Initiating bankruptcy proceedings entails a multitude of legal requirements and documentation. One critical aspect that often arises is the inclusion of the financial report belonging to the enterprise or cooperative. It plays a central role in these proceedings. This query delves into the essential considerations surrounding the initiation of bankruptcy, touching upon the necessity of providing financial reports. Understanding whether these reports are a prerequisite is pivotal. They carry significant weight in assessing the entity’s financial health. In this exploration, we will uncover the role and significance of financial reports in the bankruptcy initiation process. We will also shed light on the procedural intricacies involved in this vital aspect of bankruptcy proceedings.
Question:
Is it necessary for the creditor submitting a bankruptcy petition to include the financial report of the enterprise or cooperative? Similarly, must the worker or trade union representative do the same when submitting a bankruptcy petition?
Answer:
“The person with the entitlement to submit an application for bankruptcy proceedings under Clause 1 and Clause 2 of Article 5 of the Law on Bankruptcy shall only need to submit:
- “Accompanied by the application must be evidence proving the overdue debt” for creditors without collateral or with partial collateral (Clause 2, Article 26 of the Law on Bankruptcy ).
- “Accompanied by the application must be evidence to prove the salary and other overdue debts” for employees, trade union representatives (Clause 2, Article 27 of the Law on Bankruptcy ).
Therefore, they are not required to submit the Financial Statements of the enterprise, cooperative.”
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