If a company has a lot of debt and is insolvent

If you find yourself in a situation where debt obligations become an overwhelming burden and your company is unable to meet its financial commitments, one of the most effective ways to resolve this issue is to initiate bankruptcy proceedings. The bankruptcy process for a legal entity is a multi-stage and often lengthy procedure that can take several years and requires a serious approach and careful examination of all aspects.

Bankruptcy is not simply about declaring a company insolvent and obtaining the corresponding legal status. It is only the beginning of a complex journey that involves numerous legal and financial procedures. Throughout this process, it is crucial to clearly understand your rights and obligations as stipulated by law, know how to exercise them properly, and protect your interests. You must be prepared for potential challenges from creditors and their representatives, as well as possible dishonest actions from arbitration or bankruptcy trustees who may pursue their own interests.

The Federal Law “On Insolvency (Bankruptcy)” dated October 26, 2002, No. 127-FZ, is the primary legislative act that regulates all aspects of the bankruptcy process. This law outlines the fundamental provisions that determine the procedure for declaring a company bankrupt, as well as the rights and obligations of all parties involved. Understanding and correctly applying the provisions of this law plays a key role in successfully completing the bankruptcy process with minimal losses for the debtor.