Insolvency Practitioner

An obligatory participant in any bankruptcy procedure is an insolvency practitioner. It is an individual, a professional participant, a member of a self-regulatory organization of insolvency practitioners (hereinafter - SRO). They are appointed by the court to represent the interests of the debtor, creditor and the state in each specific case.

The law imposes a number of requirements on the candidacy of an insolvency practitioner, the observance of which allows them to perform their functions professionally and independently. At the same time, the insolvency practitioners bear special responsibility for causing actions that have entailed losses for other participants in the case. 

The work of the practitioners are paid for by the debtor or the creditor-applicant at the rates specified by the Bankruptcy Law (from 15,000.00 rubles / month to 45,000.00 rubles / month, depending on the stage of bankruptcy).

In the law itself, and often in the media, you can find various names of practitioners - temporary, administrative, external, competitive, which for an unprepared person means that at least 4 different people are conducting the procedure. In practice, all these are the names of one person - an insolvency practitioner in a broad sense, who at different stages of bankruptcy changes its name and the corresponding rights and obligations.

The law does provide for the possibility of replacing the insolvency practitioner during the transition to each new stage of bankruptcy at the initiative of the meeting of creditors, but we recommend entrusting the procedure to one person who can fully immerse themselves in the specifics of the debtor's activities and more efficiently perform their functions, seeking to satisfy the claims of creditors or, conversely, preserving the debtor company, depending on your interests.

As the stages of bankruptcy change, the range of rights and obligations of the practitioner expands. At the stage of observation, the practitioner can collect information, form a list of creditors, but he/she does not compete with the key figures of the company (management), but acts solely for the purpose of assessing the financial condition of the debtor. And only at the stage of bankruptcy proceedings, the insolvency practitioner assumes all the functions of the debtor's governing bodies, gets full access and control over the debtor's activities and can independently conclude transactions on his/her behalf, make claims to other persons.

Thus, the choice of an insolvency practitioner can be a key moment for the successful conduct of an insolvency (bankruptcy) procedure.

As mentioned earlier, the final decision on the appointment is made by the judge, however, the candidacy is submitted by the first creditor-applicant who initiates bankruptcy. The practice has developed in such a way that in the application for declaring a legal entity bankrupt, it is necessary to indicate the SRO from which you want the insolvency practitioner to be selected. Then, having accepted the application for proceedings, the court sends a request for a candidacy to accompany the case to the specified SRO, where the desirable candidate is aware of the start of the procedure in advance and immediately sends his/her consent to the court, the debtor and the creditor.

Thus, the insolvency practitioner has been appointed and takes up the duties.

TEAM has been fruitfully cooperating for a long time with several insolvency practitioners who are distinguished by great success in conducting bankruptcy procedures of varying complexity, and is always ready to assist both in the conduct of the procedure and in cooperation with other professional market participants.