Bankruptcy: five tips to the owners of the company - the debtor

Abstract

The article is devoted to the economic and legal aspects of the bankruptcy procedure. The risks faced by companies related to small and medium-sized businesses in 2020, mainly due to the impact of the corona crisis, were unpredictable. As a result, many stable operating companies have become insolvent. In the article an attempt was made to answer the following questions. If the bankruptcy procedure is initiated by creditors, how should the founder behave? Is it possible to continue the existence of a company that has survived bankruptcy? The thesis of this article is as follows: «The bankruptcy procedure can serve as a way to improve the fnancial health of the company and restore its solvency. This is not always the fnal point.» The author considers all stages of bankruptcy from the point of view of the possibility to save the company. If bankruptcy proceedings are initiated by creditors, how should the founder behave? Is the continued existence of a bankrupt company possible? The author of the article answers these questions.