Clear answers about insolvency.

Insolvency is the condition of a debtor's estate characterised by insufficient available funds to meet certain, liquid and due debts. Under Law no. 85/2014, the debtor is required to file an application to open proceedings within a maximum of 30 days of the onset of insolvency. The minimum threshold for claims is RON 50,000.

Judicial reorganization saves the company through a restructuring plan approved by creditors — the business continues under supervision. Bankruptcy entails the liquidation of all assets to pay debts and the deregistration of the company from official registers. Reorganization is preferable when the company is economically viable.

The observation period lasts a maximum of 12 months. Judicial reorganization may last up to 3 years from the confirmation of the plan. Bankruptcy varies between 1 and 5 years depending on the complexity of the case, the number of assets to be disposed of and creditor challenges.

Yes, under Law no. 151/2015 on personal insolvency proceedings. You may access the procedure if you are acting in good faith, have debts of at least 15 minimum gross wages and are unable to make payments. The procedure may include a repayment plan, asset liquidation or discharge of residual debts.

You must have acted in good faith, must not have been convicted of economic offences in the past 5 years, must not have benefited from a similar procedure in the past 5 years, and must have total debts of at least 15 minimum gross wages. You must also demonstrate that you cannot cover your debts from your current income.

The law protects assets necessary for daily living: the primary residence (under certain conditions), personal-use items, tools of the trade and minimum subsistence income. Assets of significant value exceeding basic needs may be included in the liquidation procedure to pay creditors.

You must file an application for admission of your claim to the creditors' register within the deadline set by the syndic judge (generally 45 days from the opening of proceedings). The claim must be accompanied by supporting documents. Once verified, the claim is included in the preliminary and subsequently the final schedule of claims.

The creditors' register is the totality of verified and accepted claims within the insolvency proceedings. You register by filing an admission application with the tribunal handling the case within the statutory deadline. The application must state the amount of the claim, the legal basis, and be accompanied by evidence (invoices, contracts, enforcement orders).

Essential deadlines: 45 days to file claim applications (from the opening of proceedings), 30 days for publication of the preliminary schedule, 7 days to challenge the schedule, 30 days for publication of the final schedule. Meeting deadlines is critical — claims filed late are subject to an inferior treatment regime.