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Bankruptcy Law

Bankruptcy Law


We will find the best possible solution in the worst possible situation.


Bankruptcy is not the end of the road: was the fatherly message, welcoming the website users of the former Bankruptcy Management Department under the Ministry of Economy (from the 1st of January, 2016: The Authority of Audit, Accounting, Property Valuation and Insolvency Management following the merger of three finance ministries of RL). We would like to emphasize that the above statement stands true, no matter if it means the bankruptcy of your debtor, your company or your own bankruptcy. Believe us when we say that we understand what we are saying because the attorneys at the Law Firm have been working on bankruptcy cases for a long time: representing creditors, initiating bankruptcy proceedings and administrating bankruptcy procedures in person.


On 25.06.2012 the Managing attorney of the Law Firm dr. Oleg Drobitko has been granted the right to oversee and administrate bankruptcy procedures of legal and natural persons.


Heads of companies and other establishments are advised to take note that in accordance with the article 8(1) of the Law on Enterprise Bankruptcy of RL: “In the event of circumstances set forth by the law, the Head of the company or other persons within the area of their competence are obliged to bring forth a claim to the court on initiating the bankruptcy proceedings” and that in the event of failure to perform the above, it shall be justified as grounds to talk about the liability of the Head of the company. It is also worth citing the item 5 of the above article: “Head of the company or other persons within the area of their competence must settle the damages that the company and (or) company creditors incurred due to the failure of the Head of the company or other persons within the area of their competence to bring forth or being late to bring forth a claim on initiating the bankruptcy proceedings towards the court in the presence of the circumstances set forth in the item 1 of the above mentioned article.” Head of the company or other persons within the area of their competence are jointly and severally liable towards the creditors and in accordance with the item 6 of the above article: “In case of Failure to bring forth or being late to bring forth the claim on initiating the bankruptcy proceedings to court, the Head of the company or other persons within the area of their competence shall be liable in the respect of procedures established within the Code of Administrative Offences.” (Revision of Law on Enterprise Bankruptcy of RL from 01.05.2016 to 01.01.2017). It is clear that the better course of action for the Head of the company or shareholders is to seek legal help on the issues on initiating the bankruptcy proceedings of the company, instead of seeking representation of an attorney in court proceedings on the settlement of damages where you are the defendant at a later date.


Following the adoption of the Law on Bankruptcy of Natural Persons of the RL by the Seimas of the Republic of Lithuania, the right to finally declare bankruptcy has been granted to natural persons as well. We can state with confidence that bankruptcy procedures are grounds for an honest person to be clear of all debts and start anew, except free from the burden of debts. If you are constantly harassed by debt collectors or you are subject to forced foreclosure procedures, we would advise you to think about the possibility of declaring bankruptcy as a natural person. Most of the times, in the end, following the constant postponing of the said decision, you still come to the above conclusion. In the event of unbearable debts, we advise you to seek legal consultation on declaring bankruptcy procedures as a natural person from a reliable and competent attorney.


The Law Firm InRight / Drobitko & Partners represent creditors, as well as defend their interests in bankruptcy proceedings. Not all debts are hopeless, in many instances, there is a possibility to recover at least a part of the debt, however in order to do so you must take timely actions. If you have debtors that are in danger of insolvency, we advise you to seek legal consultation of a competent attorney.


Law Firm InRight / Drobitko & Partners offers their clients the following legal services within the field of bankruptcy law:


• Legal consultations;
• Drafting and preparation of procedural documents;
• Administration of bankruptcy proceedings of legal entities;
• Administration of bankruptcy proceedings of natural persons;
• Representation of creditors in bankruptcy proceedings.


The above list of services is not final. For more information see: Bankruptcy administration.

 

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