Bankruptcy of absent or liquidated debtor and simplified bankruptcy procedures

In order to quickly exclude property of companies which actually stopped working from economic turnover so-called simplified bankruptcy procedures are applied. They also can be applied to remove assets of company which undergoes liquidation procedure or whose location cannot be determined. 

To simplify the process of declaring a company insolvent, reduced duration of its conduction is applied. This ensures more favorable conditions for the parties of bankruptcy relationship.

Legal entity’s bankruptcy in simplified manner has following advantages:

• there is only one stage – bankruptcy proceeding;
• reduced terms: from 6 to 9 months, whereas the normal bankruptcy process usually takes more than a year;
• deadline for closing register of creditors’ claims is 1 month instead of two in normal bankruptcy procedure;
• economy of money.

Thus, simplified bankruptcy procedure can be applied in two following case: when debtor is at the stage of liquidation and when debtor is not present at all, so it is impossible to determine its location. Such procedure helps to get rid of accumulated debts in relatively short period and with minimal costs.