Bankruptcy

Establishment of a market economy objectively determines the appearance and development of devices that regulate the processes of production, distribution and consumption of products and services. One of those devices to ensure inflow of capital into more profitable areas, the redistribution of supplies from ineffective businesses to effective, is the mechanism of bankruptcy. It involves a system of control, diagnosis, and ability to protect companies from total collapse.

More recently to recognize the bankrupt can even individuals. To the citizen recognized as insolvent enough to have a debt, which failed to pay within six months. To run the procedure of registration of bankruptcy can both the debtor and creditor.

Ministry of Economic Development proposes to give the status of a bankrupt to citizen only if he can’t repay the debt but still wants to return it to the lender. The debtor goes to arbitration and gets the status of a bankrupt, and with it the installments on the repayment period of five years.

During this time, interest will accrue at a rate of 1 / 2 refinancing. The court takes a decision on restructuring, not taking into account the views of creditors. Restructuring can be reduced, but it will take just a citizen with permanent income. Potential bankrupts, fraudsters also can not feel safe - for all sorts of machinations of criminal liability.

In addition to the debtor and the creditor, the bankruptcy of individuals may begin to register and tax authorities. Since filing a lawsuit creditors within a month must declare their claim against the debtor.

The debtor shall be appointed temporary administrator, and together they must develop a plan of debt repayment. If you can’t pay the debt in installments, the debtor's property sold by auction. However, some things are not to be auctioned off. Not sold a single family dwelling debtor land, household goods, personal things, household appliances. When the bankruptcy procedure is completed, all creditors' claims are extinguished, and the citizen relieved of his obligations.

Bankruptcy procedure is able to solve many human problems, but it also severely limits him. Thus, a person declared bankrupt, can’t borrow from banks for five years (and most likely, and much more) engage in entrepreneurial activities during the year, organize his company (legal entity), receive a variety of loans and assume leadership positions in enterprises.