Why Bankruptcy Became a Competition – Economist – DOS


February 16, 2023, 17:27 – BLiTZ – News Bankruptcy of legal entities has long become something of a service, a saving word for debtors. Many find a way out of their sinking ship in this to write off all debts and get rid of oppression, and today it has become a real competition between borrowers and lenders.

Mikhail Alekseev, expert of the People’s Front project “For the Rights of Borrowers”, editor-in-chief of the portal Fingramota.rf, explained News-TV how it works.

“Bankruptcy is a story that is adversarial”

“Bankruptcy is a story that is competitive. The bankruptcy of a legal entity is not so much adversarial as the bankruptcy of an ordinary individual,” he said.

The specialist also recalled the specifics of the bankruptcy procedure for a legal entity. According to him, the person of the arbitration manager plays the most important role in this case.

“It just so happens that there is a chess game here, that is, creditors in the bankruptcy proceedings of a legal entity have much more rights. That is, there is no social program, such as “let’s take pity on a person from the bankruptcy of citizens,” one cannot see, ”explained Alekseev.

To file for bankruptcy of a legal entity, according to the expert, certain algorithms must be followed.

“Whoever files for bankruptcy is the one who finances it”

“If, for example, a legal entity has some debts, or its creditors, there are many of them and they are small, I will try to think about what to do so as not to go through the bankruptcy procedure of a legal entity, because it is expensive. But the one who files for the bankruptcy procedure finances it, and the corresponding obligation is signed, ”the specialist is sure.

Alekseev specified that when a creditor files for bankruptcy against a legal entity, he will be required to confirm that the person finances this procedure.

“And this is at least 30,000 rubles a month for an arbitration manager, expenses that may relate to procedural publications – in a newspaper, on electronic platforms. These are auctions that will be borne by the arbitration manager, ”he said.

Alekseev clarified that if the arbitration manager does not find anything, then the debtor will still have to pay.

“This is an entire industry, it is gigantic in its competitiveness. Often companies go to some tricks, creating their friendly accounts payable. Both the debtor and the creditor can evade liability,” the interlocutor of the News emphasized.

According to Mikhail Alekseev, the main danger in the bankruptcy of a legal entity for the management of the company is bringing to subsidiary liability and recovery of losses from the person controlling the debtor.

“It happens that a person has a business, it is not registered for him, he withdraws all the money and hides it from debtors”

“This person can be a director of a company, a founder, an accountant, a lawyer, and even a person who is not an employee of this company, if it is proved that he gave some orders. It happens that a person has a business, it is not registered for him, he withdraws all the money and hides it from debtors, ”the specialist believes.

Thus, many, according to the expert, hope that they will be liquidated for not matching their legal address.


Please enter your comment!
Please enter your name here