Procedures for Preventing the Insolvency of Professionals Cover Image

Procedures for Preventing the Insolvency of Professionals
Procedures for Preventing the Insolvency of Professionals

Author(s): Daniela Ciochina
Subject(s): Business Economy / Management
Published by: Scientia Moralitas Research Institute
Keywords: insolvency; bankruptcy; professional, company;
Summary/Abstract: Insolvency procedures are constituted as measures aimed for the debtor and/or creditor(s) either to help the former to recover from its financial duress or the later to recover as much debt as is possible without prejudice to others. The insolvency decision must be taken in due time in order to be able to find financing and reorganization solutions for the activity, so as to avoid the bankruptcy of the professional. Most legal systems integrate certain warning-procedures (pre-insolvency procedures) for the debtor or creditor to start so as the former is not subjected to the implications of the more serious insolvency procedure when, in most cases, is too late to recover. The professional is defined by art. 3 par. (2) Civil Code as anyone that is operating an enterprise. The procedures provided by this law apply to these professionals with the exception of those exercising liberal professions, as well as those in respect of which special provisions are provided regarding their insolvency regime (e.g. banks, insurance companies). Insolvency legislation is based on guiding principles, which are found in the Law no 85/2014 regarding prevention procedures of insolvency and insolvency. Starting from my opinion that some of these principles on which the prevention of insolvency of professionals in Law no 85/2014 is based, are sufficiently artificial and rigid, broken by practical applicability, I will address in this article the exclusion of the true basic rules that are disregarded or omitted from a written point of view and especially from the point of view of applicability in practical reality.

  • Page Range: 202-207
  • Page Count: 6
  • Publication Year: 2020
  • Language: English