Insolvency sign
The company has not performed a monetary obligation or mandatory payment for more than three months.
Court threshold
As a general rule, aggregate qualifying claims must reach RUB 2 million.
Outcome
Rescue is legally possible but never guaranteed; assets, business economics and creditor decisions control the result.
When a company shows signs of bankruptcy
Article 3 of Federal Law No. 127-FZ links a legal entity’s bankruptcy sign to a delay exceeding three months. For acceptance of a petition, the court also checks the procedural threshold in Articles 6 and 33: ordinarily at least RUB 2,000,000 of claims counted under the insolvency rules.
Penalties, fines and other sanctions are not always counted in the same way as principal. A reliable assessment therefore separates principal, interest and sanctions, checks the due date and determines whether an effective court judgment is required.
Who may apply to the commercial court
| Applicant | When it applies | Pre-filing checks |
|---|---|---|
| The company | When it has a right or a statutory duty to file | Articles 8 or 9, accounting, creditor list, assets and corporate approvals |
| Bankruptcy creditor | After the right under Article 7 arises | Judgment, threshold, 15-day registry notice, petition and exhibits |
| Employee or former employee | For confirmed employment-related claims | Judgment and special claim rules |
| Authorised public authority | For mandatory payments under special conditions | Amount, time limits and collection measures |
Corporate bankruptcy sequence
- Grounds review. Debts, delay, judgments, assets, current liabilities and the director’s filing duty are analysed.
- Preparation and filing. The applicant selects the proper commercial court, supplies statutory evidence and serves required copies.
- Merits hearing. The court checks the petition and decides whether to commence the first procedure.
- Supervision. An interim manager reviews finances, the claims register is formed and the first creditors’ meeting is held.
- Choice of route. Financial rehabilitation, external administration, liquidation proceedings or a settlement may follow.
- Completion. The company either restores payments, exits under a settlement, or is liquidated after liquidation proceedings.
Procedures and purpose
| Procedure | Purpose | Main result |
|---|---|---|
| Supervision | Preserve assets and assess the company | Claims register, analysis and first meeting decision |
| Financial rehabilitation | Pay under a schedule while management remains | Schedule performance or transition |
| External administration | Restore solvency under a plan | Creditor payment or liquidation |
| Liquidation proceedings | Collect and realise the estate | Priority distributions and liquidation |
| Settlement | Terminate the case on agreed terms | Court-approved performance terms |
Directors, owners and transactions
Corporate powers depend on the procedure. Management usually continues under restrictions during supervision, while the director’s powers end in external administration. In liquidation proceedings, the liquidation manager controls the estate.
Pre-bankruptcy transactions are reviewed. A deal is not avoided merely because it later appears disadvantageous; statutory grounds such as unequal value, preference or harm to creditors must be established. Potential secondary liability of controlling persons is assessed separately.
Consequences of a company’s bankruptcy
| Stage | What changes | What does not happen automatically |
|---|---|---|
| Supervision | Major decisions and asset disposals become subject to statutory and court restrictions | The director does not necessarily lose every power immediately |
| Liquidation proceedings | Director powers end and the insolvency practitioner controls the estate | Shareholders do not become personal debtors merely because the procedure opened |
| Completion of distributions | The court order is the basis for the liquidation entry in the companies register | Personal liability of controlling persons requires separate grounds and judicial review |
| After the register entry | Liquidation is complete and the legal entity ceases to exist | Records, archives and potential third-party claims cannot simply be destroyed or ignored |
The consequences for a director, shareholder, guarantor and controlling person differ. Company bankruptcy does not automatically discharge their personal obligations or prove secondary liability; each legal basis must be established separately.
Practical pre-filing checklist
- verify the company record, TIN, registration number and address;
- separate principal, interest and sanctions;
- check judgments and effective dates;
- search existing cases and insolvency registry notices;
- review assets, security, enforcement and transactions;
- determine whether the director already has a filing duty;
- build a realistic rescue, settlement or liquidation scenario.
Frequently asked questions
When does a company cease to exist after bankruptcy?
After the completion order takes effect and the liquidation entry is made in the companies register. Opening the case does not itself terminate the company.
Is a RUB 2 million debt enough?
No. The threshold is important, but the court also checks the type of claim, delay, standing and other statutory conditions.
Must enforcement proceedings come first?
Prior submission to bailiffs is not a universal condition. The particular creditor’s standing and evidence must be tested under Article 7 and the nature of the claim.
Can the company be saved?
Yes. Russian law provides rehabilitation procedures and settlements, but the outcome depends on business economics, a viable plan and creditor decisions.
How long does the case take?
There is no reliable universal duration. The procedure, disputes, number of creditors, assets and transaction challenges all affect timing.
Practical corporate bankruptcy guides
Choose the guide that matches your current case stage and the question you need to resolve. Each guide includes a document checklist, relevant legal sources and a practical example.
Entry into the case
Official sources
- Federal Tax Service: bankruptcy of companies and individuals, updated 22 July 2026;
- Federal Law No. 127-FZ on Insolvency (Articles 3, 6–9, 27, 33, 37–40 and 53);
- Russian commercial court case database;
- Unified Federal Insolvency Register.
At an initial consultation we can review the grounds, evidence, objections and procedural route without promising a court outcome.
INITIAL CONSULTATION