In situations where a natural or legal person is in financial difficulties and is no longer able to settle his or her obligations with creditors, procedures are provided for allowing for the legal settlement of these financial difficulties in the recovery of solvency or the cessation of economic activity. . It is possible to address financial difficulties without involving out-of-court restructuring of debts and judicial proceedings, the legal protection process, the insolvency process of a legal person and the insolvency proceedings of a natural person.
Before an insolvency proceeding is brought before the court, the economic operator (debtor) and creditors in financial difficulty have the possibility to carry out a mutually harmonised debt restructuring or out-of-court debt restructuring, which will result in both parties seeking an agreement to change the conditions for repayment of debt by allowing the debtor to continue his business. .
The legal protection process (TAP) is a set of measures of a legal nature aimed at restoring the debtor's ability to settle his or her obligations if the debtor is in financial trouble or is deemed to have reached them. . The out-of-court legal protection process (ADR) can be used by a commercial company with good prospects for reaching an agreement with a majority of creditors and there is no threat that individual creditors, with individual recourse to a commercial company, could significantly threaten the development, harmonisation and further implementation of the legal protection plan. U. If an agreement has been reached through negotiations with a majority of creditors, the approval of the plan of out-of-court redress measures in the court allows it to be made binding on minority creditors as well as to obtain the protection provided for in the legal protection process.
The insolvency proceedings of a legal person are a set of measures of a legal nature in which creditors' claims are covered from the debtor's property in order to facilitate the fulfilment of the debtor's obligations.
The insolvency proceedings of a natural person are a set of measures of a legal nature designed to satisfy, as far as possible, creditors' claims on the debtor's property and to enable a debtor whose assets and income are insufficient to cover all liabilities to be released from outstanding obligations and to restore solvency.
Principles of legal protection proceedings, insolvency proceedings of a legal person and insolvency proceedings of a natural person:
principle of the preservation of rights: the process respects the rights of creditors acquired prior to the process. . The restriction on the rights of the creditor established in the process cannot be greater than is necessary to achieve the objective of the process in question;
the principle of speed of circulation – the task of the process is to maintain the speed of commercial justice. . The sale of the debtor's property must be carried out in order to ensure its return to commercial justice as soon as possible;
the principle of transparency: in order to ensure reliability, information on the process should be available to all parties involved in the process, thereby contributing to the respect of their interests and the achievement of the objectives of the process. . The exception is information whose unfettered disclosure could harm the legitimate interests of the debtor or creditors;
- principle of equal treatment of creditors: creditors are given equal opportunities to participate in the proceedings and to obtain the satisfaction of their claims in accordance with the obligations they established with the debtor prior to the initiation of the proceedings;
- the principle of prohibition of arbitrariness: the creditor and the debtor must not carry out individual activities which harm the interests of the pool of creditors;
- the principle of fulfilling the obligations: measures applicable within the framework of the proceedings allowing the debtor to discharge the obligations to a higher extent;
- the principle of effectiveness of the process: measures to be applied within the framework of the process, which allows the least resource consumption to achieve the most complete objective of the process;
- principle of good faith: the parties involved in the proceedings must exercise their rights and fulfil their obligations in good faith. The debtor and the creditor must not use the process to unjustly benefit.