|
|
Ruling on Institution of Bankruptcy Proceedings
Article 630
- (1)
-
Where the court has established insolvency and respectively overindeptedness, by its ruling it shall:
- 1.
- declare insolvency, respectively overindeptedness and determine the initial date thereof;
- 2.
- institute bankruptcy proceedings;
- 3.
- appoint a temporary receiver in bankruptcy;
- 4.
- allow for provision of security by means of imposing attachment or other security measures.
- 5.
- fix a date for the first meeting of creditors, not later than one month following the issue of the ruling.
- (2)
- Where it is obvious that further continuance of the activity could damage the bankruptcy estate, the court may, upon request by the debtor, respectively the liquidator, the assignee in bankruptcy or creditor, declare the debtor bankrupt and terminate his activity concurrently with the ruling to institute bankruptcy proceedings.
- (3)
- The ruling on instituting bankruptcy proceedings shall be effective in respect of all.
Ruling to Reject the Application
Article 631
The court shall reject the application, should it establish that the debtor's distress is temporary and that he disposes of sufficient assets to cover the obligations, safeguarding the creditors' interests.
Ruling to Terminate Proceedings
Article 632
- (1)
- Where the available assets are insufficient to cover expenses related to the bankruptcy proceedings, the court shall declare the insolvency, determine the initial date thereof, declare the debtor bankrupt and terminate the proceedings, unless any person concerned pays in advance the necessary amount.
- (2)
- The amount under paragraph 1 shall be reimbursed, provided the bankruptcy estate increases sufficiently.
Appeal of Rulings
Article 633
Rulings pursuant to Articles 630, 631 and 632 may be appealed within 7 days as from the date of promulgation in the State Gazette.
Immediate Implementation
Article 634
Rulings pursuant to Article 630 shall be implemented immediately.
|
|
