The grounds and process of bankruptcy are defined by the RA Law on Bankruptcy.
What are the grounds for declaring a debtor bankrupt?
The debtor can be declared bankrupt by a court decision on his own initiative (voluntary bankruptcy application) or forced bankruptcy application at the request of the creditor, if the debtor is insolvent.
Forced bankruptcy
The first and most common ground is to declare a debtor bankrupt if there are undisputed payment obligations in excess of two thousand times the minimum wage set by law and for a period of 90 days or more.
Voluntary bankruptcy
The debtor may file for bankruptcy on his or her own initiative if the debtor's public liabilities exceed the value of the debtor's assets, in the case of a legal entity, based on accounting rules, in the case of a natural person or sole proprietor, based on valuation standards. assessment (balance sheet insolvency).
The value of assets does not include the value of assets that, according to the law, can not be seized.
Which court should I go to to file for bankruptcy?
Bankruptcy proceedings are conducted in the Bankruptcy Court of the Republic of Armenia.
From the moment of filing for bankruptcy, the law prohibits the debtor from giving monetary or other satisfaction to the creditors with its contractual or other obligations without a court decision, performing any action to repay the debt, except for the obligations related to the normal current activities of the debtor.
According to the law, all enforcement proceedings with property confiscations are suspended, enforcement proceedings are prohibited in the indisputable manner defined by other documents.
When should creditors file claims against a debtor?
Creditors submit their claims to the court within one month after the declaration of bankruptcy.
According to the law, the creditor's claim must be mentioned
- the creditor presenting the claim
- for a legal entity: name and location;
- for a natural person - name place of residence.
- the obligation from which the claim arises, as well as the period of fulfillment;
- the amount of the claim, indicating separately the amount of the main debt, losses, penalty (fine, penalty) with appropriate calculations.
- the circumstances justifying the claim.