The insolvency procedure in Romania can be initiated as a result of a request filed to the Court by a debtor in Romania, one or more creditors in Romania, or by individuals or institutions expressly provided by law. According to the regulations of Law No. 85/2014, any creditor in Romania entitled to request the initiation of the insolvency procedure in Romania can submit a request to open the insolvency procedure against a debtor in Romania presumed to be insolvent. In this request, they will specify details that a lawyer specialized in litigation insolvency and bankruptcy in Romania from The Romanian Law Firm Pavel Mărgărit and Associates team can identify in order to complete all the conditions for initiating the insolvency procedure in Romania.
In case of a request to open the insolvency procedure in Romania and liquidation Romania made by the insolvency creditors in Romania, the insolvency judge may, at the request of the debtor in Romania, order the creditor to deposit a guarantee at bank. Furthermore, within 10 days of receiving the request to open the insolvency procedure in Romania, the debtor must either contest or acknowledge the existence of the insolvency of company in Romania. Since only documentary evidence can be presented during the hearing of the objection, The Romanian Law Firm Pavel Mărgărit and Associates recommends contacting lawyer specialized in litigation insolvency and bankruptcy in Romaniawho can provide legal assistance in proper preparation of the documentation for opening the insolvency procedure at the request of the creditor in Romania and representation before the Romanian judicial Courts.
Furthermore, the insolvency judge will make a decision based on each specific situation. Therefore, if the judge determines that the debtor in Romania is not insolvent, they will reject the creditor’s request, which will be considered as having no effect. If the insolvency creditors claim in Romania, who requested the opening of the insolvency procedure in Romania, is paid before the conclusion of the procedure of insolvency of company in Romania, the insolvency judge will dismiss the request. Last but not least, if the debtor does not pay the insolvency creditors claim in Romania by the end of the proceedings, and the insolvency judge establishes the insolvency of comapny in Romania, they will grant the request to open the insolvency procedure in Romania and will initiate the general insolvency procedure or the simplified procedure, as applicable.
“Proper knowledge of the law and legal assistance provided by a specialized lawyer in insolvency and bankruptcy in Romania can be the decisive factor for success in the debt recovery process in Romania,” acknowledges Managing Partner of Romanian Law Firm Pavel Margarit and Associates, Radu Pavel.
Pavel, Margarit and Associates Law Firm has represented both creditors and debtors in insolvency procedure over the years, with a lot of experience in the field. It is recognized as the third-ranked law firm in Romania in the Insolvency and Restructuring practice area by the international director of Legal 500 in London.
From the date of the opening of the insolvency procedure in Romania, all judicial and extrajudicial actions, as well as enforcement measures for the collection of claims against the assets of the debtor in Romania, are automatically suspended. The realization of their rights can only be carried out within the framework of the insolvency procedure in Romania, by submitting a request to be added to the list of creditors. For this reason, a lawyer specialized in litigation insolvency and bankruptcy in Romania from The Romanian Law Firm Pavel Mărgărit and Associates team can provide legal assistance to creditors in Romania in the insolvency procedure in Romania to ensure the realization and recovery of their claims.
Pavel, Margarit and Associates Law Firm is one of the top law firms in Romania, providing high-quality legal services. The firm’s clients include multinational and domestic companies of great magnitude. In 2023, the law firm’s success stories brought it international recognition from the most prestigious international guides and publications in the field. As a result, Pavel, Margarit and Associates Law Firm ranked 3rd in Romania in the Legal 500’s ranking of business law firms with the most relevant expertise. The law firm is internationally recognized by the IFLR 1000 Financial and Corporate 2023 guide. Additionally, Pavel, Margarit and Associates Law Firm is the only law firm in Romania recommended by the international director of Global Law Experts in London in the Dispute Resolution practice area. All relevant information about Pavel, Margarit and Associates Law Firm can be found on the website www.avocatpavel.com.
The application for the opening of insolvency proceedings in Romania must be brought in court and include issues relevant to the opening of the procedure, with the possibility of involving a lawyer specializing in insolvency and bankruptcy disputes in order to draw up appropriate documentation.
The syndic judge may order the recording of a security at the bank at the request of the debtor, and within 10 days from the receipt of the request, he must challenge or acknowledge the insolvency of the legal person in Romania.
If the creditor’s claim is paid by the close of the proceedings , the insolvency proceedings will be dismissed as devoid of purpose.