When a company is declared bankrupt
Under article 57 of the Civil Code, the court may declare a commercial legal entity insolvent if it cannot fully satisfy creditors' claims on monetary obligations and (or) pay taxes and duties.
Who can file the application
Under article 211 of the Economic Procedure Code: the debtor, the creditors and other interested persons.
The main stages
The economic court hears the case. Under article 210 of the Economic Procedure Code, the court applies the special rules in the Law on Insolvency. That Law sets the procedures, their order and their time limits.
Important for a creditor
If you learn that a case was opened against your debtor, state your claim without delay. The law sets the time limit and the procedure for stating a claim.
Advice
Check the financial condition of a counterparty before you sign a contract. After a bankruptcy, the chance of recovering money drops sharply.