Insolvency lawyers - Complete Legal Services
Complete Legal Services
What is insolvency?
Insolvency arises when a company or an individual can no longer meet its payment obligations. The insolvency procedure aims to protect creditors while also seeking a solution for financial recovery. A lawyer specialised in insolvency can guide you through all stages of the procedure, ensuring compliance with the legal framework and protecting your interests.
The lawyer’s role in insolvency proceedings
What is the purpose of insolvency proceedings?
Insolvency should not be confused with temporary payment difficulties, which are inherent to any private business.
The purpose of insolvency proceedings is to cover the claims against a debtor whose financial condition is irreparably affected, making it necessary to place them under the supervision of the bodies applying the procedure – the courts of law, the syndic judge, the judicial administrator and the liquidator.
Insolvency proceedings should not be confused with ordinary civil proceedings for enforcing a claim, nor with standard enforcement procedures.
How do we help?
Our firm provides a wide range of legal services tailored to each client’s needs:
- Assistance in opening insolvency proceedings;
- Representation before courts and authorities;
- Drafting reorganisation plans;
- Consultancy for liquidation or continuation of activity;
- Holding administrators financially liable.
Assistance and representation before the syndic judge
The syndic judge plays a central role in insolvency proceedings. Your lawyer will ensure that all legal requirements are met, from filing the necessary documents to presenting key arguments before the court.
Legal consultancy for legal entities and individuals
Whether you represent a company or need individual legal support, our services cover all stages of insolvency.
Why choose a specialised insolvency lawyer?
A lawyer specialised in insolvency not only understands the procedural framework, but also offers strategic, tailored solutions for each case.
Liquidation and reorganisation procedures
One of the major decisions in insolvency is the choice between reorganization and liquidation. While reorganization offers the chance to turn around a company's financial situation, liquidation involves closing down the business and selling off the remaining assets to cover the debts owed to creditors.
Reorganisation
A specialised lawyer can draft a reorganisation plan that may include:
- rescheduling debts;
- reducing operational costs;
- selling non-productive assets;
- reassessing and restructuring staff;
- reorganising management structures;
- legal consultancy and strategy.
Liquidation
If there is no prospect of recovery, liquidation procedures apply. Your lawyer will work with the judicial liquidator to maximise the value of the liquidated assets and protect creditors’ interests.
How we manage insolvency for our clients?
Our process involves clear, structured steps to deliver the best solutions:
Initial assessment
- We analyse the client’s financial and legal position;
- We identify the causes of insolvency and potential recovery opportunities.
Tailored strategy
- We create a plan adapted to each client’s needs;
- We provide advice on reducing risks and optimising resources.
Representation in court
- We prepare all necessary documents;
- We ensure representation before the syndic judge.
Patrimonial liability and establishment of liability
A sensitive issue in insolvency proceedings is the establishment of liability on the part of administrators or other persons responsible for the state of insolvency. According to the law, if it is proven that their decisions led to the deterioration of the financial situation, they may be held liable.
How can a lawyer help?
- investigating the causes of insolvency;
- preparing the defence to avoid patrimonial liability;
- representation in court in such complex cases.
How long does insolvency last?
In the event of insolvency, the debtor is obliged to request the opening of insolvency proceedings, otherwise the management bodies may be held civilly or even criminally liable. According to Article 169 of Law No. 85/2014, the syndic judge may order that part or all of the debtor's liabilities be borne by the members of the management and/or supervisory bodies of the company if they used ruinous means to procure funds for the legal entity in order to delay the cessation of payments.
Also, according to Article 240 of the Criminal Code, failure to file or late filing, by the individual debtor or the legal representative of the legal entity debtor, of the application for the opening of insolvency proceedings, within a period exceeding more than 6 months from the date of the onset of insolvency, as provided by law, is punishable by imprisonment from 3 months to 1 year or by a criminal fine.
Insolvency and bankruptcy – differences and solutions
Often, the terms “insolvency” and “bankruptcy” are used interchangeably, but there are essential differences:
- Insolvency refers to the inability to pay debts when due and may lead to reorganisation or bankruptcy;
- Bankruptcy is the final stage of insolvency and involves liquidation of assets and definitive closure of the business.
With the help of a specialised lawyer, you can navigate these complex processes and find the optimal solution for your situation.
When is insolvency opened?
Insolvency proceedings may be initiated at the request of the debtor, but also at the request of any creditor who can justify a certain, liquid, and enforceable claim that is more than 60 days old and exceeds the threshold value of 50.000 Lei.
In the case of such claims, insolvency is presumed, with the debtor having the possibility to counter the presumption by any means of evidence.
A claim is considered certain, liquid, and enforceable if its existence is unquestionable based on a title (e.g., a service contract), their subject matter is determined or when the title contains the elements that allow its determination and the debtor's obligation has fallen due or the debtor has been deprived of the benefit of the payment term.
By the decision to open general insolvency proceedings, the syndic judge will appoint a provisional judicial administrator, and in the case of simplified bankruptcy proceedings, a provisional judicial liquidator.
The latter shall notify the creditors of the opening of the proceedings, analyze the statements of claim made by the creditors, draw up a report on the causes that led to insolvency, draw up a table of claims and conduct the reorganization of the debtor or, where appropriate, the liquidation of its assets. Their activities will be described in activity reports that will be submitted to the insolvency file and published in the Insolvency Proceedings Bulletin.
Can fraudulent acts be annulled in insolvency?
The judicial administrator may ask the syndic judge to annul fraudulent acts concluded by the debtor before the opening of insolvency and may terminate any contract, unexpired lease or long-term contract that has not been fully or substantially performed by all parties. In case of termination, contracts cease without court intervention or other formalities.
In the absence of termination or other grounds for cessation, ongoing contracts are deemed maintained at the date of opening proceedings and any clauses providing for termination, acceleration or loss of benefit of the term due to the opening of insolvency are void.
How we approach each case
Initial consultation
Initial consultation is the time when we understand the complexity of the case and provide the information needed for an informed decision.
Developing the defence strategy
Every strategy is adapted to the specifics of the case. We analyse all evidence and discuss advantages and risks.
Representation in court
We ensure that arguments are presented clearly and convincingly.
Legal analysis
Each case is carefully examined and we offer 24/7 support to our clients.
Constant communication
We maintain open communication, keeping clients informed about the progress of their case.
Răspunsuri la întrebări frecvente despre procedura insolvenței
* EXCLUDERI
Prezentul chestionar include numai răspunsuri generale la o serie de întrebări primite de la clienții noștri și nu va putea fi considerat ca fiind o opinie legală sau activitate de consultanță. Orice act de asistență juridică, incluzând dar fără a se limita la acordarea de consultanță, va putea fi prestat numai după ce vor fi primite toate documentele relevante și o descriere cuprinzătoare a situației de fapt. Soluțiile oferite pot fi diferit față de răspunsurile de mai sus în funcție de împrejurările concrete ale fiecărei spețe.
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