The first to sue and recommend a bankruptcy commissioner to the court of law takes the lead. Other participants have to catch up.
As a result of recession, a significant number of companies have found that they cannot serve their obligations to the full.
Bankruptcy is the only civilized tool to balance the interests of both creditors and debtors in a state of insolvency. The bankruptcy procedure applies if interests of either side prevail.
Undoubtedly, an enterprise cannot become a bankrupt in a day, it takes years. It happens for various reasons and managers and owners are not always the ones to blame.
At the first signs or symptoms of a possible insolvency, bankruptcy should be prepared for in advance. It must be understood that we do not speak about creating simulated creditor indebtedness and other subterfuges.
On condition that a company fails to pay the claims immediately or within a reasonable period of time, the management should take into consideration the bankruptcy procedure as a guarantee of keeping the balance.
In Russia, being the first to sue is a key factor. The applicant introduces a bankruptcy commissioner to the court, which decides if the candidate is suitable and confirms the appointment. The risks are that the commissioner will work in favour of the applicant, not the balance. The question of who is the first to sue and to take the privilege to recommend the candidate for a bankruptcy commissioner is closely connected to the issue of objectivity of the procedure.
The first to sue and recommend a bankruptcy commissioner to the court of law takes the lead. Other participants have to catch up. This condition does not depend on bails, deposits or, most importantly, the dominance in the total amount of the accounts payable. During the process of bankruptcy there is almost always competition between the creditors (for control of the debtor’s assets) and debtors (for security of their property). The chancas are the debtor might lose if the bankruptcy commissioner is an interestad person. The independence of a bankruptcy commissioner should be considered before the creditors file for bankruptcy to the court.