Unit 7. Bankruptcy

Basic Terms and Concepts

Vocabulary

Russian Term	English Term
банкротство	bankruptcy
банкрот	bankrupt
постановление суда о признании банкротства	bankruptcy order
заявление о признании должника банкротом	bankruptcy petition
подать заявление	to file a petition
несостоятельность	insolvency
внешний управляющий	external manager / administrator
конкурсный управляющий (управляющий конкурсной массой)	trustee / receiver
временный управляющий	interim manager
внешнее управление	external management / administration
осуществлять внешнее управление	to exercise external management
процедура банкротства	bankruptcy proceeding
признаки банкротства	indicia of bankruptcy
преднамеренное и фиктивное банкротство	deliberate and fraudulent bankruptcy
наблюдение	observation proceedings
финансовое оздоровление	financial rehabilitation
конкурсное производство	competitive proceedings
мировое соглашение	amicable agreement / settlement
работник суда по делам о несостоятельности	insolvency practitioner
поражение в правах	disabilities
постановление о восстановлении в правах	order of discharge

READING 1

1. Read and translate the following. Use the translation tips given below to translate properly the underlined fragments:

Bankruptcy is the state of a person who has been adjudged by a court to be insolvent. The court orders the compulsory administration of a bankrupt’s affairs so that his assets can be fairly distributed among his creditors. To declare a debtor to be a bankrupt a creditor or a debtor himself must make an application (known as a bankruptcy petition) either to the High Court or to a country court. If a creditor petitions, he must show that the debtor owes him at least $750 and that the debtor appears unable to pay it. The debtor’s inability to pay can be shown ether by: (1) the creditor making a formal demand in a special statutory form, and the debtor failing to pay within three weeks; or (2) the creditor of a judgement debtor being unsuccessful in enforcing payment of a judgement debt through the courts. If the petition is accepted the court makes a bankruptcy order. Within three weeks of the bankruptcy order, the debtor must usually submit a statement of affairs, which the creditors may inspect. This may be followed by a public examination of the debtor. After the bankruptcy order, the bankrupt’s property is placed in the hands of the official receiver. The official receiver must either call a creditors’ meeting to appoint a trustee in bankruptcy to manage the bankrupt’s affairs or he becomes trustee himself. The trustee must be qualified insolvency practitioner. He takes possession of the bankrupt’s property and subject to certain rules, distributes it among the creditors.

A bankrupt is subject to certain disabilities. Bankruptcy is terminated when the court makes an order of discharge but a bankrupt who has not previously been bankrupt within the preceding 15 years is automatically discharged after three years.