Termination of a company's bankruptcy case

Unjustified initiation of bankruptcy proceedings violates the company’s interests, may damage its reputation, and can lead to additional legal consequences. Insolvency law grants creditors the right to apply to the court for the opening of bankruptcy proceedings, however, this right must be exercised in strict compliance with legal requirements.

A creditor may apply to the court only if the debtor has been duly notified in advance and granted a minimum period of 30 days to fulfil their obligations. If such notice has not been properly served, the initiation of bankruptcy proceedings may be considered unlawful.

Case law clearly establishes that bankruptcy proceedings cannot be used as a means of pressure on the debtor or as a tool for recovering a disputed debt. Such actions are treated as an abuse of procedural rights, and the court may impose financial penalties on the creditor.