Who can file for bankruptcy in India

Bankruptcy in Slovakia

from lawyer Dr. Margareta Sovova, [email protected],
Tel. +421 - 2 - 57 88 00 88

My Slovak business partner is threatened with bankruptcy

A debtor domiciled in Slovakia is insolvent if he is insolvent or over-indebted. If this debtor files for bankruptcy, it is said that he is bankrupt.


When is a Slovak debtor insolvent?


A legal person is insolvent if it is unable to pay at least two monetary liabilities to more than one creditor more than 30 days after the due date. When assessing the debtor's insolvency, all claims that originally belonged to only one creditor during 90 days prior to filing for bankruptcy are deemed to be a claim. A natural person is insolvent if they are unable to pay at least one monetary liability more than 180 days after the due date.


The Slovak debtor informed me that he is over-indebted. What does it mean?


Over-indebted is someone who is obliged to keep accounts, has more than one creditor, and the value of his liabilities exceeds the value of his assets. When determining the value of the liabilities and the value of the assets, the bookkeeping or the value determined in the expert report, which takes precedence over the bookkeeping, is used as a basis. Expected results of further asset management or the further operation of the company are also taken into account if, taking into account all circumstances, there is a reasonable expectation that the asset management or the operation of the company can be continued. Neither liabilities that are subject to the obligation of subordination nor liabilities that would have to be satisfied in the order of priority as subordinated claims in insolvency proceedings are included in the total of liabilities. Please note that subordinate claims also include claims between related persons, i.e. claims within "the group".


Obligation of the Slovak debtor to file for bankruptcy

An overindebted Slovak debtor is obliged to file for insolvency within 30 days of becoming aware of his own overindebtedness or if he should have recognized the overindebtedness with professional care. The representative body or a member of the representative body of the debtor, e.g. managing director of a GmbH, the debtor's liquidator and the debtor's legal representative, also have this obligation on behalf of the debtor. If the debtor does not file for bankruptcy in time, there is a risk of a penalty payment to the company in the amount of EUR 12,500.


Bailiff filing for bankruptcy against a Slovak business partner due to non-payment of a claim

As a foreign creditor, you are entitled to file for bankruptcy against your business partner if you have reasons to believe that your business partner is insolvent. According to the law, such reasons exist if the debtor is more than 30 days in arrears with the fulfillment of at least two monetary liabilities to more than one creditor and this creditor has requested in writing to perform.


Process of filing for creditor bankruptcy

If the insolvency petition is filed by the obligee, he must state in it the circumstances from which the insolvency of the debtor can be seen: his claim, which has been due for 30 days; and another creditor with a claim that is also due 30 days. The obligee must attach documents to the application to prove the claim named in the application. The applicant substantiates the claim with one of the following documents:
a) written acknowledgment of debt by the debtor with an officially certified signature,
b) an enforceable order or any other title authorizing foreclosure,
c) Confirmation from an auditor, administrator or expert that the applicant is keeping the claim in the accounts in accordance with the accounting rules and, if it is a claim acquired as a result of the transfer or transfer, also an auditor's confirmation , an administrator or an expert that the reason for the origin of the claim in the applicant's bookkeeping is documented (if the application is made against a legal person), or
d) Confirmation of the Ministry of Finance of the Slovak Republic on the existence of the state claim from a grant granted to the debtor from EU funds, approved and recorded by the certification body.


Choosing the insolvency administrator in a Slovak bankruptcy


Since the insolvency administrator is randomly appointed by computer, neither the creditor nor the debtor has any influence on the choice of the insolvency administrator.


Change of liquidator in a Slovak bankruptcy

According to the law, the insolvency administrator must allow himself to be elected to his function in the first creditors' meeting via the confirmation of the insolvency administrator. The insolvency administrator can also be changed in other creditors' meetings.


Filing a claim in a Slovak bankruptcy


As a foreign creditor, you have two options to file your claims in Slovak bankruptcy proceedings. You can either use the option to file a claim in accordance with the Slovak Bankruptcy and Restructuring Act, in which case you must fill out a registration form, or, as a foreign creditor, you can also file a claim in accordance with Regulation (EC) No. 2015/848 on bankruptcy proceedings .


The amount of the usual settlement of a claim in a Slovak bankruptcy

The satisfaction of a claim is different for a secured and an unsecured claim.

A creditor who has registered his claim with a security interest in a Slovak bankruptcy can be satisfied in the bankruptcy from the proceeds from the realization of the property that secures his claim. The amount of satisfaction depends on the value of the property that secures the claim.
A creditor with a claim that is not secured by a security interest will be proportionally satisfied from the bankruptcy estate. Experience has shown that the creditor obtains satisfaction of up to approx. 5% of the claim.


Processing status: September 2018