Possibilities of recovery from insolvent debtors (bankruptcy)

The insolvency proceedings (bankruptcy) in general shall be initiated by the
debtor or creditor’s proposal. If all the conditions for opening insolvency
proceedings have been met, then the court is seised of the order of opening
of insolvency proceedings to be published on the e-board of the court. That
order must include an invitation to insolvency creditors to lodge their claims
to the insolvency liquidator within 60 days of the publication of the opening
of the insolvency proceedings. If the creditors do not lodge their claims
within that period, they shall then lose the possibility to recover their claims.
If you have a claim against a debtor who is unfit to pay or who is
overcharged, and you have no experience and sufficient knowledge of
bankruptcy laws, it would be good to hire a lawyer in time to make that
deadline and thus try to collect your claim. Or in other words, it is very
important that it is necessary to react without delay because of the risk of
loss of the right to recover your claims.

The creditors shall be the personal creditors of the debtor who, at the time
of the opening of the insolvency proceedings, have any property claim
against him. They shall be classified in payrolls according to their claims.
Creditors of a later payment order may be settled only after they are fully
settled by the creditors of the previous payment order. Creditors of the same
payment order are settled in proportion to the size of their claims. The
claims of higher payments shall have priority in settling before the claims of
the lower cost-paid rows.

Creditors may only exercise their claims against the debtor in insolvency
(bankruptcy) proceedings. Following the opening of the insolvency
proceedings, individual insolvency creditors may not seek enforcement
against the debtor or insurance on parts of assets entering the insolvency
estate or other assets of the debtor.Once the insolvency proceedings are
opened, the liquidator shall immediately take possession of the assets
entering the insolvency estate and manage it.

The application of the claims of the creditors shall be filed with the
liquidator, which shall then draw up a list of all the claims of the worker and
the former debtor’s employees due until the opening of the insolvency
proceedings in bruto and netto amounts. If the worker or the former debtor
worker did not report the claim, he would be deemed to have declared the
claim in accordance with the list drawn up by the liquidator. Claims by
creditors of lower payments shall be declared only on a specific call from the
court. The liquidator shall draw up on the prescribed form a table of the
declared claims to be published on the e-board of the court and the lodging
of claims and documents shall be presented in the Registry of the Court for
inspection by the parties after the expiry of the deadline for lodging claims.

The next step is the maintenance of the test hearing on which the claims
submitted are examined. The liquidator shall disclose whether or not he
disputes the claim. The court shall draw up a table of the claims examined in
respect of each claim declared to what extent it is established by its amount
and order, that is to say, who contested the claim. On the basis of the table
of claims examined, the court takes a order on the identified and contested
claims published on the e-board of the court.

The settlement of bankruptcy creditors is carried out after the investigation
and after the reporting hearing. The liquidator shall, without delay, liquidate
assets entering the insolvency estate. The assets are sold through public
tendering, free-bargain or public collection of offers. The liquidator shall do
the settlement of bankruptcy creditors according to the cash flows of the

Finally, the court all disclosures regarding insolvency proceedings are made
by means of the internet and which disclosure is very important to follow up
on a regular basis.