Corporate Bankruptcy and Insolvency
Corporate insolvency in Russia is governed by Federal Law No. 127-FZ. Creditors who wait usually receive little, while those who file claims on time and challenge the debtor's transactions stand a better chance of recovery. Elena Petrova acts for creditors and debtors in the Arbitrazh Court of Moscow at every stage of the case.
The procedure moves through supervision (nablyudenie), financial rehabilitation, external administration and receivership (konkursnoe proizvodstvo). A settlement agreement can end it at almost any point.
Stages of an Insolvency Case
| Stage | Purpose | Who manages the company |
|---|---|---|
| Supervision | Analysis of assets, first creditors' meeting | Director, under a temporary manager |
| Financial rehabilitation | Debt repayment on a schedule | Director, with an administrative manager |
| External administration | Restoring solvency | External manager |
| Receivership | Sale of assets, payments to creditors | Receiver |
Entering the Register of Claims
A creditor must file its claim within the statutory period after the publication in the Fedresurs register. A late claim is paid only after the timely ones, which in practice often means nothing. The claim is supported by the contract, primary documents and a judgment, if one exists. The debtor, the manager and other creditors may object, so the evidence should be complete from the start.
Challenging the Debtor's Transactions
Before bankruptcy, owners sometimes move assets out: gifts to relatives, sales below market value, repayment of loans to affiliated companies. The Insolvency Law allows such deals to be declared invalid as suspicious (Article 61.2) or as preferential (Article 61.3). Bank statements and the history of the company's property are the main sources for spotting them.
Subsidiary Liability of Controlling Persons
Directors, founders and actual beneficiaries can be held personally liable for the company's debts under Article 61.10 and related provisions. Typical grounds are failure to file for bankruptcy on time, loss of accounting records and transactions that caused insolvency. For creditors this is often the main way to get paid. For business owners it is the main personal risk.
Protection for Debtors and Owners
A debtor can prepare for a voluntary filing: choose the timing, collect accounting records and document the reasons for financial difficulties. Owners facing liability claims need evidence that their decisions were ordinary business judgment. Inflated claims from affiliated or assigned creditors are also challenged.
Oversight of the Insolvency Practitioner
The manager's actions can be disputed when they harm creditors: delayed asset sales, unjustified expenses, refusal to challenge obvious transactions. Complaints go to the arbitrazh court handling the case. A creditor holding a large share of claims can also influence decisions at creditors' meetings, including the choice of manager and the procedure for selling assets. Participation in these meetings is one of the few practical tools for controlling how the estate is handled.
Personal Bankruptcy and First Steps
Individuals can also have debts written off through bankruptcy; see the Private Clients section. For an assessment, send the claim amount and the status of the debtor or claimant, and you will receive realistic recovery scenarios within one business day.
The main channel of communication with the advocate is email: lawyer@lawyer-moscow.com.