The bankruptcy of legal entities: cost


Bankruptcy is called the inability of a company to conduct business because of a lack of funds, through which there is a problem with the inability to settle the debt of the company.

A set of laws and several regulatory and legal acts of Ukraine defines and strictly controls the procedure of bankruptcy of legal entities. Refraining such an order is mandatory for all parties to the proceedings.

The bankruptcy of the enterprise is aimed not only at liquidation of the business, but also at financial rehabilitation of the enterprise. The latter implies a full financial renewal of the company and further development in the future.

Only highly qualified specialists will help you in difficult tasks, as bankruptcy for a particular type of enterprise. The bankruptcy procedure is carried out according to all legal requirements.

The bankruptcy procedure is possible for such types of enterprises:

  • for businesses with high debt to partners;
  • for creditors who have the objective of recovering their debt from an insolvent enterprise.

For a legal entity, bankruptcy has some pros and cons. The recognition of the insolvency of an enterprise results in a number of advantages: 

  • there is a chance to preserve the property of the enterprise from alienation;
  • no opportunity for the seizure of assets or funds;
  • the company develops for itself a productive plan to return to solvency and fulfillment of obligations to creditors;
  • business is protected from having means of withdrawal, which are not taken into account by law;
  • the company/enterprise will be able to resume operations as a legal entity;
  • it is possible under the law to write off the debt, including, if the enterprise has lack of money to repay it;
  • if there is evidence of innocence, the owners and managers of the enterprise can avoid administrative and criminal liability.

Among the disadvantages of the bankruptcy procedure for a legal entity:

  • the bankruptcy process is quite long, sometimes this process can take a couple of years;
  • the bankrupt enterprise is obliged to pay all costs related to the court;
  • in the bankruptcy of an individual enterprise, the disadvantages of bankruptcy can be attributed to the fact that from the moment of recognition of insolvency, the company and its management will be given increased attention;
  • all licenses that the entrepreneur has previously received will be revoked, and their retrieval will be a rather difficult process;
  • due to the revocation of licenses, the IP will no longer be able to carry out the activities it has previously introduced.

In which cases bankruptcy lawyer’s services are required

  • the bankruptcy process is very difficult and requires specialized knowledge, as it contains legal norms;
  • In more than 15 years of work in the market of Ukraine, our lawyers gained enormous experience, that allows to carry out the procedure with high-quality and speed;
  • a professional team of lawyers will be able to help to mitigate all issues, minimize the risk and conduct the procedure according to the law.

Features of juridical support of the bankruptcy process of the enterprise

The collaboration starts with an interim assessment of the situation, an analysis of the volume of work and its actual achievements. Our specialists conduct an analysis on:

  • Accounting department. The data is taken for the last three years of the operations of the enterprise. The obtained data forms conclusions about the causes of bankruptcy – intentional, fictitious or real;
  • The prospects of the lender. The task for specialists – to find creditors who will be inclined to peaceful settlement;
  • The options of legal methods to avoid liability from the customer;
  • The potential informativeness of previously lost documentation;
  • Disclosure of information about the debtor. Having full information will add a greater percentage of success.

At the end of the stage above, experts provide a report with the most advantageous strategy. It lists future risks and options for overcoming them, provides a preliminary cost and time frame for the procedure.

Cost of procedure through bankruptcy proceedings

The cost depends on many criteria:

  • the region where the enterprise is located;
  • company’s turnover;
  • the number of employees in state;
  • features of accounting;
  • many other factors.

The price of the package of services includes:

  • risk assessment for the enterprise;
  • correspondent services
  • complex support of business bankruptcy and a specially developed proposal: audit of interim liquidation balance, audit report.Guarantees from S&P Agency:
  • Agency professionalism. We have successfully completed many bankruptcies of enterprises;
  • The whole process is carried out strictly within the limits of the law;
  • Confidentiality;
  • Going through the bankruptcy procedure in the available short terms;
  • We are reliable partners for your business. We have special permits and knowledge.

Before you start bankruptcy proceedings, you should do everything possible to pay off debts. A default declaration is permissible only if there are no other possible steps.

Legal support the S&P Agency provides on the bankruptcy of an enterprise is the key to success in the development of a new stage of your business.

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