Bankruptcy Procedure legal entities

Abstract

Issues of bankruptcy of legal entities within the framework of the current Federal legislation are relevant for business entities engaged in commercial activities. One of the solutions to the financial difficulties of the organization for settlement with creditors is the bankruptcy of a legal entity. The paper considers the economic essence of the concept of «bankruptcy», provides step-by-step instructions on the recognition of a legal entity as such, and also identifies the possible consequences of the financial crisis. The main signs of insolvency (bankruptcy) of the organization are highlighted, the procedure of financial recovery and condi-tions that contribute to this are disclosed. It is emphasized that in some cases, for organizations that are absorbed by obli- gations under credit agreements, the bankruptcy procedure becomes the only way out of the vicious circle of back-breaking payments on loans. This exit from business is completed after carrying out activities for the maximum possible repayment of debts to creditors.