The bankruptcy of an enterprise, LLC or company
Over the past two years we have liquidated more than 10 companies working in construction, manufacturing, wholesale trade, retail trade, and services, with a total debt of more than BYN 1.5 million. We are currently working on the liquidation of companies with a register of creditors totaling over BYN 3 million.
Our company provides turnkey bankruptcy services. We work throughout Belarus. We carry out bankruptcy procedures for LLC, ALC, UE, CJSC, OJSC for foreign companies and individual entrepreneurs.
The fee for bankruptcy services
Protection of the debtor’s interests (with the assistance of a lawyer if necessary) – at a rate of BYN 60 per hour.
The main functions of the bankruptcy administrator
- He/she dismisses employees due to the end of the company’s activity;
- Ensures the final settlement with employees;
- Arranges for the custody of the company’s assets;
- Ensures the preservation of the company’s documents;
- Recovers its receivables;
- Checks the legality and validity of the claims of creditors;
- Prepares and maintains a register of creditors’ claims, analyzes the company’s financial position, and develops a plan for the liquidation of the company;
- Identifies the grounds for pursuing subsidiary liability for the director, founders, and other company officials;
- Organizes an appraisal of the company’s assets and sells them through an open tender;
- Settles accounts with creditors in accordance with the orders set out in the Law of the Republic of Belarus “On economic insolvency (bankruptcy).”
When an entry is made on the liquidation of a debtor in the Unified State Register of Legal Entities and Individual Entrepreneurs, the powers of the administrator are terminated, the liquidation proceedings are considered completed, the legal entity debtor is considered liquidated, and the individual entrepreneur debtor – free of debt. (article 154 of the law “On economic insolvency (bankruptcy)”).
Call us with any questions. +375 29 311-62-41
Frequently asked questions about the bankruptcy process
Who can apply for bankruptcy?
According to Article 6 of the law “On economic insolvency (bankruptcy),” the following persons have the right to file a bankruptcy petition:
- the creditor (including a representative of the employees of the debtor),
- the prosecutor,
- the government authority on bankruptcy,
- the tax authorities,
- and other public authorities authorized to do so.
In the event of the bankruptcy of an enterprise in the process of liquidation, the founder, executive, or another authorized body (liquidation commission/liquidator) has the right to file a bankruptcy petition. Bankruptcy procedure.
What must be done to apply for bankruptcy?
Article 7 of the Law of the Republic of Belarus “On economic insolvency (bankruptcy)” sets out the basic conditions for the filing of a bankruptcy petition by a debtor.
The grounds for a company to file a bankruptcy petition (hereinafter referred to as the “bankruptcy petition”) is its inability to pay debts if this condition has taken on a permanent aspect.
The debtor may file the bankruptcy petition with a commercial court under circumstances clearly indicating that it will not be able within the prescribed time to perform its obligations (including obligations to pay salaries/wages) owing to its inability to pay debts becoming permanent (in anticipation of bankruptcy).
The decision on filing a bankruptcy petition for an LLC (company, etc.), is taken by the body with the right to decide about its elimination. For business companies (LLC, ALC, CJSC, OJSC), it is the General Meeting of Founders (Shareholders); for a unitary enterprise it is the founder.
Within 10 days from the date of submission of the bankruptcy petition (by the company itself or by others), the debtor is obliged to notify its employees.
When is a debtor required to apply for bankruptcy?
According to Article 8 of the Law of the Republic of Belarus “On economic insolvency (bankruptcy)”, the debtor should file a bankruptcy petition with a commercial court in the following cases:
- The repayment of a debt owed to one (or several) lender (lenders) would make it impossible to fully repay debts owed to other creditors or would lead to the cessation of activity by the legal entity debtor;
- The body (person) authorized to take a decision on liquidation decides to file the bankruptcy petition with the court;
- The body authorized by the owner of the property of the unitary enterprise debtor decides to file a bankruptcy petition with a commercial court;
- In conducting the liquidation of a legal entity, it is found that it is impossible to satisfy the creditors’ claims in full.
In these cases, the bankruptcy petition shall be filed with a commercial court within one month from the occurrence of the related grounds.
The failure by the debtor to file the bankruptcy petition in these cases within the prescribed time entails the subsidiary liability of persons guilty of this.
What is a “false bankruptcy” or “premeditated bankruptcy”?
The notions of “false bankruptcy” and “premeditated bankruptcy” are defined in Article 9 of the Law of the Republic of Belarus No. 423-Z dated July 18, 2000 “On economic insolvency (bankruptcy)”:
- Article 9 of the Law of the Republic of Belarus “On bankruptcy” qualifies false bankruptcy as the filing of a bankruptcy petition with a commercial court when it is possible to satisfy creditors’ claims in full.
- The effects of actions by the debtor being qualified as false bankruptcy: the person on behalf of whom the petition is filed shall be liable to the creditors for losses (damage, including emotional distress) caused by this action.
- According to Article 9 of the Law of the Republic of Belarus “On bankruptcy”, premeditated bankruptcy is the bankruptcy of the debtor through the fault of its founders (or members), the owner of its assets or other persons, including the director, with the right to give instructions obligatory for the debtor or otherwise having an ability to determine its actions.
In the event that the court establishes the guilt of the responsible persons when the debtor’s property is not sufficient, the court may appoint subsidiary liability to them for the obligations of the debtor.
We also provide legal services for creditors of companies in liquidation and bankruptcy.
In addition to services related to the bankruptcy of enterprises in Minsk and Belarus, the bankruptcy of a firm or LLC, liquidation processes for LLC and other legal entities, we also provide legal services in the field of taxation.