What the service includes
A counterparty’s bankruptcy does not automatically mean losing your money, but missing the deadline for admission to the register of claims does mean losing your voting rights in the bankruptcy case. It is important to act in time and to draw up the claim correctly.
Besides admission to the register, we analyse the debtor’s transactions in the period before bankruptcy. Challenging them often makes it possible to return to the bankruptcy estate assets that would otherwise go to affiliated persons.
Admission to the register is only the beginning. What follows is decided by how the creditor votes at meetings, whom they support as insolvency manager and what strategy for distributing the bankruptcy estate they advocate. We also assess separately the risk that the claim will be subordinated if the creditor is affiliated with the debtor in some way, a frequent reason for refusal of admission. We also handle parallel bankruptcy cases where the same counterparty owes the client through several legal entities of a group.
What the service includes:
Who it is for
The situations clients most often bring to us on this topic.
How we work
A fixed fee and a clear plan of action, agreed before work begins. The timeframes below are indicative and depend on the complexity of the case.
Assessment of the claim
We check the documents confirming the debt and calculate the amount of the claim, including interest and penalties. Timeframe: 2-3 days.
Filing the petition
We file the application for admission to the register of creditors’ claims within the statutory period. Timeframe: up to 2 months from the date of publication.
Analysing the debtor’s transactions
We examine transactions in the three years before bankruptcy for signs of asset stripping. Timeframe: 1-3 months.
Participation in the procedure
We represent the client at creditors’ meetings and, where necessary, challenge questionable transactions. Timeframe: the whole duration of the procedure.
What you will need at the start
We confirm the exact list for your situation at the consultation. This is a guide so that you arrive at the first meeting prepared.
Key figures
Experience in this practice area specifically, not in practice as a whole.
Common mistakes
Missing the deadline for admission to the register. An application for admission to the register must be filed within a strictly limited period after notice of the bankruptcy procedure is published. A late claim does not disappear, but it becomes a claim outside the register and is satisfied last, when the debtor often has no assets left.
Ignoring the first creditors’ meeting. Key decisions, such as the choice of insolvency manager, of the next procedure and of how assets are to be sold, are taken at the first creditors’ meeting. If a claim is admitted to the register after that date, the creditor effectively loses the right to vote at the most important stage.
Weak documentary support for the claim. A claim filed without a full set of supporting documents, such as contracts, reconciliation statements and court acts, is either reduced in amount by the court or left unconsidered until the defects are remedied, which in bankruptcy means weeks lost.
What you get
A court ruling on admission to the register. You receive a legally effective ruling admitting the claim to the register, the basis for taking part in the procedure and voting.
A vote at creditors’ meetings. The full right to take part in creditors’ meetings and to influence the choice of insolvency manager and the strategy of the procedure.
Challenged debtor transactions. Where there are grounds, applications to challenge asset stripping transactions that increase the bankruptcy estate.
A realistic recovery forecast. A sober assessment of what part of the debt can actually be recovered by the end of the bankruptcy procedure.
Related
Frequently asked questions
What is the time limit for admission to the register of creditors’ claims?+
As a rule, two months from the publication of notice of the introduction of the observation procedure. Missing the deadline significantly complicates the protection of your rights.
What if the deadline has already been missed?+
A claim can still be admitted later, but such creditors have fewer rights in the procedure and generally rank lower in priority of satisfaction.
Can assets that the debtor stripped out before bankruptcy be recovered?+
Yes, by challenging such transactions within the bankruptcy case, if it can be proved that the parties were affiliated or the price was understated.
Is it worth taking part at all if there is little chance of the debt being repaid in full?+
Even partial satisfaction of the claim, and control over the procedure through participation in creditors’ meetings, is often worth it. We assess this at the consultation.
What happens if the deadline for admission to the register is missed during the observation procedure?+
The claim can still be filed later, but it will rank as a claim outside the register and will be paid after all creditors in the main register. Where the debtor’s assets are insufficient, the real chance of receiving payment in that case falls sharply.
Does a claim’s ranking in the register affect the real chances of receiving payment?+
Yes, and quite significantly. Payments follow the order of priority set by law: first compensation for harm to life and health, then wage arrears, and only then ordinary contractual claims. Before we start work, we therefore assess your real chances of being paid, based on the priority class into which your particular claim will fall.