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.
Articles from the practice area
Civil lawyer. Key steps to navigate a court procedure When dealing with civil litigation, the role of a civil lawyer becomes central in protecting your rights and guiding you through the legal system. A civil lawyer is trained to handle civil disputes, including real estate disputes, employment disputes, and cases involving civil liability. Without the […]
Legal consultation online. Benefits of quick access to specialized lawyers in Romania Legal consultation online has become one of the most requested solutions in Romania. A lawyer in Romania can now provide rapid and efficient legal assistance, while clients save both time and resources. Many Romanian lawyers working within a law firm or a modern […]
In today’s evolving legal and economic landscape, corporate conflicts, shareholder disputes, and strategic decision disagreements within companies have grown increasingly complex, requiring the intervention of business dispute lawyers, a corporate lawyer, or a business litigation attorney with deep knowledge of Romanian corporate law and commercial practice. Within the framework of an LLC or joint-stock company, […]
Intellectual property litigation has surged in Romania and across Europe, driven by the growth of digital markets, cross-border commerce and intensifying competition. Registered trademarks and trademark registration strategies are no longer merely formalities: they are essential business assets. Business owners who register trademark rights and who coordinate filings with bodies such as the EUIPO and […]
The process of divorce procedure and the division of co-ownership raises numerous legal and emotional challenges, making it essential for the parties to be well-advised. Choosing correctly between a court-based divorce procedure and an amicable route at a notary depends on the level of conflict between spouses, their willingness to cooperate, and the complexity of […]
The process of restitution of nationalized or abusively taken properties by the state is carried out through the National Authority for Restitution of Properties (ANRP) and through CNCI (National Commission for Property Compensation), in accordance with the provisions of Law 165/2013 regarding the measures for the finalization of the restitution process, either in kind or […]
Civil liability in Romania and tort liability are the legal framework through which damages are compensated in both contractual and extra-contractual relations. A clear differentiation between contractual liability and tort liability allows for determining the criteria for engaging responsibility and for establishing the compensation obligations. Through an action for damages in Romania, the injured party […]
Inheritance disputes constitute one of the most complex branches of civil law, having a major impact both on patrimony and on family relationships. Any succession is regulated by the Civil Code, and conflicts between heirs can be resolved amicably or, when this is not possible, through an inheritance process in court. In such situations, the […]
Tax disputes with NAFA are an increasingly frequent reality for both individuals and legal entities. Whether it concerns a tax dispute such as a contestation of an administrative act, a contestation of a tax decision, or a disagree with a tax decision, taxpayers must know the deadlines, procedures, and legal means through which they can […]
The debt recovery procedure in Romania represents an essential legal mechanism for protecting creditors’ rights and ensuring compliance with contractual obligations. By efficiently using the instruments provided by national legislation, creditors can achieve rapid results in matters of debt recovery and debt collection. Among the most frequently used procedures, the payment order, stands out, offering […]
As legal conflicts become increasingly complex and frequent, correctly approaching an action in court is necessary for protecting rights and interests. Whether it concerns a complex matter of civil litigation or clarifying the steps of the judicial process, the expertise of a civil lawyer, a litigation lawyer, or a defense attorney can make the difference […]
In the current context, where time is one of the most valuable resources, an online legal consultation emerges as the ideal solution for those who want to resolve legal issues quickly and efficiently. Whether you are facing litigation, need a legal assistance for drafting or reviewing documents, or simply wish to better understand your rights, […]