Different kinds of bankruptcy of enterprises

Bankruptcy is a financial crisis,characterized by a stable inability to meet the demands of creditors. Such a situation, as a rule, arises not simultaneously, and the reasons for its development can be many. In the world practice, even their own criteria have been worked out, according to which the bankruptcy of the enterprise is evaluated and its types are singled out.

Early signs of bankruptcy

In fact, the main signs, with the help ofwhich can already in the early stages determine the impending bankruptcy of the enterprise, not so much. This is primarily a delay in the timing of reporting. Such a factor may indicate financial fraud or simply the poor performance of the financial services of the enterprise.

Another criterion, which should be paid attention, are conflicts in the enterprise, the dismissal of people from key posts and a sharp increase in management decisions.

To less significant symptoms of the impending bankruptcy, which still should not be discounted, are:

• significant decrease in cash on accounts;
• a sharp increase (decrease) in receivables;
• reduction in production and sales;
• increase in accounts payable.

Real and fictitious bankruptcy

Bankruptcies of enterprises receive the status of realIn the event that in the period under review the entity incurred substantial losses of capital. In this regard, it is completely untenable in terms of restoring its solvency. Further economic activities of such an economic entity can harm both its counterparties in particular, and the entire industry as a whole. Therefore, such a debtor is legally declared bankrupt.

The complete opposite of the real arefictitious bankruptcies of enterprises. They are characterized by the fact that the debtor himself applies to the arbitration court. Most often, the reason for such actions is the desire to obtain discounts and installments to pay debts, or even a deviation from their payment. If it is proved that the debtor at the time of filing such a statement was able to satisfy in full all the claims of creditors, then he will be responsible for the damage caused to him.

What is the stage of bankruptcy and technical bankruptcy?

If the enterprise is in a bankruptcy stageor declared a technical bankrupt, this does not mean that it should cease to exist. So, for example, there are 3 stages of bankruptcy of enterprises:

1. A hidden decrease in the price of an enterprise.
2. Financial instability.
3. Legal bankruptcy.

Enterprises in the early stages of bankruptcyStill can normalize the activity at correct financial management. The same applies to technical bankruptcy. This term indicates the situation when the payable of an economic entity arises from a significant delay in payment by its debtors. An essential condition for the recognition of bankruptcy as purely technical is the excess of the amount of its uncollectible receivables over the accounts payable.