The court must make an order on the closure of bankruptcy, if the funds of the bankruptcy estate are insufficient for the costs of the bankruptcy proceedings, or if the disbursement to the creditors would in any case be insignificant. The order on the closure of bankruptcy is usually made within two to six months of the beginning of bankruptcy.
At the closure of bankruptcy, the duties of the administrator and the other legal effects of bankruptcy cease. A limited liability company debtor is removed from the trade register.
If assets remain in the closed bankruptcy estate, they are submitted to the execution authorities, who will distribute them to the creditors.
A bankruptcy with insufficient means, which would otherwise be closed due to the lack of assets, may be continued under public receivership. The prerequisite is that the pre-bankruptcy operations of the debtor, or the activities of the bankruptcy estate, require scrutiny, or some other special reason.
The Bankruptcy Ombudsman files the request for transfer to public receivership, and the order is made by the court. Public receivership means that bankruptcy proceedings are continued under the financial responsibility and the supervision of the Bankruptcy Ombudsman. The public receiver acting as the administrator submits a report and the final settlement of accounts to the Bankruptcy Ombudsman.