Reorganisation plan as a enforceable document

Bankruptcy proceedings, within the meaning of the Law on Bankruptcy, shall be insolvency or reorganisation.

Insolvency shall mean creditor satisfaction through the sale of entire assets of the bankruptcy debtor, or the sale of the bankruptcy debtor as a legal entity.

Reorganisation shall mean creditor satisfaction accomplished under the adopted plan of reorganisation by redefining relations between the debtor and the creditor or the debtor’s legal status, or in another manner provided for in the plan.

The aim of the both ways of implementing bankruptcy shall be to ensure the most favourable collective settlement of bankruptcy creditors

According to provisions of the Law on Banckruptcy and the Law on Enforcement and Security Interest the adopted reorganisation plan in bankruptcy procedure, confirmed by a court ruling shall have the force of enforceable document. Continue reading Reorganisation plan as a enforceable document

Contract of Assumption of Debt

Contract of assumption of debt represents agreement between a debtor and a person assuming the debt in which the creditor has agreed to change the debtor of obligation by contract.

Assumption of debt is regulated by the provisions of Articles 446. to 450. of the Law on Contract and Torts and represents one of the ways provided for by the law of the debtor’s change and by the conclusion of the contract.

According to the provisions of the Law on Contract and Torts contract of assumption of debt is informal contract. However, if the debtor and the third party by the agreement transfer a debt to a third party, which has a source in a contract, which according to the law must be concluded in a certain form (eg, written or certification of the court), and an agreement of assumption of debt must be concluded in the same form.

Contract of assumption of debt have a legal effect regardless of the motive, which have directed the debtor and a third party – a person assuming the debt to conclude an contract by which a third party will assume the debt of the debtor to himself Continue reading Contract of Assumption of Debt