Insolvency proceedings have several stages. The course of a specific set of proceedings will vary, depending on the circumstances of the case. In practice, however, insolvency proceedings usually comprise these stages:
- an insolvency petition commencing the proceedings
- a decision on the debtor’s insolvency
- a decision as to how to deal with the debtor’s insolvency
- implementation of the method chosen to deal with the insolvency
- the end of the proceedings
The Insolvency Act provides several options to choose from as the most fitting for a specific debtor and considers liquidation procedures (bankruptcy) as well as rehabilitation (reorganisation and discharge of the debtor). The choice of the method that is suitable for dealing with the debtor’s insolvency should follow the principle of the best possible satisfaction of creditors.
We can assist you or prepare expert opinions at any stage of insolvency proceedings.
If you are exposed to the risk of insolvency proceedings, you may want to consider submitting to the court an expert opinion on whether you are insolvent or not. At the same time, we can assist you in preparing a liquidity balance report to calculate the liquidity gap.
If insolvency is declared and reorganisation under consideration, we are ready to act on the decision of the creditors’ meeting and prepare an expert opinion pursuant to Section 153 of the Insolvency Act serving the purpose of deciding the reorganisation.
Damages in connection with insolvency proceedings commenced without good reason
We can also calculate damage incurred as a result of insolvency proceedings commenced without good reason. If the proceedings to decide on a creditor’s insolvency petition are discontinued or the insolvency petition is rejected or dismissed for fault on the petitioner’s part, the debtor or other creditor of the debtor has the right to demand compensation from the petitioner for the damage or other harm incurred in connection with the commencement of the insolvency proceedings and the measures adopted during the proceedings. It is advisable for the amount of such damage or harm to be supported by an expert opinion.
If you are a creditor, we can check for you the information presented by a debtor in regular reports or the parameters of the debtor’s plan for reorganisation.
We are also available for you to discuss anything ensuing from the financial circumstances in order to set up appropriate communication with your creditors.