The ups and downs in the economy have contributed to the fact that many companies and individuals have decided to initiate an insolvency procedure, which consequently meant the need to follow how activities are being carried out within the context of an individual’s or company’s operations.
Insolvency law is comprised of those rules that apply when a debtor becomes insolvent. Perhaps it is the most important phase before the onset of insolvency, for the latter can be avoided by means of financial and legal reorganisation or restructuring. The purpose of these rules is to regulate legal property relations between an insolvent debtor and his creditors, as well as possibly reach a paid settlement for the creditors or by means of financial reconstruction enable the debtor to remedy his problems. Insolvency proceedings are governed by the Law on Financial Operations, Insolvency Proceedings and Compulsory Dissolution (ZFPPIPP). Insolvency proceedings are set out in Article 5 ZFPPIPP and are divided as follows:
- compulsory settlement proceedings,
- proceedings of simplified compulsory settlements,
- bankruptcy proceedings against a legal entity,
- personal bankruptcy and
- bankruptcy proceedings on inheritance.
While the proceedings of compulsory termination is governed by Article 6 of ZFPPIPP, which are:
- deletion from the register without liquidation and
- compulsory liquidation.
Our law firm also provides services in the area of making proposals due to insolvency, objections in bankruptcy proceedings, registered claims, complaints, the representation of clients before the bankruptcy court, the purchase and sale of assets, participation in creditors’ committees, etc. In addition to these services, our firm also provides advice, draws up contracts and coordinates the financial reconstructions of over-indebted companies.