Insolvency law deals with financial operations of legal persons, insolvency proceedings against natural and legal persons, and compulsory dissolution proceedings of legal entities.
Insolvency is the situation where the debtor is not able to settle all of his/her liabilities within an extended period of time (continuous insolvency) or if he/she becomes insolvent (over indebted). In this case insolvency proceedings are carried out against the debtor:
- compulsory settlement proceedings
- simplified compulsory settlement proceedings
- bankruptcy proceedings against a legal entity
- personal bankruptcy
- bankruptcy of succession
If a debtor winds up in insolvency proceedings, it is on the creditor to take appropriate measures in order not to lose the ability to exercise his rights. It is essential for the creditor to file a notification of his claims, which arose prior to the date of initiation of insolvency proceedings. This is particularly important in the case of bankruptcy proceedings, where failing to meet the time limit for notifying the claim results in termination of the claim in relation to the debtor in bankruptcy. If the creditor’s claim is secured by a separation right, the creditor has to notify his separation right within the time limit as well. Whenever the creditor is the owner of movable property, which is in possession of the debtor, or when a creditor acquires by prescription or in any other original way, the ownership to immovable property owned by the insolvent debtor, and in some other statutory cases, the creditor also has to notify his exclusion right on that property. In other words, by notifying his exclusion right to the administrator, the creditor requests for such property to be excluded from the bankruptcy estate, as it belongs to the creditor.
Apart from filing the claim itself, it is important for the creditor to continue monitoring the bankruptcy procedure, as the situation may arise later in the proceedings when the creditor will have to act to protect his rights. A creditor may enter an objection to the basic list of verified claims if one on the claims filed in due time is missing from the list or if data on such a claim is not correct. Furthermore, the creditor may contest the claim of another creditor. He may also exercise several legal means against court decisions and participate in the creditors’ committee. Lastly, the creditor may file a complaint in due time if the bankruptcy receiver contests the filed claim.
If a client entrusts our office to file their claim, our team will continue to monitor the insolvency procedure after filing the claim in order to ensure that our client’s rights are asserted in a correct and timely manner.
Our legal services in the field of Insolvency law include:
- filing claims, notifications of separation and exclusion rights;
- monitoring information published on the AJPES portal;
- filing legal remedies when necessary;
- filing objections against other creditors’ claims;
- bringing action in case of contested claims;
- representation in proceedings to set aside acts of the insolvent debtor;
- representation in creditor’s committee;
- legal consultancy on various aspects of insolvency proceedings.