Alexander Shugaev, Lawyer of Levant & Partners law firm: “Starting self-bankruptcy can be the one way to save control over own property”

Reсently the Arbitration court of Moscow informed that the number of suits on inappropriate carried contract obligations up to 64,6% to last year, so the number of bankruptcies are going to growth this year.

Alexander Shugaev, Lawyer of Levant & Partners law firm, said that on 2009 the bankruptcy proceedings will be governed by the RF Law on Bankruptcy as amended. Amendments consider the creditor’s interests mostly. In particular, pursuant to amendments, the creditor’s got right to apply petition to recognize the company as bankrupt after issuance by the court of a decision on collection debts. Earlier creditor could not initiate bankruptcy proceeding within 30 day after issuing the court decision on collecting debts. But the bankruptcy proceeding could be initiated both authorized organizations and the debtor on its own.

“Sometimes the self-bankruptcy is the best way for debtor to save the control over own property”, said Alexander, “If the bankruptcy would be initiated by creditor, the debtor would keep less possibilities to control assets and less chances to survive in business”.