Bankruptcy and Debt Recovery in Serbia
Bankruptcy and debt recovery are critical processes for companies facing financial difficulties. For example, through bankruptcy proceedings, creditors are enabled to recover debts either by liquidation or by reorganizing the debtor’s assets. Furthermore, understanding the legal framework and acting promptly are essential for a successful outcome.
Why and When to Initiate Bankruptcy and Debt Recovery?
The process of bankruptcy and debt recovery is initiated in several specific situations, including:
- Persistent inability to pay debts, often signaling serious financial troubles.
- Over-indebtedness, making it difficult to operate and settle obligations.
- Non-compliance with a reorganization plan, indicating failure to address financial issues.
In addition, the initiative can come from creditors, a liquidation manager, or the debtor, while the court makes the final decision.
How Does Bankruptcy and Debt Recovery Work?
The process of bankruptcy and debt recovery begins with creditors filing claims with the bankruptcy court. Subsequently, the bankruptcy manager reviews the validity of claims and informs creditors of the next steps.
The procedure can end in two ways:
- Reorganization: Allows the debtor to continue operations while restructuring debts.
- Liquidation: Debts are recovered through the sale of the debtor’s assets.
Moreover, both approaches ensure transparency and legality throughout the process.
Order of Creditor Payment
In the process of bankruptcy and debt recovery, the order of payment determines the priority of each creditor:
- First Priority: Claims of current and former employees.
- Second Priority: Public charges and taxes.
- Third Priority: Other claims.
- Fourth Priority: Remaining claims.
Finally, all creditors have the opportunity to assert their rights under the law.
Legal Support – The Key to Efficient Debt Recovery
Given the complexity, adequate legal support is essential for successfully conducting bankruptcy and debt recovery procedures. Our team provides comprehensive assistance through:
- Filing creditor claims.
- Representation at hearings.
- Solutions for reorganization or liquidation of assets.
Additionally, our experts ensure maximum protection of creditors’ rights.
Conclusion
In conclusion, if you aim to successfully resolve the process of bankruptcy and debt recovery, contact us. Our team of experts is ready to support you through every stage of this process.