Features of bankruptcy cases
A person may be declared bankrupt by a court decision, on his / her own initiative (voluntary bankruptcy application) or at the creditor's request (forced bankruptcy application) if the debtor is insolvent.
The most important criteria for bankruptcy is that the debtor has to:
- 60 days or more delayed indefinite payment obligations exceeding one million drams,
- and that deduction should be continued at the time of adopting the judgement by the court.
It is noteworthy that bankruptcy manager of a bankrupt person has the right to apply to the debtor in a one-year period after receiving the judgment on recognizing the debtor as bankrupt, to recover the gratuitous transfers made by the debtor (including non-monetary) to the debtor's affiliated persons in the five years prior to the debtor's bankruptcy, or gratuitous transfers made by any of the third parties committed against the debtor for a period of three years prior to filing an application for bankruptcy. Thus, any attempts by the debtor to avoid deliberate bankruptcy and commitment to liability are ruled out, as well as allowing the creditor to recover the amount owed by his choice of the right strategy. However, it should be taken into account that in some cases bankruptcy managers abuse their powers and instead take measures to recover the amount of the creditor and start acting in the right disadvantage, trying to dispute the transactions between the creditor and the debtor. In all the cases described above, it is advisable to contact the lawyer beforehand and avoid excessive failures.