Financial Future

Results of the research of the reasons of occurrence bankruptcy allows to allocate the following types of bankruptcy: a) casual; b) idle time and c) criminal.

Bankruptcy of the subject of enterprise activity can be qualified as casual if the debtor became insolvent not on his own fault, but due to unforeseen circumstances. As, for example, act of nature, delays in calculations, insolvency, bankruptcy of his debtors and so forth. The bankruptcy which has resulted the unforeseen reasons, should not attract the criminal liability.
Simple bankruptcy – the bankruptcy which has arisen on imprudence, as a result of action of the reasons concerning directly to managing of the subject. So, in pre-revolutionary Russia, bankruptcy was considered to be simple if its reasons were: excessive expenditure of the debtor as actually on himself, and on trading operations (for example, on advertising) and even on the charitable purposes; or not fulfilling of usual measures of the care necessary for preservation of the property (for example, not be insured during the transportations or levity in business management).

In the countries with the developed market relations the bankruptcy which has arisen on imprudence, is similarly defined in the modern legislation of Italy, Sweden, Germany, France and involves the criminal liability, unlike the legislation of Ukraine.

Let’s formulate the concept of «criminal bankruptcy» with a view of specification of use of this term in the system of the offered classification of its kinds. Criminal bankruptcy is the bankruptcy of the debtor which has resulted in his deliberate mercenary actions, connected with artificial creation of a situation of insolvency either its concealment, or the announcement of the insolvency in the presence of actual possibility to extinguish debts.

Thus, classification of the types of bankruptcy is necessary from the point of view of the organization of their management Casual bankruptcy – is an offence which should be punished easily, and simple and criminal bankruptcy – are the crime which should be punished severely. As specified professor V.M.Gajvoronsky and M.I.Titov, «the criminal liability for bankruptcy and in the majority of the countries of the West comes only when it arises because of the debtor».
Thus, as a result of research it is proved that with a view of management of bankruptcy the absence of causally-specific classification is a considerable lack. On the purpose of probably fuller account of the reasons of occurrence of bankruptcy it is offered to divide the reasons on groups and to accumulate them proceeding from actual arbitration cases about bankruptcy, asking for the consulting help with a view of enterprise preservation, conducting the catalogue of such reasons. Such generalization of the reasons allows allocating types of bankruptcy on the basis of a generality of character of their occurrence, that is necessary both at judicial level , and at realization of extrajudicial management by bankruptcy of subjects of managing.

Practically all of us remember the times when it was possible to buy something even if one hadn’t got enough funds. Loan was a simple way out. It is not surprising that now many of those who hunted for a credit, are looking around for how to avoid bankruptcy.

Those people who happened to get into the situation when their expenses exceed their earnings, definitely have to look for ways to avoid bankruptcy.

If facing such difficulties it is wise to use any ways to get over it. Use such wonderful chance as the web technologies. Using them at full capacity can give great results. Working with search engines, forums, social networks,web sites one will learn many tips to avoid bankruptcy and a great deal of other important info. Also subscribing to RSS feed on this blog will help to be aware of new publications and tips on the topic.

You should know that the classification of the different types of bankruptcy is really necessary. And makes the process of their management easier and helps to understand better the aims and possible solutions of this or that type of the bankruptcy.

-On the character of occurrence of the reasons to a source of bringing the damage they should be subdivide into the reasons, created: a) by own actions of the debtor (deliberate or inadvertent); b) actions of the third parties; c) natural cataclysms and acts of nature, industrial accidents.

- On the time of action of the reasons they can be subdivided on: a) short-term and b) long term action.

As an example of the reasons of short-term action can be the absence of the permission to delivery of the goods, a delay in calculations. The reasons of long-term action – can be the errors and omissions in operation of the business: high expenses, low profitability, carrying out of unprofitable operations and other reasons concerning directly to managing of the subject.

- On the possible influences of the enterprise on the reasons of occurrence of their bankruptcy should be subdivided on: a) eliminated by the enterprise itself (insolvency, a bad management, etc.); b) difficultly eliminated (legislation correction, etc.); c) not eliminated (acts of nature, accidents).

- On the possible diagnosing and forecasting of the reasons of bankruptcy it is possible to point out: a) diagnosed (at the enterprise itself); b) predicted (solvency of the business partners at the making of the contracts); c) not possible to be forecasted (bankruptcy of business partners, natural cataclysms and acts of nature, industrial failures).

Studying of causal dependence of occurrence of bankruptcy of managing subjects on the offered classification is necessary both in the course of the general management of bankruptcy, and at a stage of arbitration management. That means, if in the course of arbitration manufacture the facts testifying on deliberate, mercenary actions of the debtor to his own advantage or to the third parties then according to the current legislation the cases come into the view of the Offices of Public Prosecutor and the further consideration and studying of such cases demands already the management according to the Criminal code (CC) of Ukraine.

For economy of Ukraine at the present stage all three pointed out types of bankruptcies are characteristic. According to the current legislation, the persons initiating arbitration manufacture on the cases about bankruptcy, can be both creditors, and the debtor. Hence, it is possible to allocate the following forms of bankruptcy: compulsory (under the statement of creditors or the public prosecutor) and initiative (under the statement of the debtor).

In the next part of our article we shall speak more about the Criminal Bankruptcy. So stay with us and get more information on this topic.

Practically all of us still remember the times when one could easily buy a thing even if one hadn’t got enough money. Credit was a simple way out. No wonder that today many of those who hunted for a credit, are looking around for how to avoid bankruptcy.

Those people who happened to get into the situation when they owe more money than they have, definitely should search for ways to avoid bankruptcy.

If facing such difficulties it is smart to use any ways to get over it. Use such unique opportunity as the online technologies. Using them at full capacity could give great results. Making use of search engines, forums, social networks,web sites one can discover many tips to avoid bankruptcy and a great deal of other important info. Also subscribing to RSS feed on this blog will help to keep track of new publications and tips on the topic.

By the nature of occurrence of the reason the types of bankruptcy are possible to subdivide on: a)cybernetic on macro- and micro level; b)cultural-ethical) the casual; and d) criminal.

The cybernetic reasons are widely enough highlighted in the economic literature in works of prof. B.I.Kuzin, prof. N.I.Skvortsova, V.G.Artemenko, M.V.Bellender, G.P.Ivanov. At macro level to them cab ne reffered: imperfection of financial, monetary, credit, tax systems, standard and legislative base of reforming of economy, a high rate of inflation. That is the reasons connected with management of national economy. Absence of accurate legislative base of bankruptcy, a sufficient readiness of administrative and the criminal liability for bankruptcy, effective control body of bankruptcy both at state level, and in the regions, legislatively fixed necessity of carrying out of the analysis and absence of the developed techniques of its carrying out also are the reasons of occurrence of bankruptcy. That is the reasons connected with management of the institute of bankruptcy.

Allocation of the cultural-ethical reasons is caused by that at the present stage of development of market relations in the countries with transitive economy «… Non-observance of business obligations is considered to be a commonplace»

The casual reasons – the reasons which have caused insolvency of the debtor not on his own fault, but due to unforeseen circumstances, for example, act of nature, an inconsistency of his debtor.

The criminal reasons are directly connected with an ethical aspect of participants of economic relations and return of credits and their assignment, and also assignment of money of investors for what for the purpose of responsibility avoidance the mechanism of bankruptcy as the tool for enterprise closing, that is in desire of a part of the heads of the enterprises of reception of a profit . For example, to close the enterprise it is necessary to book audit, to pay the state duty, to pass closing procedures in tax inspection and executive committee that demands considerable financial expenses and time. At the same time, to close the enterprise for bankruptcy procedure, it is necessary to pay small money of the State tax and to give an announcement to the newspaper and all that releases from efforts, a considerable part of financial expenses, and in the presence of the creditor-applicant – and from necessity to book audit.

We keep considering the other types of bankruptcy and now go to:

By the persons who have created a situation of bankruptcy. Such persons can be: a) the debtor; b) business partners and c) the third parties.

So, the reasons of occurrence of bankruptcy – can be the actions of the debtor , action of partners, delays in calculations, bankruptcy of the partner, and also inconsistency of decisions.

In the next article we shall continue speaking about the types of bankruptcy in Ukraine.

Almost all of us still remember the times when it was possible to buy something even if one had not enough funds. Credit was a simple way out. It is not surprising that today many of those who applied for a credit, are looking around for how to avoid bankruptcy.

People who happened to get into the situation when they owe more money than they have, definitely have to look for ways to avoid bankruptcy.

Being in such condition it is wise to use any tools to get over it. Use such unique opportunity as the web technologies. Using them at full capacity can give great results. Making use of search engines, forums, social networks,web sites one can discover lots of tips to avoid bankruptcy and a great deal of other respective info. Also signing up for RSS on this blog will assist to keep track of new publications and tips on the topic.

Occurrence of a condition of bankruptcy of the subject of managing can be caused by a number of the reasons which accounting is very important when managing the realization by such subject, especially at a stage of arbitration case when the further destiny of the debtor is under consideration – the appointment liquidating or sanation procedures.

In the standard understanding «the reason – is the phenomenon causing, the occurrence of other phenomenon», in a concrete case – bankruptcy.

Monitoring of the economic literature has shown that cause – effect dependence of occurrence of bankruptcy of managing subjects has an insufficient scientific readiness so, represents problem area when managing of such subjects. Absence of the accurate and scientifically well-founded classification of the reasons of occurrence of bankruptcy interferes with their tracing, accumulation and elimination that does not promote the decrease in number of considered cases about bankruptcy in Ukraine, to overcoming of crisis of payments and stabilization of economy of regions and the country as a whole.

So, in the most part studied by us literature sources , the reason of bankruptcy as they are not considered at all. By economists were studied: the solvency factors, negative impact of which, according to authors (A.V.Fedotov, G.V.Slabikov, A.S.Sokolitsina), also leads to bankruptcy; factors of occurrence of crisis situations and bankruptcy (G.P.Ivanov, Of this year Beljaev, A.I.Semanihin, G.G.Borisov, B.L.mezhirov) or the reasons are not considered at all (J.M.Chebotar, A.D.Sheremet, R.S.Sajfulin, V.P.Astakhov).

However it is necessary to notice that there are many reasons on which particularly taken enterprise can become the bankrupt. Therefore, as show the researches, there is no necessity to try to list all possible reasons, and it is hardly possible. It is enough to specify the directions of their occurrence, having united the reasons in separate groups and subgroups for the purpose of the further cataloguing for construction of techniques of revealing, elimination or influence on them. It will give the chance to define the share importance of the reasons and to concentrate on elimination or easing of influence of those of them which have the big importance or frequency of display in occurrence of bankruptcy of subjects by entering of offers at the state level, and rendering of the consulting help to the enterprises, wishing to keep their activity.

Thus, in process of managing the bankruptcy there will be a possibility to catalogue and accumulate in time and the reasons, and methods of their elimination. It should be promoted by presence of scientifically well-founded classification.

In the form of occurrence of the reason it is necessary to subdivide on: a)external and b)internal. External – don’t depend on the enterprises activity, those are the reasons creating the conditions of managing, and internal – the reasons concerning directly to managing of the subject.

In classical market economy as foreign researchers mark, 1/3 faults for bankruptcy of the enterprise fall on external factors and 2/3 – on internal.

Practically all of us still remember the times when one could easily buy something even if one hadn’t got enough money. Credit was a simple way out. It is little wonder that today many of those who hunted for a loan, are looking around for how to avoid bankruptcy.

People who managed to get into the condition when their expenses exceed their earnings, definitely should search for ways to avoid bankruptcy.

If facing such difficulties it is wise to use any means to get over it. Take advantage of such great opportunity as the online technologies. Using them at full capacity could give great results. Making use of search engines, forums, social networks,web sites one will discover lots of tips to avoid bankruptcy and a great deal of other respective info. Also signing up for RSS feed on this blog will help to keep abreast of new publications and tips on the topic.

Every year there are a lot of people that file for bankruptcy. But even if though it never occurred you mind before, it’s better for you to make some steps to avoid bankruptcy furthermore.

What is the reason to avoid bankruptcy? If one day you will state bankruptcy, it will stay in your credit record for the ten years period. It can bring to the situation that when you will need to get some credit banks will think that you are at the high risk group and may not give you that credit or ask for higher interest rate. Also it can happen that you will not be given the full amount of credit you that you asked for because of your credit story.

And believe us that it’s not going to be the only problem concerning your credit history, don’t forget that nowadays mostly employers prefer to look through this kind of history before hiring someone. Especially in the case if this job concerns working with finances in some way. A good and clean credit story can play as an advantage and it has a positive effect from every side.

And besides, don’t forget that fact that there exist some kinds of debts that will not be discharged by bank in any case. This can be payments connected with student loan, tax lien or child support. It is obligatory that you still will be responsible for those kinds of payments even though your other debt obligations were relieved. Sometimes people are too naive thinking that bankruptcy will delete all existing debt payments, but surely it will not! And also there is an emotional price for bankruptcy to be mentioned. Feeling of pressure, depression and total crash are usually related with the word bankruptcy.

However there can be some events when bankruptcy is the best way out, but no matter what, try to use all other ways and options before. You should ask yourself the question, why did you get into trouble with your finances? Is the reason of causing this your job loss, illness or maybe the habit of spending too much? Think over, take a piece of paper and try to create the plan of your future budget, where you will put all your income and spending. This will help you to find out from where you can save some money for paying your debts out. Planning and guiding by your budget is one of the most helpful resorts to avoid bankruptcy.

Also there exist some other ways. For example, you can contact your lender and try to come into agreement with him, or you can contact a debt counseling service.

Even if it seems to you that the bankruptcy is the best decision, always try to use all the other possibilities.

Almost all of us remember the times when one could easily buy something even if one hadn’t got enough money. Loan was a simple way out. No wonder that today many of those who applied for a credit, are looking around for how to avoid bankruptcy.

People who managed to get into the condition when they owe more money than they have, definitely should look for ways to avoid bankruptcy.

If facing such difficulties it is wise to use any means to get over it. Use such unique opportunity as the Internet technologies. Using them at full capacity could give great results. Working with search engines, forums, social networks,web sites one can discover a number of tips to avoid bankruptcy and a great deal of other respective info. Also subscribing to RSS feed on this blog will help to be aware of new publications and tips on the topic.