Completion of bankruptcy

Bankruptcy ends when the realisation of assets has been completed, a final report has been submitted, and the resolution cancelling the bankruptcy becomes final.

When the realisation of the estate has come to an end, the insolvency practitioner submits a final report to the insolvency court. The final report must generally describe the activities carried out by the insolvency practitioner and quantify the financial results. The insolvency practitioner’s final report must lead to a quantification of the amount to be distributed among the creditors, the designation of those creditors, and an indication of the extent to which they are to share in this amount. Along with the final report, the insolvency practitioner submits the billing of their fee and expenses to the insolvency court.

The insolvency court reviews the insolvency practitioner’s final report and bill, and after a hearing with the insolvency practitioner corrects any errors and omissions therein. The insolvency court notifies the insolvency practitioner’s revised final report to the parties by publishing it in the form of a public notice. After the decision approving the final report becomes final, the insolvency practitioner submits a draft order on the distribution of the estate to the insolvency court, stating how much should be paid for each claim in the revised list of registered claims. The insolvency court then issues an order on the distribution of the estate, in which it determines the amounts to be paid to creditors. All creditors included in the distribution schedule are satisfied in proportion to the ascertained amount of their claim. In the distribution order, the insolvency court sets the insolvency practitioner a deadline for it to be fulfilled, which must not be more than two months from the date on which the distribution order becomes final.

Bankruptcy proceedings end with the delivery of the insolvency practitioner’s report on the fulfilment of the distribution order and the insolvency court’s decision to cancel the bankruptcy. The court also decides to cancel the bankruptcy in certain other cases prescribed by law, e.g. if it is found that the debtor’s assets are clearly insufficient to satisfy creditors’ claims. When the decision to bring the bankruptcy to an end becomes final, the insolvency proceedings are closed.

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