Creditors manage to recover only 11,9% of the debt
Statistics on corporate bankruptcy from the Federal Resource site in the past year show that on average, creditors manage to recover only 11,9% of the total debt during the process of bankruptcy of private companies with debts.
The reason for such low recovery rates is that in most cases, the debtor attempts to write off the debts and minimise the negative consequences of bankruptcy by any means possible. Often, these methods result in direct losses for creditors.
21,6% — secured creditors;
2,3% — ordinary creditors.
If creditors do not take active measures to protect their interests, the likelihood of debt recovery in such cases tends towards zero.
Sale of company assets and asset withdrawal
Re-registration of the legal entity in a nominee
Attempts to influence the decisions of the bankruptcy trustee
Ignoring the demands of creditors, tax authorities, and lawyers
Manipulation of documents, concealment of information or data
Attempting to evade responsibility by initiating personal bankruptcy
Bankruptcy “tourism” — changing jurisdiction before bankruptcy