

Cost of a bankruptcy lawyer for individuals

Seeking help from lawyer VLADISLAV MIKHAILOVICH LYZHIN in Moscow is the right decision. We will share our experience and also talk about the nuances of bankruptcy of individuals.

Consultation by phone or online is absolutely free and does not obligate you to anything.

Call the numbers listed on the website, write by email, even just ask for advice from a personal bankruptcy lawyer. We are always happy to answer questions and help.

What can a lawyer do at each stage?

At the monitoring stage - to participate in court proceedings when considering creditors' claims, to protect the interests of the debtor from the unreasonable inclusion of illegal claims in the register.

At the stage of financial recovery - help in drawing up a report.

At the stage of external management - monitor the legality of the actions of the external manager.

During bankruptcy proceedings , prevent the sale of property at a reduced price.

At any stage, the lawyer will monitor the legality of the arbitration manager’s actions, appeal them, and advise the participants and shareholders of the company.

Don't waste time - seek legal help!

We will help at any stage:

We'll call you back!

When to Contact a Bankruptcy Lawyer

One of the key rules of judicial proceedings is the administration of justice on the basis of adversarialism and equality of the parties. Self-filing of an application for recognition of financial insolvency indicates the responsible attitude of the debtor. But the court will consider all the nuances of the case, so the preparatory stage is important.

To start the trial I will do the following:

1. I will prepare a package of documents;
2. I will compile an evidence base;
3. I will submit and register an Application for declaring a citizen bankrupt.

Say a good word about the controlling person

A separate issue is the question of subsidiary liability of persons controlling the debtor.

Lately, almost no case can be done without such statements. Such applications can be submitted by creditors or the bankruptcy trustee. There are a lot of cases with a positive decision, and the amounts collected reach tens or even hundreds of millions of rubles.

The bankruptcy of the founders - individuals does not relieve them from subsidiary liability for the debts of the enterprise.

The sooner a lawyer is involved in the case, the greater the chances of winning the trial. In some cases, the guilt of the persons controlling the debtor is assumed, and the task of the lawyers defending them is to prove that there are no grounds for holding them liable.

If bankruptcy was initiated by a creditor

If the bankruptcy procedure was started not by the debtor, but by the creditor, then he also cannot do without professional help.

The lawyer will assist the bankruptcy trustee, help challenge the illegal claims of creditors affiliated with the debtor, challenge the actions (inaction) of the arbitration manager, help challenge transactions, return the debtor’s property alienated under invalid transactions to the bankruptcy estate, help challenge the right of pledge and recognize the property as not being in pledge.

Bankruptcy of legal entities on a turnkey basis with the Law Firm "Pravovaya Garantiya"

TOP 5 reasons to apply right now:

Experience . We have been working since 2003. We work actively: representing interests in arbitration courts, collecting debts or working on the side of a bankrupt client. The services of lawyers for bankruptcy of legal entities have existed in the Bureau since its founding. Learn more about who we are.

We are lawyers. We are not a law firm, but a law office. This means that the activities of each of our specialists are regulated by legal ethics, the preservation of attorney-client privilege and a special status.

We don’t just go bankrupt, we write off debts. Over the course of our work, we have helped more than 200 enterprises write off more than 900,000,000 debts. Impressive?

The team is working. Brainstorming and teamwork on complex processes is a common practice at Legal Guarantee. Yes, we have our own and very strong area of ​​business protection from criminal prosecution. That’s why we are always ready to offer a complex: legal outsourcing, comprehensive business support.

We are for YOUR business! Working with legal entities and businesses, protecting them and upholding their interests is our specialization. Do you agree that it is impossible to cover all areas of law within one legal organization? Yes, this is not necessary. By specializing, we improve quality. We gain a wealth of experience in a certain direction. This experience helps us effectively defend your interests.

The lawyers of our Bureau can protect the interests of the following legal entities during bankruptcy proceedings:

Lender

Recognition of the debtor's transaction as invalid (thus, the debtor intended to hide the property and reduce the bankruptcy estate). We defended the interests of the creditor and challenged the transaction of the debtor who filed for bankruptcy. The bankruptcy estate included the amount for the invalidated transaction of RUB 7,630,055.00.

View document

Bankrupt legal entity / controlling persons / director, founders, chief accountant

Protection of the former director of a bankrupt legal entity from subsidiary liability. We were able to defend the interests of the principal and prove that he is not a controlling person of the bankrupt debtor.

View document

The price of the bankruptcy procedure for legal entities at the Legal Guarantee Law Office ranges from 200,000 rubles.

How can a legal entity legally write off debts, and how can a manager avoid subsidiary liability?

Features of legal support for bankruptcy

There are several important nuances of legal support for bankruptcy in Moscow that must be taken into account before contacting a human rights company:

• Legal support of the bankruptcy procedure from a legal company or lawyer begins long before its initiation. Initially, the specialist studies information on the financial condition of the organization and also determines the presence of signs of insolvency;
• Human rights defenders can offer services for the financial recovery of the company so that insolvency can be avoided. In some cases, this really helps - the specialist will take care of developing corporate management schemes that will help avoid liquidation;
• The specialist carries out the work of selecting the necessary arbitration manager. For this purpose, a self-regulatory organization or a specific specialist is selected, information about which is specified in the statement of claim. The court only approves the selected manager;
• If arbitration managers work in the direction of analyzing the financial situation of the company, as well as searching for debt restructuring schemes, then the work of lawyers is focused on eliminating the debt itself. Therefore, when providing legal support for bankruptcy, large-scale work is carried out with creditors. Human rights activists are trying to reduce debt obligations or exclude them from the total mass by reaching an agreement and signing a settlement agreement.

The work of a bankruptcy law firm is necessary if you want the procedure to go quickly and without problems. Such a solution has many advantages for the future debtor.