The bankruptcy is the last solution, applied when it is certainly known that the recovery of a trade company is not possible any more, the only method for paying, partially or fully, the debts being the full liquidation of assets.

The procedure is applicable for the trade companies, cooperative companies, corporate organizations, agricultural companies, groups of economic interest and any legal person with private rights that carry out economic activities, traders that are within the category of debtors found in a state of insolvency or imminent insolvency.

WHO CAN REQUEST THE BANKRUPTCY?

The main criteria that represent the fundation of establishing the bankruptcy are the lack of funds and the level of indebtedness.

Entering bankruptcy

• The debtor declared its intention to open the simplified procedure;
• The debtor has not declared its reorganization intention or challenged (the creditors’ request for opening the procedure) that he would be insolvent and the challenge was dismissed;
• None of the other entitled subjects of law have not proposed a reorganization plan or none of the proposed plans have not been accepted and confirmed;
• The debtor declared its intention of reorganization, but it has not proposed;
• The payment obligations and the other undertaken obligation are not fulfilled according to the conditions stipulated by the certified plan or the development of the debtor’s activity during its reorganization leads to the loss of its assets.

Effects of the bankruptcy procedure

In order to assess and administer easily the debtor’s patrimony, but also in order to examine the debtor’s activity, on which it is initiated the bankruptcy procedure and to make an inventory of assets and to take all the adequate measures for their preservation, the law provides the assignment of a liquidator.

This maintains and denounces the agreements held by the debtor, proceeds to the verification of receivables and follows-up their cashing from the debtor’s patrimony, receiving the payments on behalf of the debtor and their cashing in its account and estate.

Finally, the liquidator shall deal with selling the goods from the debtor’s assets, entering transactions, discharge of debts and waiving the guarantees.

In case it is found that there are no goods in the debtor’s patrimony or that these are insufficient in order to cover the administrative expenses and no creditor offers to advance the amounts, it can be ruled an order by which it is disposed the debtor’s deregistration from the register where it is registered.

Also, it should be mentioned that the law sanctions the non-introductions or late introduction of the request for opening the bankruptcy procedure, by the debtor – legal person or duly representative of the legal person.
Of course, the bankruptcy procedure can be seen as a last solution for creditors in order to recover their receivables, and the debtor shall be, by closing the bankruptcy procedure, released from any obligations it had before entering bankruptcy.