Slovak Financial Law News 2005

Objectionable Legal Acts

The new Act regulates in more detail the possibilities to raise objections to legal acts. The possibility to raise an objection is governed under the conditions laid down in the Act, i.e. with respect to (i) the legal acts without an adequate consideration, (ii) the legal act that gives advantages to certain persons, (iii) the legal act that injures certain persons, and also to (iv) the legal act performed after the termination of the bankruptcy. A creditor is entitled to raise an objection to the legal act regarding the debtor's assets only in the case the trustee refused the creditor's suggestion of raising an objection within the reasonable period. Under the new Act, the right to raise an objection to legal acts shall expire if it is not exercised in relation to the liable person or in court within 6 months from the date of declaration of the bankruptcy.