Insolvency lawyer in Romania: prevention, reorganisation and claims
Legal support for companies in difficulty, for creditors and for directors, backed by direct experience as an insolvency practitioner.
A company's financial difficulties are easier to manage when they are recognised early. Romanian law offers preventive tools, such as the ad-hoc mandate and the preventive composition with creditors, which allow negotiation with creditors before the situation becomes irreversible. We review cash flow, debts and contracts to see whether a restructuring is realistic.
Mr. Bocse Marian-Mihaita is also an insolvency practitioner. This means we understand the procedure from the lawyer's side as well as from that of the judicial administrator and liquidator: how the table of claims is drawn up, how a plan is voted on, which documents are required and which transactions are later scrutinised.
We represent debtors, creditors and former directors at every stage: opening of proceedings, challenges, reorganisation, bankruptcy and liability claims. We also assist individuals who can no longer pay their debts in personal insolvency proceedings. The roles of lawyer and practitioner are not combined in the same case, as required by law.
Services for debtors, creditors and directors
- Legal assessment of the financial position and insolvency risk
- Ad-hoc mandate and preventive composition, negotiation with key creditors
- Debtor's petition to open proceedings, with the documents required by law
- Creditor's petition to open proceedings and the debtor's objection
- Judicial reorganisation: drafting the plan, negotiation and creditors' vote
- Bankruptcy, sale of assets and distribution of proceeds
- Filing claims with the estate and challenging the table of claims
- Challenges to measures taken by the judicial administrator or liquidator
- Actions to set aside acts and transfers made to defraud creditors
- Defending directors in claims under Art. 169 of Law no. 85/2014
- Representing creditors in the creditors' meeting and committee
- Personal insolvency (Law no. 151/2015): repayment plan and debt discharge
When to seek advice from an insolvency lawyer
- The company can no longer pay wages, suppliers or taxes on time
- You have been summoned in insolvency proceedings brought by a creditor
- A customer who owes you money has entered insolvency or bankruptcy
- As a former director, you are being sued for the company's debts
- The liquidator is seeking to set aside a sale or payment made before the proceedings
- You are an individual whose debts have long exceeded your income, and you see no way out
How we work
Assessing the situation
We review the balance sheets, list of debts, contracts and any enforcement to establish what stage the company has reached.
Choosing the procedure
We explain the differences between prevention, reorganisation and bankruptcy and what each means for the company and for you.
Documents and deadlines
We prepare petitions, statements of claim or challenges and keep track of procedural deadlines, which are usually short.
Ongoing representation
We represent you before the insolvency judge, in creditors' meetings and on appeal, throughout the proceedings.
Stages of insolvency proceedings
Petition to open proceedings
Filed by the debtor or a creditor with the competent court, with the documents required by law.
Opening of proceedings
The syndic judge opens the proceedings and appoints the judicial administrator or liquidator.
Observation period
The table of claims is drawn up, the company's situation is analysed and the prospects of reorganisation are assessed.
Reorganisation plan or bankruptcy
Creditors vote on the plan; if there is no viable plan, the company goes into bankruptcy.
Reorganisation or liquidation
The plan is carried out, or the assets are sold and the proceeds distributed.
Closing of proceedings
The court closes the proceedings and the company is, where applicable, struck off the trade registry.
Frequently asked questions
Within what time must the debtor file for insolvency?
Under Art. 66 of Law no. 85/2014, a debtor in a state of insolvency must apply to open proceedings no later than 30 days after becoming insolvent. Failing to do so can have consequences for the directors. If the company is only at risk of insolvency, the preventive tools are worth considering first.
Are directors personally liable for an insolvent company's debts?
Not automatically. Liability under Art. 169 of Law no. 85/2014 requires proof of specific acts listed by the law which contributed to the insolvency, and of the link between those acts and the loss. The defence is built on the accounting records, the economic context and the decisions the director actually took.
What should a creditor do when a debtor becomes insolvent?
The creditor must file a statement of claim, with supporting documents, by the deadline set in the decision opening the proceedings. After that deadline, rights may be lost or limited. It is also worth keeping track of the table of claims, the creditors' meetings and any suspicious transactions the debtor made before the proceedings.
What is personal insolvency in Romania?
It is the procedure under Law no. 151/2015 for individuals whose debts they can no longer pay from their income. Under certain conditions a repayment plan can be set, and at the end part of the debts may be discharged. There are strict eligibility conditions and obligations during the procedure, which we explain before any application is filed.
Other practice areas
Do you need a lawyer?
Tell us briefly about your situation. We will tell you honestly what can be done and what the next steps are, anywhere in Romania.
