The bankruptcy of a company is one of the most common reasons for a termination of a company, bearing in mind that bankruptcy does not necessarily lead to, but most often leads to the termination of the company. In the Republic of Croatia, bankruptcy proceedings are legally regulated by the Bankruptcy Law regulating the conditions for bankruptcy proceedings, bankruptcy proceedings, the position of creditors in the proceedings, legal consequences of the opening and execution of bankruptcy proceedings, bankruptcy plan and other. The bankruptcy proceeding aims to settle creditors of the bankruptcy debtor by cashing up his assets and dividing the incomes to the creditors in proportion to the order and magnitude of their claims in the order set out in the Bankruptcy Law. Reasons for opening a bankruptcy are the inability to pay or overdue, and the company ceases to exist upon termination of bankruptcy proceedings. Bankruptcy proceedings occur daily in the Croatian economy due to the inability of companies to adapt their business to uncertain market conditions and strong competition on the market. This paper aims to bring a closer insight in bankruptcy procedures in the Republic of Croatia and particularly the bankruptcy proceedings of the company "Bila boja Ltd."