In this paper, the greatest attention is paid to the bankruptcy and liquidation of one group of companies, namely limited liability companies. It is often the case that companies in the Republic of Croatia encounter the concept of bankruptcy and its consequences, because it is a daily part of business life. Efficiency and effectiveness in resolving bankruptcy proceedings are are the key to functionality of our country economy. In the case of liquidation, the situation is somewhat different. The company is liquidated, but the reasons are not the same as for bankruptcy. The reasons for bankruptcy can be over indebtedness or inability to pay, while the reason for liquidation can only be the expiration of the time for which the company was founded, the death of a member of the company, etc. When it comes to bankruptcy, the main problem we encounter is the lack of a law that regulates the postponement of the opening of bankruptcy proceedings, therefore, the debtor is unmotivated to start the procedure, because no one will sanction him for delay. Bankruptcy proceedings are the responsibility of the court, the bankruptcy trustee, the committee of creditors and the group of creditors, and the regulation of the entire bankruptcy process is the responsibility of the Bankruptcy Act and the Companies Act.