Experience you can trust
Services
Bankruptcy proceeding
Bankruptcy proceeding is a civil procedure regulated by Act No. 7/2005 Coll. on Bankruptcy and Restructuring. Its aim is the collective and proportional settlement of creditors´ receivables against bankrupted debtor, by the monetization of debtor´s assets, in order to satisfy the creditors to the utmost extent.
A debtor is considered to be bankrupted when it is insolvent or over-indebted. In accordance to Act No. 7/2005 Coll. on Bankruptcy and Restructuring, the debtor is obliged to apply for bankruptcy within 30 day following the date when debtor has become, or might be expected to have become if maintained the professional care, aware of its bankruptcy.
The violation of aforementioned debtor´s obligation sanctions the liable persons (in particular the members of company executive´s bodies) by imposing them the commitment to pay the compensation in the amount of debtor´s basic capital registered in Business register at the time when the legal obligation of liable person was breached, maximally to the double amount of minimum registered capital of the company prescribed by respective legal provisions.
As of the day of bankruptcy declaration, the right of (bankrupted) debtor to dispose with the assets subject to bankruptcy and the right to act on behalf of (bankrupted) debtor in the issues related to the assets subject to bankruptcy, shall be transferred to bankruptcy trustee appointed by the court that acts in the name and on the account of bankrupted debtor.
The bankruptcy trustee shall perform the management of assets subject to bankruptcy and other duties under the Act No. 7/2005 Coll. on Bankruptcy and Restructuring, and other actions, in particular the actions related to monetization of all assets of (bankrupted) debtor´s and subsequently the proportional satisfaction of creditors from the revenue of such assets´ monetization.