Bankruptcy represents a court case over the debtor's assets due to inability to pay and overindebtedness. The bankruptcy proceeding is carried out by a court, a bankruptcy trustee, a creditor assembly, and a creditor committee. The bankruptcy proceedings are initiated by submitting a proposal for the opening of bankruptcy proceedings, and the motion for opening a bankruptcy proceeding is authorized to be filed by a creditor or a debtor. Accounting for a bankruptcy company is no different from accounting in regular business. Tax regulations impose certain obligations on a bankruptcy company, but they do not significantly differ from the obligations the company had before the bankruptcy proceeding. Pursuant to the Law on Insurance of Worker Claims on the Right of Workers in a Bankruptcy Procedure are provided and partially paid out from the funds of the Agency for Insurance of Worker's Claims. Settling down creditors in a bankruptcy proceeding is done by cash inflow. The bankruptcy trustee creates a split list that must be approved by the creditor or court board. The main purpose of bankruptcy is to settle the company's obligations towards creditors.