Bankruptcy process is understood to mean the activity of the state regulated by law in the person of authorized bodies, courts, specially appointed administrators (temporary administrators, special administrators, conservatives, external managers) in the manner established by law, creditors with the goal of satisfying the requirements of the debtor's creditors, as well as restoring the solvency of the debtor or termination of its activities.
Although the law defines the bankruptcy process as a means of satisfying the claims of creditors of an insolvent debtor, however, practice reveals other possibilities of this procedure. Often, bankruptcy is used as a way to evade liability to creditors - bona fide entrepreneurs, and sometimes it is used as a legal tool to pressure a business or seize it. It is important to understand that without the help of specialists in this field, bankruptcy proceedings can create additional costs for both the lender and the debtor. Nevertheless, the ability to correctly apply and manage bankruptcy procedures can lead to a win-win situation where, on the one hand, the interests of creditors are respected and, on the other hand, there is an opportunity to improve the business.