Bankruptcy is the insolvency of a debtor declared by a court order. A debtor who is a legal person is insolvent even if the debtor’s assets do not cover their obligations. Through bankruptcy proceedings, creditors’ claims are satisfied at the expense of the debtor’s assets pursuant to the procedure prescribed by law through the transfer of the debtor’s assets or the reorganisation of the debtor’s company. The assets of a bankrupt company consist of assets that the debtor had at the time of the declaration of the bankruptcy. There are also assets there that are reclaimed and/or recovered in bankruptcy proceedings.

We deal with all issues related to bankruptcy accounting, from the declaration of bankruptcy to the deletion of the company from the commercial register.

The added value of our work for the bankruptcy trustee in the current bankruptcy accounting service is that the bankruptcy estate is prepared in accordance with the Bankruptcy Act and, therefore, it is much easier for the bankruptcy trustee to report to the court.

Main bankruptcy accounting services:

  • receiving the accounting documents from the former management board;
  • organising the ongoing bankruptcy accounts on the basis of applicable law (including the Bankruptcy Act) or consulting a former accountant with regard to the accounting specifications of bankruptcy proceedings;
  • preparing accounts for the Estonian Unemployment Insurance Fund or consulting the former accountant of the company in the preparation of accounts and documents;
  • preparing bank transfers;
  • bankruptcy estate accounts;
  • special audits.

The reports prepared by us during the bankruptcy accounting service provide the necessary overview of the bankruptcy proceedings to both the trustee in bankruptcy and the members of the committee. The reports prepared make it easier to report to the court.

In order to determine whether the company had recovery transactions, a special audit of the bankrupt company is carried out. Sometimes trustees in bankruptcy are reluctant to order special audits in bankruptcy proceedings for fear of additional costs. They are also often unconvinced that this additional cost will bring a result. Practice has shown that the end result of our work has been effective for the bankruptcy proceedings, as a number of recovery transaction and debtors have been identified during the special audit, who are obligated to pay additional funds to the bankruptcy estate.

The special audit can also be effectively terminated if the debtor does not provide the trustee in bankruptcy with the correct accounting documents (e.g. they have destroyed them, provided false data, destroyed the accounting program, etc.).

The experience of Finantskonsultant includes special audits in the following companies during bankruptcy: Eesti Entsüklopeediakirjastuse AS (in bankruptcy), Ämalärd AS (former name Sõnajalg AS, in bankruptcy), Ookean RAS (in bankruptcy), AS Balti Mööbel Grupp (in bankruptcy), Intopex Chemicals AS (in bankruptcy), Haljala Ehitus AS (in bankruptcy), Eesti Sõltumatu Televisiooni AS (in bankruptcy), Tellisco AS (in bankruptcy), Kiviter RAS (in bankruptcy), etc.

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