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Ruling on Declaration of Bankruptcy
Article 710
The court declares the debtor to be bankrupt, in the event that a plan under Art. 696 has not been proposed within the period provided by law or the plan proposed has not been accepted and approved, as well as in the cases under Art. 630, paragraph 2, Art. 632, paragraph 1, and Art. 709, paragraph 1.
Contents of the Ruling on Declaration of Bankruptcy
Article 711
- (1)
-
By the ruling on declaration of bankruptcy, the court:
- 1.
- Declares the debtor to be bankrupt and decrees termination of the activity of the enterprise;
- 2.
- Decrees a general attachment on the debtor's assets;
- 3.
- Terminates the powers of the debtor's organs when he is a legal person;
- 4.
- Deprives the debtor of the right to manage and dispose of the assets, the bankruptcy estate included;
- 5.
- Institutes the start of the conversion of the bankruptcy estate assets into cash, and of the distribution of the cash.
- (2)
Effect of the Ruling, Entering, and Promulgation
Article 712
- (1)
- The ruling on declaration of bankruptcy shall be effective towards all persons.
- (2)
- The ruling on declaration of bankruptcy is entered in the respective court register and is promulgated in the State Gazette.
Appeal against the Ruling on Declaration of Bankruptcy
Article 713
- (1)
- The ruling on declaration of bankruptcy is subject to an appeal within 7 days after promulgation.
- (2)
Immediate Execution
Article 714
The ruling on declaration of bankruptcy is subject to immediate execution.
Decreeing a general Attachment and Entering It
Article 715
- (1)
- As from the day of promulgating the ruling on declaration of bankruptcy, the real estate, the chattels and the debtor's receivables from third bona fide persons shall be deemed attached.
- (2)
- The attachment on the debtor's real estate and ships shall be entered in the notary public's registers, in the ships' registers respectively, on the basis of the announcement of the debtor's being declared insolvent promulgated in the State Gazette.
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