Federal Government educative Budgetary Establishment of the higher

Professional Education

“ Financial university under the government of the Russian Federation”

Faculty “ International Finance “

Essay on Microeconomics

“Bankruptcy: theory and practice “

Made by student of the group IFF 1-3 Belolipetskaya Anastasia

Tutor: PhD Victor Slobodyannik

Content.

Introduction …………………………………………………………………………………………………….3-4

Chapter 1: theoretical essence of the bankruptcy............................………………….5-19

1.1 The problems of bankruptcy: theoretic approaches.........................................5-6

1.2 Concepts and features of the insolvency of the legal entity. Conditions, criteria and reasons for bankruptcy........................................................................6-8

1.3 Types of bankruptcy......................................................................................8-12

1.4 Characteristics of the depth of the status bankruptcy...................................12-14

1.5 Bankruptcy procedures and conditions of application.................................14-19

Chapter 2: the bankruptcy in practice, development and Russian main features, trends ....................................................................................................20-30

2.1 The history of development of the institution of insolvency (bankruptcy) in Russia.................................................................................................................20-23

2.2 Russian legislation on insolvency (bankruptcy) the main features and trends..................................................................................................................23-25

2.3 Article...........................................................................................................25-26

2.4 Falsification of financial statements, Firms-failures.......................... .........27-28

2.5 How to prevent bankruptcy..........................................................................28-30

Conclusion............................................................................................31-33

Literature...............................................................................................34-35

Introduction.

Socio-economic situation in Russia as a result of economic reforms is characterized by decline in production in many industries, impoverishment of certain parts of the population, the loss of certain ideals, a violation of the moral foundations of society. It would seem that the course on reforms, and the economy remains unstable. The reason for that - there are many of normative legal acts which are not provided an effective mechanism of implementation.

The stability of the economy - is first of all the normal functioning of economic entities, and their ability to react quickly and flexibly to the changing of market infrastructure. Any, even the most seemingly stable enterprise is at risk to bankruptcy, not to mention the individual entrepreneurs who operate at their own risk. What to do if a business owner because of any reasons has become insolvent? What to do its creditors? The desire of participants of market relations themselves without outside intervention to smooth out a situation where it is impossible to carry out settlements, often ends imaginable and unimaginable cruelty and perversity of mob justice creditors of insolvent debtors, as well as inadequate as the last attempt to get rid of the annoying creditors.

If in ancient times, the bankruptcy law was of a punitive nature of the defamatory character and that allowed a creditor of the insolvent debtor to cut off some part of the body, it is now possible insolvency laws aimed specifically at solving the conflict. With time came the realization of the fact that the creditor, the debtor has killed, cut off his body it is not become better , unreturned debt does not stopped be. Gradually, a qualitative change in the legislation establishing their own by transferring the emphasis on asset backed debt and its real return in kind.

The entrepreneur, having lost the sold-out to pay off debts of the property, but has retained a life and health could, taught by our own mistakes to start all over again -to establish a new entrepreneurial business. Thus, the bankruptcy is necessary, above all, for the recovery of the market, as are excluded from civil circulation insolvent entities (in case of liquidation), as well as the institution makes it possible to current a responsible business entities (citizens and legal entities of different ownership forms) reorganize their business and again to achieve financial stability.

I selected the theme "bankruptcy" because it is most actual at the present time, although in pre-revolutionary Russia had accumulated huge experience for resolving this category of cases, the legislation could be called a new step in the development of the institution of bankruptcy, as in Soviet citizens had no right to engage in independent economic activity, therefore, the question of the bankruptcy of an individual entrepreneur or organisation does not arise.

In my course work I have made the analysis of the history of bankruptcy in Russia, its origins and types, researching for possible ways to avoid the bankruptcy of firms, financial recovery.

Chapter 1: theoretical essence of the bankruptcy.