If not to go into detail — an insolvency proceeding essence it's possible to reduce to disposal of excessive debts. Thus the state acts only as the arbitrator. The main parties in the course of bankruptcy are the bankrupt and its creditors. In our country arbitration courts are engaged in bankruptcies.
Insolvency Psroceeding
By our legislation the initiator of bankruptcy can be both the creditor, and the future bankrupt which has realised impossibility to pay own credits. Thus, bankruptcy can be caused not only inability to pay off any debt (for example, a bank loan), but also impossibility to perform current payments — tax, rent, etc (Chapter 7).
If judges basically agree with necessity of bankruptcy the arbitration managing director interferes with process. At different stages of insolvency proceeding the post of this person can be called differently: the temporary manager, administrative or competitive managing director, but an essence from it does not change.The arbitration managing director should secure the most complete satisfaction of requirements of creditors: or to recover ability to meet payments of debtor enterprise, having performed the rehabilitation plan, or to settle payments with creditors.
After calculations are finished, the bankrupt ceases the existence. And together with it cease existence and all its debts which it was not possible to pay. As a rule, this action will make a professional bankruptcy attorneys work out, thus will show obvious tears in the legislation, or will underline legal talent of the lawyer.
