CASE STUDY
Bankruptcy of a sole proprietor after a pandemic-era loan
During the pandemic a sole proprietor took a subsidised loan to keep his business running and pay staff, but falling income made it unserviceable. Acting within the law, he went through bankruptcy: the court declared him insolvent and opened asset realisation.
- Category
- Personal bankruptcy
- Period
- 2020
- Key figure
- 6 months — the realisation procedure opened by the court
Handled by lawyers of Kovalev & Partners LLC — the bar association’s partner law firm
The task
In the economically difficult pandemic period a sole proprietor took a special-terms loan to support his business and pay wages. A dramatic fall in income left him unable to keep up the payments.
What we did
Acting within the law and intending to declare himself bankrupt, he sought legal help. After an analysis of his documents, a bankruptcy petition was prepared and filed with the Commercial Court of Moscow.
The outcome
The court found the statutory signs of insolvency, declared the sole proprietor bankrupt and opened a six-month asset-realisation procedure (case No. А40-176655/2020).
The result in one case neither guarantees nor implies a similar result in another. Bankruptcy is declared by the commercial court.
NEXT STEP
Tell us about your matter
We reply within one business day. The consultation is free of charge when an agreement is signed.