RESTORATION OF DEBTOR RIGHTS

Restoration of the rights of a sole proprietor debtor and an unlimited partner shall delete ex tunc the implications which the law relates to the declaration of bankruptcy.

(1)

Rights shall be restored to a debtor who pays in full claims recognised in the bankruptcy proceedings and the related interest and expenditures.

(2)

The rights of a debtor shall be restored also in case of non-full payment of debts if the bankruptcy is due to adverse changes in the economic environment.

(3)

The rights of an unlimited partner shall be restored pursuant to paragraphs 1 and 2. If he pays the debts of an insolvent company, and such payment shall not be considered an amount not owed.

The rights of a debtor convicted for bankruptcy shall not be restored.

(1)

Debtors shall file an application for restoration of rights in writing with the bankruptcy court.

(2)

The application shall be accompanied with evidence that the claims recognised in the bankruptcy proceedings have been paid.

Petition for restoration of rights of a deceased debtor shall be filed by one heir at least.

Notice of an application for restoration shall be published in the State Gazette.

Within a month after publication of the notice in the State Gazette any creditor with a recognised or established by court order claim can object in writing against the application for restoration.

An application for restoration and the related objections shall be considered in open session to which the petitioner and the objecting creditor have been summoned.

(1)

A court ruling in favour of the application shall not be subject to appeal.

(2)

A court ruling against the application for restoration of rights shall be subject to appeal by the debtor within a seven-day period.

(3)

A court ruling which has come into force shall be published in the State Gazette.

A new application for restoration of rights can be filed not earlier than one year after the ruling to reject an application has come into effect.

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