of January 14, 2004 No. ZR-17
About insolvency (bankruptcy)
Accepted by National Assembly of the Republic of Armenia on December 17, 2003
1. The relations connected with insolvency (bankruptcy) are regulated by this Law, the Civil code and other laws of the Republic of Armenia.
2. The relations connected with hearing of cases about insolvency (bankruptcy) are regulated by the Code of civil procedure of the Republic of Armenia if this Law does not provide other.
1. This Law establishes the bases and procedure for recognition of the debtor by insolvent (bankrupt) or announcements the debtor of own insolvency (bankruptcy), the procedure of financial improvement and liquidation of the debtor recognized as insolvent (bankrupt), the rights and obligations of their participants.
2. Operation of this Law extends to legal entities and individual entrepreneurs.
3. The relations of banks and credit institutions in the field of insolvency (bankruptcy) are regulated by the Law of the Republic of Armenia "About bankruptcy of banks and credit institutions".
4. Features of production on insolvency (bankruptcy) of the insurance companies, subjects of natural monopoly and the subjects having dominant position in the market are established by other laws.
1. The debtor can be recognized as insolvent (bankrupt) (further - the bankrupt) only by a court decision if he is not capable to meet requirements of debtors in the presence of the signs provided by this Article.
2. In case proceedings on bankruptcy are initiated by the creditor (creditors), the debtor is recognized the bankrupt if he for 30 days or more spread execution of the payment obligations exceeding the five hundredfold size of the minimum wage established by the law and at the time of decision the specified signs take place.
3. In case proceedings on bankruptcy are initiated by the debtor, the debtor is recognized the bankrupt if at the time of decision he is not capable to fulfill the monetary commitment (obligations) or if the cost of its property is insufficient for satisfaction of requirements of creditors.
1. Cases on bankruptcy are considered in Economic court of the Republic of Armenia (further - Court) by the judges considering cases on bankruptcy (further - the judge).
2. Cases on bankruptcy, including after review and cancellation in cassation procedure for the decisions passed on them, are considered solely.
1. The debtor for the purpose of recognition of own bankruptcy shall take a legal action if:
a) the satisfaction of requirements of one or several creditors leads to impossibility of performance of monetary commitments in full before other creditors;
b) the supreme body of management of the debtor passed the decision on appeal to the court with the action for declaration about recognition of the debtor by the bankrupt.
2. The liquidation commission (liquidator) of the debtor legal entity shall file a lawsuit the action for declaration about recognition of the debtor by the bankrupt if in case of liquidation it is determined that the property value of the liquidated legal entity is insufficient for satisfaction of requirements of creditors in full.
3. In the cases provided by this Article, the action for declaration about recognition of the debtor by the bankrupt shall be filed a lawsuit not later than in ten-day time after identification of the corresponding bases.
1. The following relevant competent state bodies or local government bodies shall address to Court with the action for declaration about recognition of the debtor by the bankrupt according to monetary commitments concerning the budget of the Republic of Armenia and the local authority budget (including on taxes, duties, other obligatory payments):
a) bodies of the State Tax Service – in case of payment delay of taxes, duties or other obligatory payments – within 6 months after the term established for tax payment or from the moment of identification of such tax liability;
b) The state social pension fund – in case of payment delay of obligatory social payments – within 6 months after the term established for payment of obligatory social payment or from the moment of detection of such obligation on obligatory social payments;
c) the head of municipality - in case of obligation fulfillment delay on duties or obligatory payments, and also on other monetary claims of municipality – within 6 months after the term established for payment of these payments or from the moment of detection of such payment obligation;
d) other competent state bodies according to other monetary commitments – in case of delay of execution of these obligations – within 6 months after the term established for payment of these payments.
2. If during forced execution of the decision on the address of claim to property it became clear that in case of satisfaction of the requirement of the creditor (creditors) for one or several enforcement proceedings of service of forced execution of court resolutions execution on other enforcement proceedings of obligations concerning creditors owing to insufficiency of property is impossible, then the forced contractor shall take a legal action with the action for declaration about recognition of the debtor by the bankrupt irrespective of, there are all these enforcement proceedings at the same forced contractor or not.
3. In case of not submission of the action for declaration about bankruptcy in time, established by the state bodies specified in parts 1 and 2 of this Article it give bodies of prosecutor's office according to the procedure, established by the Law "About Prosecutor's Office" and other laws of the Republic of Armenia.
4. The state bodies and officials provided by this Article can refuse the claim only if owing to obligation fulfillment its size became less than the size provided by part 2 of article 3 of this Law.
1. In case of not giving by persons specified in article 5 of this Law, the action for declaration about composition in bankruptcy of the debtor in cases and term who are identified by the same Article, persons having obligation to submit the action for declaration, bear subsidiary responsibility to creditors according to the obligations of the debtor which arose after the expiration established by part 3 of article 5 of this Law. The same responsibility arises as well for the forced contractor in case of non-execution by article 6 of this Law of obligation established for it.
2. Competent officials of the state bodies and local government bodies specified in article 6 of this Law in case of not submission of the action for declaration about recognition of the debtor by the bankrupt in cases and the term which are provided by the same Article bear the personal property liability for caused thereof harm according to the Republic of Armenia and municipality.
1. If the debtor files a lawsuit the action for declaration about recognition of its bankruptcy, obviously having opportunity to meet requirements of creditors in full (dummy bankruptcy), then in case of variation the judge of the action for declaration the debtor bears liability for damages, caused to creditors owing to submission of the action for declaration.
2. In case of recognition of the debtor by the bankrupt because of persons owning authorized (share equity, share share) the capital, or the other persons having opportunity to instruct it obligatory for execution or to predetermine its decisions, including because of the debtor's head (to direct direct or indirect actions activities of the debtor, etc. (deliberate bankruptcy), founders (participants) of the debtor – the legal entity or other persons in case of insufficiency of property of the debtor bear subsidiary responsibility according to its obligations.
1. As interested persons concerning the debtor are considered:
a) the main, the legal entities, affiliated or dependent in relation to the debtor, identified by the legislation of the Republic of Armenia;
b) the debtor's head, and also the board members (supervisory board), members of collegiate executive body of the debtor, the chief accountant (accountant) of the debtor including exempted from the specified positions within the last one year at the time of submission of the action for declaration about recognition by the bankrupt;
c) person (persons) owning (owning) in at least 20 percent authorized (share equity, share share) the debtor's capital;
d) person or members of body having opportunity to instruct the debtor obligatory for execution or to predetermine its decisions.
The interested person concerning the debtor also person which is with persons specified in this Item, in the relations established by part 2 of this Article is considered.
2. Concerning physical person his spouse (spouse), persons who are with it in family relations on straight line to the ascending and descending lines, the brother, the sister and persons who are with them in family relations on the descending line, the brother, the sister of the spouse (spouse) are considered as interested persons.
3. In the cases provided by this Law, interested persons concerning the managing director and creditors are determined according to the procedure, established by parts 1 and 2 of this Article.
1. The suit for bankruptcy is brought by the creditor (creditors), the debtor or persons provided by part 2 of Article 5 and article 6 of this Law.
2. The judge adopts the action for declaration to production and considers case according to the procedure, established by the Code of civil procedure of the Republic of Armenia and this Law.
1. For the purpose of recognition of the debtor by the bankrupt the action for declaration to Court can be submitted:
a) the debtor for the purpose of recognition of own bankruptcy;
b) one creditor or jointly several creditors;
Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info
Search in text CTRL-F
If you are guest on our site, you will work in Demo mode. In Demo mode you can see only first page of each document.
With full access you can
Database include more 65000 documents. You can find needed documents using search system.
For effective work you can mix any on documents parameters: country, documents type, date range, teams or tags.
More about search system
If you cannot find the required document, or you do not know where to begin, go to Help section.
In this section, we’ve tried to describe in detail the features and capabilities of the system, as well as the most effective techniques for working with the database.
You also may open the section Frequently asked questions.
This section provides answers to questions set by users.
The document ceased to be valid since July 10, 2007 according to article 107 of the Law of the Republic of Armenia of January 22, 2007 No. ZR-51