FZ No. 127 on insolvency dated October 26, 2002. Recognition of bankruptcy

Any economic activity in the modern world is always certain risks. It's great if a person engaged in making money in this sphere understands the possibility of a financial collapse. Otherwise, you can be one on one with disastrous factors of the market. Nevertheless, even taking into account the presented features, economic activity is becoming more popular. This trend is due to the high liquidity of this sphere. People understand that it is possible to get a big profit only in the process of direct interaction with the market or its immediate segments.

Thus, in the Russian Federation today, almost daily there are new companies, firms, individuals - entrepreneurs. But the main problem lies in the risks, which are written at the very beginning of the article. In practice, often a participant in economic activities can not meet all of its obligations of one kind or another. Recognition of bankruptcy in this case is the only way of a civilized solution of the problem. To date, everyone knows this term, but many do not know the true meaning of it. Let's try to explain the essence of the category of "bankruptcy", as well as highlight its key features and regulatory framework.

The concept of insolvency

Insolvency, or bankruptcy, can be viewed in several angles. Such a normative act as Federal Law No. 127 "On Insolvency" gives a legal description of the concept of bankruptcy. However, it can also be viewed from the position of the economy. The most correct characteristic of insolvency has economic and legal aspects. Thus, taking into account the theoretical background of this issue and its normative characteristics, it can be said that insolvency is a procedure carried out by state bodies to recognize the inability of a debtor to pay for all available liabilities in full. In this case, according to the provisions of Federal Law No. 127 "On Insolvency", such claims include credit claims, obligations to pay proper state taxes.

Positive concept of procedure

It should be noted: not everyone knows that the bankruptcy procedure is aimed not only at recognizing the debtor's inability to meet its obligations. More often than not, the procedure for improving the financial position of the debtor precedes the full inconsistency. In this case, various economic and legal measures are applied to the latter, which often allows achieving positive results. If the application of these measures is impractical or simply impossible, the person is declared bankrupt.

The subjects of the procedure and the body

Considering the rich world practice in this sphere of financial activity, it is necessary to note legal entities as the main subjects of the bankruptcy procedure. However, in a number of countries there are mechanisms for recognizing insolvent individuals as well. In the Russian Federation to date, in the legal field are both the first and second. The main body for the implementation of the procedure in the Russian Federation is the arbitration court. In the legal system, the institution of bankruptcy belongs wholly to the entrepreneurial branch of law.

Normative regulation

Recognition of this or that subject bankrupt is a rather laborious and extremely complicated process. In order to avoid any negative consequences for all parties to this process, the legislator issued a special regulatory act. With its help, bankruptcy is directly regulated by the law. This is Federal Law No. 127 "On Insolvency." It details the information on all the main provisions of the procedure for recognizing insolvency, and so on.

the federal law

The legislative act (127-FZ of 26.10.2002) is a special legal document that regulates the court's recognition of a legal entity as insolvent. He regulates the procedure for the liquidation of such a person and the satisfaction of all claims of creditors. In the economy of the Russian Federation, Federal Law No. 127 "On Insolvency" Consolidates the fundamentals of the Russian economy. The normative act consists of 12 chapters and 233 articles. If you analyze the provisions of the law in detail, you can identify the individual components of the entire procedure. They are completely autonomous. However, their presence testifies to the unified structure of the entire procedure for the recognition of insolvency.

Separate stages (procedures) of bankruptcy

The Federal Law on Insolvency describes several basic procedures applicable to the debtor with a view to improving its financial position. Thus, the following procedures are most often used:

• Observation;
• Financial recovery;
• Competitive external management;
• Amicable settlement.

All the stages above are not intended to destroy the debtor. On the contrary, in most cases everyone wants to stay with their own (creditors get their money, debtors do not lose their favorite business). All these procedures differ not only in their ultimate goals, but also in the way they are implemented.

Subjects of procedures

Each of the above procedures during the recognition of a legal entity as a bankrupt is carried out by a specific entity of financial activity. This is their difference, because, depending on the specialist, the end result will vary. Thus, supervision is carried out by a temporary administrator, external management by an external manager, bankruptcy proceedings by a bankruptcy administrator, and financial recovery by an administrative manager. This feature is fully regulated by 127-FZ "On bankruptcy".

Tasks of the insolvency process of the debtor

Like everything else in this world, the process of bankruptcy recognition also has its own specific tasks. Consideration of bankruptcy cases is carried out to achieve two key objectives, namely:

1. Repayment of debts to creditors. When a person can not in any way be responsible for his obligations, the state becomes one of the creditors, as proper payments are not received to him. Thus, debt collection becomes a priority, because there is an interest of the country, which, in turn, contributes in all possible ways.
2. The second priority is to restore the debtor's solvency. It is for this in the early stages of creating a plan for financial recovery. With its help, you do not need to remove one of the players of the national market. It is much more correct to help, for example, to restore the company its "economic fortune." In this case, the interest is the possibility of further development of the occupied market segment and the economy as a whole. To achieve the set goals in this case, a sanation plan is drawn up. This stage exists for restoration of solvency. The rehabilitation plan, in turn, allows you to streamline the process and increase its efficiency.

A concrete choice between these directions is done directly "on the spot", when the exact fate of the person is known.

Characteristics of the first phase of bankruptcy - observations

In order to understand the essence of the institute's work in more detail, it is necessary to analyze the main stages of its implementation. As mentioned earlier, the first step is called surveillance. In accordance with Federal Law No. 127 "On insolvency," surveillance is one of the bankruptcy procedures that is used to analyze the financial condition of the debtor, preserve its property, etc. The procedure is mandatory, so it is always implemented. This is due to the great importance of observation. After all, before making a decision to liquidate or improve the enterprise, you need to collect enough information of a financial nature, so that the decision was justified by the facts.

For the beginning of procedural supervision the permission of the arbitration court is necessary. If it is, the debtor begins a direct analysis of the expediency of its future activities. First of all, it is necessary to identify absolutely all debts in order to analyze their essence. This is done through a committee or a meeting of creditors. In some cases, the creditor has the right to completely suspend a separate line of activity in connection with the collection of cash. To implement this right, there is such an institution as a creditor's application. It should be remembered that procedural observation is an opportunity to get out of the debt hole. The main advantage is that the individual bodies of the debtor are not liquidated, although some restrictions in their work may be present.

However, the bankruptcy of LLCs or organizations of a different legal type at the monitoring stage occurs with the appointment of a temporary administrator. This subject of the process acts independently, in parallel with the "original" steward of the debtor's company. It should be noted that the role of the temporary manager is quite large. In fact, when the bankruptcy of an LLC or an organization of a different legal type begins, some transactions of the company can be made only with its written approval. To transactions of this kind can be attributed:

1. Operations directly related to the implementation or other type of disposal of property, which has a value of more than 5% of the total balance sheet assets of the organization.
2. Financial activities: issuance of guarantees, loans, loans, etc. The application of the debtor for its permission in this case is mandatory.

Thus, the observation stage is the starting point for the implementation of the insolvency process. With its help, a further choice of additional procedures is carried out.

Optional procedures

As mentioned earlier, surveillance is the main, mandatory procedure for filing insolvency. In this case, financial recovery, external management, bankruptcy proceedings and a settlement agreement are additional procedures. They may need a process of recognizing bankruptcy. However, the specific choice of a particular secondary procedure will depend entirely on the findings made at the observation stage. Thus, additional steps are implemented only after an analysis of the financial activities of a physical or legal person. All the stages presented contain the Federal Law. 127-FZ in the latest version (full text) was published on official websites of federal and regional authorities, as well as in the media.

Conclusion

So, in this article, we examined in detail the financial and legal process of bankruptcy, as well as the ways of its implementation. In conclusion, it should be noted that many of the mechanisms for implementing this institution have not yet been brought into the form when they can be used without problems in the legal and economic field. And even the latest edition does not give unambiguous interpretations of the procedure. Perhaps in the near future, lawyers and economists will jointly invent the most successful construction of the institution of bankruptcy, which will allow it to be properly and correctly performed, to save debtors, and not to liquidate enterprises.