"How long does it take?" is, without exception, one of the first questions both debtors and creditors ask. The honest answer: from a few months to several years, depending on the type of procedure and the complexity of the case. Here are the timelines, stage by stage, as they unfold in practice.

1. Opening the procedure: 1–3 months

From filing the petition (by the debtor or by a creditor) to the syndic judge's opening judgment, a few weeks usually pass. If the debtor challenges the creditor's petition, this phase can stretch by another 1–2 months.

Important for debtors: Romanian Law 85/2014 requires the insolvent debtor to file the petition within a maximum of 30 days from the onset of insolvency. Delay can trigger the directors' personal liability.

2. The observation period: 6–12 months

After the opening comes the observation period, in which the judicial administrator X-rays the company: takes inventory of the estate, verifies the filed claims, draws up the table of claims and the report on the causes of insolvency. This is also when the company's fate is decided: are there real prospects of recovery or not?

In practice, this stage takes between 6 months and a year — longer if there are challenges to the table of claims or disputes over the debtor's estate.

3. Judicial reorganization: a maximum of 3 years (+1)

If a reorganization plan is confirmed, it runs for a maximum of 3 years from confirmation, with a possible one-year extension. Throughout this time the company operates, pays its debts according to the payment schedule and reports periodically.

A successful reorganization therefore closes, from filing to exiting insolvency, in roughly 4–5 years. The company emerges with a restructured balance sheet and its business intact.

4. Bankruptcy: 1–5 years

If reorganization is not possible or fails, bankruptcy follows. The duration depends almost entirely on how fast the assets can be realized: easily marketable goods (vehicles, inventory) sell quickly; real estate and special assets may require repeated auctions. Litigation — annulment actions, directors' liability claims — can add entire years.

The simplified procedure, applicable to companies without significant assets or without accounting records, is much faster: in practice, 6–12 months to deregistration.

5. Personal insolvency: 1–5 years

For individuals (Romanian Law 151/2015), the repayment plan runs 3–5 years, while the asset liquidation procedure is usually shorter. At the end, the good-faith debtor can be discharged of the residual debts.

What factors lengthen the procedure?

  • Challenges to the table of claims — each challenge is heard separately;
  • Disputes over the estate — annulment actions against fraudulent transfers, recovery claims;
  • Hard-to-sell assets — atypical real estate, shareholdings, receivables to collect;
  • Passivity of the parties — disengaged creditors, uncooperative debtors.

The practical takeaway

Duration is not fate — it is largely the result of how well the case is prepared. Complete documentation, a strategy chosen correctly from the start (preventive vs. insolvency, reorganization vs. bankruptcy) and an engaged practitioner shorten the road significantly. If you are in this situation, talk to us before filing anything.

This article is for information purposes and does not constitute legal advice.