Procedures for Enterprise Bankruptcy

The enterprises falling into bankruptcy are those having difficulty or loss in business activities after applying the necessary financial measures but have lost the ability to pay due debts.

To consider an enterprise whether falling into bankruptcy or not, must be based on two conditions:

• Loss of ability to pay due debts
• Loss of ability to pay due debts is not temporary phenomenon but severe of the nature and cannot overcome.

Those are entitled to submit application for bankruptcy request:

• Creditors
• The employee in the case of the Company disabling to pay salaries and other debts
• The owners of state enterprises
• The shareholders of Joint Stock Company
• General partners of the Partnership Company .

Request Application for opening bankruptcy procedures must have the main following contents:

• Date of Application;
• Name and address of Applicant;
• Name and address of the enterprise falling into bankruptcy;
• Debts uninsured or ensured a due part that not be paid by the enterprise or cooperative;
• The process of debt collection;
• Based on the requirements of opening the bankruptcy procedures.

Procedures for enterprise bankruptcy:

1. Submit application for request and open bankruptcy procedures;

2. Enclose the following documents and papers:

• Report on business activities of enterprises in which explains the causes and circumstances relating to the loss of solvency; if the enterprise is a joint stock Company  required to be audited by the Law, financial statement must be certified by the independent audit organization;
• Report on measures that the Enterprise performed but cannot overcome loss of solvency for due debts;
• A detailed list of assets of the enterprise and the visible location of assets;
• List of creditors of the enterprise clearly stating name and address of the creditors, banks where the creditors have their accounts, due debts ensured and uninsured, undue debts ensured and uninsured;
• List of debts of the enterprise clearly stating name and address of the creditors, banks where the creditors have their accounts, due debts ensured and uninsured, undue debts ensured and uninsured
• List clearly stating name, address of the members, If the enterprise in debt if a Company  with members jointly liable for the debts of the enterprise;
• Other documents required to provide by the Court under the regulations of the Law.

Time for settlement:

• Making decision whether opening or not bankruptcy procedures: 30 days from the date of acceptance of record of the Court.  .
• Listing the list of creditors, debtors: 60 days from the date that the Court makes its decision to open bankruptcy procedures.
• Complaints and settlement of complaints: 15 days from the date of listing.