LAW OF TURKMENISTAN

of October 1, 1993 No. 861-XII

About bankruptcy

This Law determines conditions and procedure for the announcement of the subjects who are engaged in business and other economic activity, bankrupts and regulates their property status.

The law guarantees providing the rights and interests of creditors and the debtor, creates the legal basis for involuntary or voluntary liquidation of the companies of insolvent subjects of managing if holding actions for their sanitation by acknowledged economically inexpedient.

Section I. General provisions

Article 1. Concept and signs of bankruptcy

Bankruptcy is understood as steady inability of the debtor to satisfy in time, established by this Law, requirements of creditors and to fulfill obligations to the budget.

Sign of bankruptcy is the suspension of the current payments connected with excess of obligations of the debtor over its property (liabilities over assets).

Bankruptcy is considered taking place after the voluntary announcement of the debtor of the bankruptcy or recognitions of the fact of insolvency by its economic court.

Article 2. Poor debtors, subjects of bankruptcy, creditors

Poor debtors are physical persons and legal entities, irrespective of patterns of ownership, performing business or other activity and not providing accomplishment of the debt obligations before creditors and the budget owing to lack of means of payment.

Subjects of bankruptcy (bankrupts) are the poor debtors recognized in accordance with the established procedure as economic court or voluntarily recognized themselves as those.

Creditors are the physical persons or legal entities having property claims to the debtor.

Article 3. Assets and liabilities of the debtor

The property of the debtor consists of non-current and current assets.

Liabilities of the debtor consist of equities, long-term and short-term obligations.

Article 4. Property responsibility of the debtor

The debtor bears complete property responsibility according to the obligations to creditors and the budget.

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info