INSOLVENCY IN THE CONTEXT OF THE PRESENT FINANCIAL CRISES – A COMPARATIVE ANALYSES

Abstract

This paper presents the current trends in the view of various national states and their on the application of collective insolvency proceedings, also called bankruptcy procedure in common language, by analysing their main pieces of legal regulation, extremely useful both for specialists as well as for creditors and debtors. The fact is that thanks to this procedure, businesses which are in a state of financial crisis, either actual or upcoming can be placed under court protection from creditors which results in blocking enforcement and increasing interest and penalties, allowing them a new start through a reorganization of their activities. Reorganizaing the activities of insolvent debtors activity may also be in the interest of creditors, if they cannot obtain sufficient repayment through the debtor’s bankruptcy. Thus, requests to open insolvency proceedings by them will appear as a means to preserve their rights and to avoid irreversible deterioration of the situation of the deptor. On the other hand, an aggressive insolvency procedure may be used by creditors as a means of pressure in order to obtain a quick settlement of their receivables from solvent borrowers acting in a state of panic created by the existence of an application to open a bankruptcy procedure. And not least, the paper presents how the situation has seriously deteriorated regarding the criteria allowing businesses to apply for an insolvency procedure and the proper use of the benefits of this procedure.bankruptcy, crises, insolvency, insolvability