Dismissal of the bankruptcy petition

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Bankruptcy petition dismissed - in what circumstances?

The bankruptcy petition will be rejected if:

  • the remaining assets are insufficient to meet the costs of the proceedings,
  • if the assets of the insolvent debtor are insufficient to cover the costs of the proceedings,
  • if the property is encumbered with a mortgage, lien, registered or fiscal pledge, or a maritime mortgage, if such encumbrances make the property insufficient to cover the costs of the proceedings,
  • if the delay in performance of obligations does not exceed three months, and the sum of unpaid obligations (i.e. the value of unpaid liabilities) does not exceed 10% of the balance sheet value of the debtor's enterprise (the calculation is made taking into account the accounting regulations, according to which the balance sheet value - enterprise assets - maturing liabilities of the enterprise).

However, the above grounds for dismissing the petition for bankruptcy will not be taken into account by the court if it is proved that the debtor's assets are ineffective in accordance with the provisions of the Act, and also if they were made with the intention to harm creditors, also if it is proved that the debtor has performed other legal acts ineffective, which have disposed of property sufficient to cover the costs of the proceedings.