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Bankruptcy is a general means of handling insolvency according to which creditors’ claims are satisfied pro rata from the proceeds generated by the realisation of assets. Parts that remain unsatisfied are not extinguished.
Bankruptcy is a general means of handling insolvency where, on the basis of a bankruptcy order, creditors’ established claims are satisfied, as a matter of principle, pro rata from the proceeds generated by the realisations of assets. Unsatisfied claims or parts thereof are not extinguished unless otherwise provided by law. This insolvency method is always used when it is impossible to use reorganisation or debt relief as procedures that are softer on the debtor, or if it becomes clear in proceedings that those methods cannot be continued.read more
Reference to legal acts
Section 244 et seq. of Act No 182/2006 on bankruptcy and the management thereof (the Insolvency Act), as amended
Compliance date: Last checked at 25.11.2020