The special Russian procedure for bankruptcy of a company in liquidation applies where a corporate liquidation decision has already been made and the company’s assets are insufficient to satisfy creditors. The liquidation commission or liquidator must apply to the arbitrazh court. Where Articles 224–225 of Federal Law No. 127-FZ apply, the court opens liquidation proceedings without supervision, financial rehabilitation or external administration.
A liquidation decision exists and the company’s assets are insufficient for creditor claims.
After appointment, the liquidation commission or liquidator has the statutory duty to file.
The court declares bankruptcy and opens liquidation proceedings.
When the special rules apply
Two conditions should coincide: an authorised corporate body has resolved to liquidate the legal entity, and the value of its assets is insufficient to satisfy creditor claims. The assessment should reflect the real value of assets, secured claims, disputed liabilities and the costs of completing liquidation, rather than the balance sheet alone.
If an application by a founder, participant, director or the owner of a unitary enterprise’s property is filed after the liquidation decision but before a liquidation commission or liquidator is appointed, Article 225(3) says the case is heard without the special features of this section. The date on which the liquidation body is formed therefore matters.
Who must apply
| Situation | Applicant | Evidence |
|---|---|---|
| Liquidator appointed | Liquidation commission or liquidator | Liquidation resolution, authority and asset insufficiency |
| Insufficiency found before appointment | Founder, participant, director or owner of a unitary enterprise’s property | Liquidation decision and inability to pay creditors |
| Creditor initiative | A creditor where statutory conditions are met | Claim, bankruptcy grounds and debtor status |
Documents for the application
The exact bundle depends on the applicant and facts. Commonly relevant documents include:
- the shareholders’ or other authorised body’s liquidation resolution;
- the decision appointing the liquidation commission or liquidator;
- an interim liquidation balance sheet, inventory and asset records;
- a list of known creditors and the basis and amount of each liability;
- bank accounts, enforcement cases, security interests and litigation;
- evidence of publications and notices already made;
- authority of the signatory and compliance with filing rules.
A bare assertion of insufficient assets is inadequate. The evidence should let the court compare assets with liabilities and see why voluntary corporate liquidation cannot complete creditor payments.
How the case proceeds
- Filing and acceptance. The court checks the applicant’s authority, documents and bankruptcy grounds.
- Bankruptcy judgment. Under Article 225, the court declares the company bankrupt, opens liquidation proceedings and appoints a bankruptcy receiver.
- Publication. The bankruptcy decision is published under the statutory procedure.
- Creditor claims. Creditors may lodge claims within two months from publication.
- Bankruptcy estate. The receiver investigates assets and transactions, maintains the register, brings claims where legally justified and organises distributions.
- Completion. The court considers the receiver’s report and whether to close the proceedings.
Difference from ordinary corporate bankruptcy
The main difference is the shortened procedural route. Supervision, financial rehabilitation and external administration do not apply; the case moves directly to liquidation proceedings. This is not automatic or out-of-court debt cancellation. The court and receiver still examine assets, claims, transactions and the conduct of controlling persons.
This route is also distinct from bankruptcy of an absent debtor. The latter focuses on absence of operations or management and insufficient funds for procedure costs; the present route requires a liquidation decision and insufficient company assets.
Risks of failing to file
Breach of the liquidator’s duty is a ground for refusing to record the company’s liquidation in the Russian corporate register. Article 226 also provides for potential subsidiary liability of specified owners, founders, participants, directors and liquidation officials who breach Article 224, under Chapter III.2. Liability and its amount are determined by the court on the facts, including conduct and causation.
Frequently asked questions
Is an interim liquidation balance sheet always required first?
The filing duty is tied to discovery of insufficient assets. A balance sheet, inventory and creditor records are important evidence, but the court considers the full factual record and when the shortfall became apparent.
Does supervision apply?
Not under the special Article 225 route. However, where the application was filed before a liquidation commission was formed in the Article 225(3) situation, the case proceeds without the special features of this section.
How long do creditors have to lodge claims?
Article 225 provides two months from publication of the announcement declaring the company bankrupt. A creditor should monitor publication and support the claim with evidence of its basis and amount.
Official Russian sources
- Article 224 of Federal Law No. 127-FZ;
- Article 225 on case procedure and creditor claims;
- Article 226 on consequences of breach.
Related: corporate liquidation proceedings, all bankruptcy materials.
The liquidation records, assets and liabilities, applicant’s authority and procedural risks can be reviewed against the facts of the specific case.
INITIAL CONSULTATIONPrepared on 27 August 2026 under Federal Law No. 127-FZ in force on the publication date. This page provides general information.