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Insolvency · Judicial liquidation

The bankruptcy procedure

When closure is the only way, the procedure is run correctly and transparently — maximizing the amounts recovered.

Bankruptcy is the procedure for liquidating the assets of an insolvent debtor in order to pay its creditors, governed by Romanian Law 85/2014. It is triggered when reorganization is not possible or the reorganization plan has failed.

The procedure involves taking inventory of and appraising the assets, realizing them through public auctions or direct negotiation, and distributing the proceeds to creditors in the order of priority set by law (secured claims, employee claims, budgetary claims, unsecured claims).

A well-managed bankruptcy maximizes recoveries for creditors and allows a dignified, orderly closure of the business — no parallel proceedings, no delaying challenges, no avoidable loss of value.

Why this procedure
  • Maximized distributions to creditors
  • A transparent, court-supervised procedure
  • Protection of directors against personal liability
  • Complete legal closure of the company
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Frequently asked questions
When does a company end up in bankruptcy?
Bankruptcy is opened when reorganization is not possible: the debtor did not declare its intention to reorganize, no plan was confirmed by the court, the confirmed plan failed, or the debtor enters the simplified procedure directly (for example, when it no longer holds assets or accounting records).
How long does the bankruptcy procedure take?
In practice, between 1 and 5 years, depending on the complexity of realizing the assets and any litigation. The simplified procedure, applicable to debtors without significant assets, can close in roughly 6–12 months.
What happens to the debtor’s assets in bankruptcy?
The judicial liquidator takes inventory of and appraises all assets, then realizes them through public auction or direct negotiation, according to the rules approved by the creditors. The proceeds are distributed to creditors in the order of priority set by articles 159 and 161 of Romanian Law 85/2014.