Debt recovery is still a legal matter of interest in the Romanian business environment, as many companies face financial difficulties or simply refuse to pay their debts. Tens of thousands of Romanian companies are still in insolvency, benefiting from Insolvency law protection when it comes to paying debts. With the help of a Romanian debt collection and litigation lawyer, the debt recovery procedure becomes easier for creditors, and the chances to successfully recover the debt increases, according to Pavel, Margarit & Associates Romanian Law Firm.
“The insolvency procedure, as regulated by Romanian Law 85/2014, is complex and presents a very tight timetable when it comes to appealing the table of receivables, the acts and reports issued by the insolvency practitioner, or the decisions issued by the committee assembly of the creditors. That is why the vigilance, practice and experience of a Romanian debt collection and litigation lawyer, specialized in insolvency proceedings, is an important advantage of the creditor, in order to achieve the objective of recovering its claims. Also, the creditor may file, for the entire or a part of the liability, a claim of personal liability against the governing bodies of the debtor company, if they are responsible of the company’s becoming insolvent”, said Phd. Lawyer Catalin – Radu Pavel, who participated at the conference in Romanian – Solutions for Recovery of Goods and Debt”, organized by Legal Magazine review.
Creditors have to consider a lot of legal issues when they have to recovered a claim from a debtor who went into insolvency proceedings. The most important aspects were pointed out by Lawyer Catalin – Radu Pavel in the speech sustained at the conference in Romania.
Thus, once the debtor has opened the insolvency proceedings, creditors must file a statement of claims for enrolment at the creditor’s table in order to recover the debts. The deadline for submitting claims for admission and displaying the Preliminary Table is no more than 60 days after the insolvency procedure was opened. The debtor, creditors and any other interested party will be able to make appeals against the preliminary claim table.
Subsequently, the administrator or the liquidator may file with the syndic judge actions for the annulment of fraudulent acts or fraudulent operations of the debtor in the 2 years prior to the opening of the proceedings.
A reorganization plan may be drafted, by the debtor, by the legal administrator, or by one or more creditors that hold together at least 20% of the total receivables. The reorganization plan must be approved by the creditors’ assembly and confirmed by the syndic judge. The plan provides a timetable for paying debtors’ debts.
If the reorganization plan is not accepted, the firm will go bankrupt. The debtor’s assets will be sold, and the amounts recovered will be distributed to the creditors in the order provided by the insolvency law.
At the same time, it must be remembered that the recovery of debts can be done also from the persons who are responsible of the company’s becoming insolvent. In this respect, at the request of the insolvency practitioner or the liquidator, the syndic judge may order that a part or all of the debtor’s liabilities may be paid by the members of the management and / or supervisory bodies within the company, as well as by any other person who contributed to the debtor’s insolvency.
Over the years, Romanian debt collection and litigation lawyers from Pavel, Margarit & Associates Romanian Law Firm offered legal advice and representation both to creditors who recovered claims from companies in insolvency and to insolvent debtors, who received unjustified insolvency claims.
Although financial crisis is over, tens of thousands of companies are still in insolvency. Taking into account the number of files registered at the Bucharest Court, we notice that they have been decreasing in recent years. However, there are still a large number of files and also a large number of files assigned to a judge, on average.
Thus, in 2014 there were 19,900 files in the Bucharest Court, in 2015 – 20,175 files, and in 2016 – 15,200 files. In 2014, a single judge in the Section VII of the Bucharest Court had to solve an average of 1,400 files. In 2015 the average dropped to 990 files, and in 2016 to 820.
Also, in the years 2014-2016, when it comes to cases concerning the enforcement titles issued by a judge, a peak year, as will be noticed, was 2014. In 2014 there were 155,000 court files regarding the enforcement titles, about 20,000 court files in 2015, and about 100,000 new court files in 2016.
Pavel, Margarit & Associates Romanian Law Firm is one of the top law firms in Romania, which offers legal services at the highest quality, beyond clients expectations. The Law Firm approaches the cases with maximum professionalism and dedication. Its ultimate goal is obtaining exceptional results and achieving the clients objectives, in a time efficient manner. Among Pavel, Margarit & Associates clients are top multinationals and local companies. In 2017, the success stories of the Romanian Law Firm have brought recognition of the most prestigious international guides and publications. Thus, Pavel, Margarit & Associates Romanian Law Firm ranked second place in Romania in the rankings of business law firms with the most relevant expertise this year, realised by the Legal 500 publication, the most prestigious guide for law firms in the world, based in London, UK. The law firm is also recognized internationally by IFLR 1000 Financial and Corporate Guide 2018. Pavel, Margarit & Associates Romanian Law Firm is also the only law firm in Romania recommended by the Global Law Experts Director in London in the Dispute Resolution area of Practice. All the relevant information regarding Pavel, Margarit & Associates Romanian Law Firm including areas of practice and the most important deals can be found on the website www.avocatpavel.com, which is one of the most complex law firm websites in Romania.