Declaration of the company as bankrupt is the process of judicial recognition of impossibility to pay off collected (or recently appeared) debts.
Reasons which lead to bankruptcy can be objective and subjective.
The objective reasons can be general economic situation – like that which developed in 1998 and 2008, situation in branch, measures of state regulations and other.
The subjective reasons are mainly unwilling or inability to pay off debts.
For example, quite often there is a situation, when tax check accrues huge debt amounts on taxes, payment of which is simply unreal.
In this situation the only decision is bankruptcy. “Grey” schemes and voluntary elimination in case with tax check do not work, that’s why it is important to understand it at the right time and to find qualified arbitration manager.
Pay attention to whether arbitration manager understand what he is talking about and whether he skilled.
If you’ve found qualified arbitration manager or specialized law firm, then you should not independently prepare your organization to bankruptcy, to make and submit bankruptcy application.
I am not recommending you to do it independently, because bankruptcy has set of reefs and simply reading about it in Internet or having studied Bankruptcy Law, it is impossible to learn to carry out bankruptcy procedures.
Not all things are described in Bankruptcy Law – in addition there is big amount of judicial arbitration practice, and also nothing can replace real bankruptcy experience.
Process of bankruptcy initiation consists of several stages and begins from preparation to bankruptcy.
I do not recommend to pass this stage, because without it serious mistakes can be done, for which unfriendly creditors can be hooked and can disturb carrying out of bankruptcy procedure in planned course.
As example it is possible to give situation, when we acted as these unfriendly creditors and debtor did not care about careful preparation to bankruptcy.
As a result, those transactions, which they drew, were challenged, after all even in contracts they mixed seller and buyer.