Bankruptcy in Romania
Corporate lawyer in Romania. What is bankruptcy in Romania?
According to the provisions contained in the Romanian Insolvency Law No. 85/2014, insolvency is the state of a company in Romania‘s patrimony characterized by insufficient cash funds available for the payment of certain, liquid, and due debts. According to the same provisions, the debtor who is in a state of insolvency is obliged to address the tribunal with a request for opening the insolvency procedure in Romania.
Thus, after following all the steps that arise from opening the insolvency procedure in Romania, the debtor may follow either successively or separately, the judicial reorganization in Romania and/or the bankruptcy procedure in Romania of a company in Romania, this being the general insolvency procedure in Romania. On the other hand, the simplified procedure in Romania involves the direct entry of the debtor who owns a company in Romania into the bankruptcy procedure in Romania, without undergoing a judicial reorganization in Romania.
Bankruptcy in Romania is the final stage that intervenes for a company in Romania in insolvency in order to liquidate the debtor’s assets to cover the liabilities and remove the company in Romania from the register in which it was established, either by the legal representative or with the help of a corporate lawyer in Romania or a bankruptcy lawyer in Romania.
Bankruptcy for a company in Romania is also a method of the collective and egalitarian insolvency procedure in Romania, considering that the debtor’s patrimonial assets are valued to satisfy the claims of multiple creditors.
Bankruptcy lawyer in Romania. What are the conditions for bankruptcy procedure in Romania?
The opening of the bankruptcy procedure in Romania is realized by analyzing the request for opening the bankruptcy procedure in Romania filed by the debtor or by one of the creditors. The request must include all identification details of the creditors and the debtor, all information regarding claims or other relevant data for the bankruptcy procedure in Romania.
According to the regulations in the Romanian Insolvency Law No. 85/2014, bankruptcy in Romania is based on the judgment or conclusion given by the syndic judge when the debtor, company in Romania, has expressed the intention to enter directly into the simplified procedure in Romania, when it has not declared its intention of judicial reorganization in Romania, or when none of the interested parties proposes a reorganization plan, or in situations where, although a plan was proposed, it is not accepted and confirmed so that it can produce its effects. But these are not the only situations that can lead to the declaration of bankruptcy in Romania, as the failure to fulfill obligations assumed through the reorganization plan or performing activities that could affect the available assets or the simple approval of the judicial administrator’s report proposing entry into the bankruptcy procedure in Romania are also among the causes that lead to the opening of the bankruptcy procedure in Romania.
One of the direct effects determined by the opening of the bankruptcy procedure in Romania is the dissolution of the debtor company in Romania, but also the lifting of the right of administration held by a company in Romania that is the debtor, with the judicial liquidator to conduct the operations regarding the bankruptcy in Romania of a company in Romania whose economic activity in Romania is interrupted.
Considering the complexity of the insolvency procedure in Romania or bankruptcy procedure in Romania, consulting a corporate lawyer in Romania is an essential step for streamlining the entire process. They can provide legal services such as: evaluating the company’s financial situation, advising on the optimal strategy for approaching insolvency or bankruptcy proceedings, preparing and filing necessary documentation, representing the company in court and before creditors, negotiating restructuring or liquidation plans, and monitoring compliance with legal obligations throughout the procedure. The judicial liquidator has an essential role in the bankruptcy procedure in Romania since they have the obligation to inventory the assets so that they can later be evaluated and valued to pay off debts. However, this stage can only be realized based on a plan voted by the creditors’ meeting. Regarding the simplified procedure in Romania, the court also orders and confirms the judicial administrator as the judicial liquidator.
Insolvency lawyer in Romania. Notification of interested parties
Within the bankruptcy procedure in Romania, the judicial administrator has the obligation to draft and submit to the liquidator, within a maximum of 10 days from the opening the insolvency procedure in Romania, a list with the names, addresses, and claims owed to creditors at the date of entering bankruptcy in Romania and specifying the claims arising after the date of entering bankruptcy in Romania.
The task of notifying the entry of the debtor into the bankruptcy procedure in Romania falls to the liquidator, who will inform the debtor, the creditors, and the register where a company in Romania is registered through a notification about the opening of the bankruptcy procedure in Romania.
A bankruptcy lawyer in Romania or an insolvency lawyer in Romania can guide you throughout the procedure, from the moment you face a company in Romania in insolvency until its removal from the trade register.
The Romanian Law Firm Pavel, Margarit and Associates provides legal advice and legal assistance services in the insolvency procedure, especially regarding assistance in bankruptcy procedure in Romania. An insolvency lawyer in Romania can support you in the bankruptcy procedure in Romania having great experience in the field. In order to benefit from our professional support and for bankruptcy 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.
Lawyer for insolvency procedure in Romania. Liquidation of debtor’s assets
The liquidation of assets from the debtor’s estate is carried out by the liquidator under the supervision of the syndic judge after drawing up the list of assets that can be subject to enforcement, sealing, and inventorying them. All procedures regarding the liquidation of assets obtained by the debtor from economic activity in Romania, their exposure on the market, or their sale are borne by the debtor’s estate, and the method of sale (public auction or direct negotiation) is to be determined by the general meeting of creditors at the proposal of the liquidator and the creditors’ committee.
Consulting a bankruptcy lawyer in Romania or an insolvency lawyer in Romania is a recommended option considering that the procedures involving the opening the insolvency procedure in Romania or any other operations arising from the insolvency procedure in Romania are lengthy and require certain legal knowledge for their proper conduct.
Following the liquidation of the debtor’s estate, the distribution of the amounts is carried out. At this stage, the liquidator draws up a report on the liquidation operations that took place and a plan for distributing the amounts obtained among creditors. Priority is given to paying the procedure-related taxes and expenses for preserving the assets from the debtor’s estate, followed by claims arising from employment relationships, credits, interest, budgetary claims, maintenance obligations owed by the debtor to third parties, or other unsecured claims.
The Romanian Insolvency Law No. 85/2014 also specifies that after the liquidation of the assets, the liquidator presents a final report on the financial balance to the syndic judge, who will convene the general meeting of creditors within a maximum of 30 days from its posting. Creditors have the right to file objections to this report at least 5 days before the date of the meeting, and these will be resolved at the meeting, when the syndic judge approves the liquidator’s final report on the distribution of all assets from the debtor’s estate. Therefore, for a company in Romania whose economic activity in Romania is suspended from the opening the insolvency procedure in Romania, the Romanian law firm Pavel, Mărgărit and Associates recommends collaboration with a corporate lawyer in Romania who possesses the necessary knowledge to conduct the entire process legally, as well as extensive expertise in the field of insolvency.
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