Opening the insolvency procedure in Romania
Insolvency litigation lawyer. What does the insolvency procedure in Romania mean?
According to the regulations established by Law no. 85/2014, insolvency is that state of the debtor in Romania which is characterized by the insufficiency of available funds to pay certain, liquid, and due debts. According to the same provisions, the debtor in Romania who is in a state of insolvency is obliged to address the Court with a statement of claim in Romania for opening the insolvency procedure in Romania regulated by Law no. 85/2014 within a maximum of 30 days from the occurrence of the state of insolvency. Also, if the creditor’s claim in Romania is certain, liquid and due for more than 60 days, they are entitled to request the opening the insolvency procedure in Romania of a debtor in Romania.
The main purpose of the procedure of insolvency in Romania is to cover the debtor in Romania‘s liabilities while granting, when possible, a chance for efficient judicial reorganization in Romania.
An insolvency lawyer in Romania from The Romanian Law Firm Pavel Mărgărit and Associates is always available to assist you throughout the entire company insolvency process in Romania, from entering in insolvency procedure to the bankruptcy procedure of a company.
Bankruptcy lawyer. Parties
First, the party initiating the opening the insolvency procedure in Romania is called the debtor in Romania if they initiate the procedure themselves or, as the case may be, it can also be one of their insolvency creditors or the persons or institutions expressly provided by law. The bodies applying the insolvency procedure of companies are represented by judicial courts, the syndic judge, the judicial administrator and the liquidator. They have the role of ensuring the prompt performance of operations regarding the company insolvency process in Romania, as well as the realization of the rights and actions of the other parties involved in opening the insolvency procedure in Romania.
Law no. 85/2014 takes into account professionals and autonomous administrations, the rules contained therein not being applicable to persons exercising liberal professions, those subject to special provisions regarding opening the insolvency procedure in Romania, as well as pre-university and university educational units and institutions, and entities whose object of activity is scientific research and technological development.
The Romanian Law Firm Pavel Mărgărit and Associates invites you to use the services of an insolvency lawyer in Romania or a bankruptcy lawyer in Romania to determine which party is entitled to request a company insolvency process in Romania and how the provisions contained in Law no. 85/2014 regarding the procedure of insolvency in Romania will take effect.
Insolvency lawyer for a company. Insolvency of the legal entity and appointment of a judicial administrator
For an interested party to file a statement of claim in Romania for opening the insolvency procedure in Romania, it is important to meet several conditions, including the creditor’s claim in Romania amounting to a minimum of 40,000 lei or the observation period that a debtor in Romania must observe.
After meeting the necessary conditions for the insolvency procedure in Romania, the syndic judge pronounces a decision that will be published in the Insolvency Proceedings Bulletin. Summonses, notifications, convocations, and other procedural acts carried out by the courts or a judicial administrator after opening the insolvency procedure in Romania will also be published here.
After opening the insolvency procedure of companies, the law establishes an observation period under the supervision of a judicial administrator. A judicial administrator will be chosen from among the insolvency practitioners who have submitted a bid to take the position in the case file or at the proposal of the creditor or debtor in Romania. If there is no proposal from the latter and no insolvency practitioner has submitted a bid, then the syndic judge will temporarily appoint a judicial administrator chosen randomly from the List of the National Union of Insolvency Practitioners in Romania.
A bankruptcy lawyer or insolvency litigation lawyer in Romania can provide the necessary support to easily prepare the case file and ensure that all procedures comply with the provisions contained in Law no. 85/2014 regarding the procedure of insolvency in Romania.
Following this stage, insolvency creditors have the right to register their claims. To this end, they must submit a creditor’s claim in Romania within a period set by the judge. A judicial administrator or liquidator, as the case may be, verifies each creditor’s claim in Romania to determine its validity. To establish whether a creditor’s claim in Romania submitted meets the necessary conditions to be registered as valid, the judicial administrator is obliged to verify them within a maximum of 20 days for the general insolvency procedure in Romania, or 10 days for the simplified procedure.
After the observation period ends, the debtor in Romania may follow either, successively or separately, the judicial reorganization in Romania and/or the bankruptcy procedure, which is the general insolvency procedure in Romania.
However, the debtor in Romania may also choose the path of a simplified insolvency procedure in Romania, whereby if they meet the conditions stipulated in Law no. 85/2014, they enter directly into the bankruptcy procedure, either at the time of initiating the company insolvency process in Romania or after an observation period of up to 20 days, according to the law.
The Romanian Law Firm Pavel Mărgărit and Associates, through an insolvency lawyer in Romania or insolvency litigation lawyer in Romania, can help you with the necessary procedures for the insolvency procedure of companies.
The Romanian Law Firm Pavel, Margarit and Associates provides legal advice and legal assistance services in the insolvency procedure, especially regarding assistance in opening the insolvency procedure in Romania . An insolvency litigation lawyer can support you in opening the insolvency procedure in Romania of a debtor in Romania, having great experience in the field. In order to benefit from our professional support and for litigation lawyer advice, we invite you to fill in the contact form available on our website https://avocatpavel.com/contact/.
Don’t navigate these challenges alone. Contact Us today for expert assistance tailored to your needs.
Bankruptcy lawyer. Effects
It is important to mention that from the moment of opening the insolvency procedure in Romania all judicial or extrajudicial actions of the debtor in Romania are automatically suspended. Moreover, regarding the insolvency procedure of companies, sanctions may arise if the documents requested for the opening the insolvency procedure in Romania are not submitted by the debtor in Romania along with the statement of claim in Romania for opening the insolvency procedure in Romania. Thus, failure to submit documents such as the annual financial statement, the complete list of all the debtor in Romania‘s assets and the list of names and addresses of insolvency creditors will result in the rejection of the request for opening the insolvency procedure in Romania, as these are essential documents to initiate the procedure aimed at realizing the creditor’s claim in Romania.
A bankruptcy lawyer in Romania is essential for navigating the complex process of insolvency. The procedure for filing bankruptcy in Romania requires meticulous preparation and compliance with legal standards. A skilled bankruptcy lawyer in Romania can assist with the necessary documentation and ensure that all requirements are met. Given the intricacies of the procedure for filing bankruptcy in Romania, having an experienced bankruptcy lawyer in Romania by your side is crucial. Their expertise ensures that the procedure for filing bankruptcy in Romania is handled efficiently and effectively, providing the best chance for a successful outcome.
Sanctions may also occur if a brief description of the methods of judicial reorganization in Romania of the activity and some statements under own responsibility indicating whether the legal entity has previously been subject to the judicial reorganization in Romania procedure are not filed in the case file. Furthermore, the statement under own responsibility must also mention whether the administrators have been definitively convicted for committing certain offenses, which is penalized by the loss of the right to submit a reorganization plan.
Therefore, opening the insolvency procedure in Romania represents a complex legal operation, a decision made at a time of financial crisis that a company may go through during its existence. However, with efficient management, the legal entity can be rehabilitated, one of the essential aspects of this procedure being that it does not equate to the bankruptcy procedure of a company.
The Romanian Law Firm Pavel Mărgărit and Associates invites you to use the services of a lawyer for opening the insolvency procedure in Romania or an insolvency litigation lawyer in Romania to provide you with legal assistance at the highest professional standards. Our team of lawyers has extensive expertise in managing insolvency litigation for legal entities.
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