The Insolvency Law in Slovakia stipulates two processes available to debtors in financial difficulty: bankruptcy and restructuring. Foreign investors who are conducting business in Slovakia and experience a difficult financial period, can address our team of restructuring and insolvency attorneys in Slovakia. They can offer legal advice in accordance with the insolvency rules and regulations.
A Slovak company can commence bankruptcy procedures upon declaration by the court. The initial phase of bankruptcy in Slovakia provides that the property of debtor ascertainment is carried out by a trustee (bankruptcy administrator). The creditors and competent courts supervise the bankruptcy process, through an appointed trustee. According to the bankruptcy legislation in Slovakia, a conversion of all residual property of the debtor and its liquidation with the purpose of satisfying the creditors` financial conditions is possible. There are three criteria to be met in order to declare bankruptcy liquidation in Slovakia:
• The value of the assets is below 165,000 EUR;
• The sales are below 333,000 EUR;
• The total number of creditors is smaller than 50.
The creditors must register their financial claims in order to participate in bankruptcy. This registration procedure can take place at any time and security rights (mortgages and title transfer securities) are usually taken into consideration by the certified court. The trustee of a bankruptcy process in Slovakia can be an individual or a legal entity and must have a legal or economic university degree and pass a specific exam. You can rely on the professional services of our lawyers in Slovakia if you find yourself in a bankruptcy situation.
The restructuring legislation in Slovakia provides for an initial phase, when the evaluation of all prerequisites is executed by court. A restructuring process can be carried out in a debtor`s insolvency. The administration of the debtor`s property is entrusted to the court`s supervision. A restructuring and insolvency attorney in Slovakia will ensure that the following steps of a restructuring process are concluded:
• A considerable part of the debtor`s company continues to operate;
• The protection of the debtor is enforced by a Slovak court;
• A larger extent of creditor`s satisfaction is the main purpose of the restructuring process.
Feel free to get in touch with our law firm in Slovakia if you need legal representation in bankruptcy or restructuring process.
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