The procedure on insolvency consists of the steps:
- Supervision. This procedure applies to the debtor to maintain safety of the debtor’s property, to analyze the debtor’s financial status, to draw up the Register of creditors’ claims and to hold the first meeting of his creditors.
- Financial improvement. It applies to the debtor to restore his solvency and repayment of debts according to schedule of repayment.
- External management. It applies to the debtor in order to restore his solvency.
- Recognition of the debtor’s bankruptcy and initiation of the bankruptcy proceedings.
- Amicable settlement agreement. Signing of it could be applied at any stage of bankruptcy case consideration by the court, which concludes the bankruptcy procedure after reaching an amicable agreement between the debtor and its creditors.
Creditors’ claims are satisfied in the following order:
- Individuals injuries claims
- Employees entitlements including wages and severance pay, and payments under author’s contracts
- Claims of other creditors