Insolvency administration Latvia
Insolvency proceeding in Latvia
Insolvency proceeding in Latvia is based on the Insolvency Law. Insolvency Law refers to the bankruptcy proceedings of legal persons and individuals. The types of proceedings available in Latvia are corporate insolvency proceedings serving as liquidation; two types of restructuring – corporate restructuring proceedings and corporate out-of-court restructuring proceedings; private bankruptcy proceedings, providing an opportunity for a fresh start for private individuals. Restructuring proceedings and a restructuring plan are inseparable things, which must be approved by the majority of creditors and accepted by the court. These insolvency proceedings in Latvia lasts two years. However, with creditors’ approval this term can be extended for an additional two years.
Corporate insolvency proceedings can be initiated by the debtor and a creditor or creditors. Legal assistant in insolvency Latvia (mainly by insolvency administrator) have a duty to assess the assets of the debtor, sell them, bring actions for the recovery of the debtor’s assets and recovery of damages from the debtor’s management, distribute the proceeds among creditors and also liquidate the debtor.
As corporate restructuring is debtor-in-possession type proceedings, then an insolvency administration Latvia has only a supervisory role. Insolvency administrator tasks include providing an opinion on a restructuring plan, exercising general supervision over the proceedings and in case the debtor is not following the restructuring plan administrator will need to fill a motion regarding termination of restructuring proceedings with the court or other obstacles for restructuring proceedings exist.
The aim of personal bankruptcy is to provide a fresh start possibility for an over indebted individual. In this type of proceedings an insolvency administration Latvia is entrusted with selling debtor’s assets and distributing the proceeds among creditors.
Insolvency administration in Latvia
Insolvency proceeding in Latvia are operated under an insolvency administrator.
And yes – there is only one type of insolvency office holder in Latvia – an insolvency proceedings administrator. An administrator of insolvency proceedings is a natural person who has acquired a certificate of an administrator of insolvency proceedings. The rights and duties of an administrator are specified in the law. Administrators activities in insolvency proceedings are monitored by Insolvency Administration. Insolvency administration in Latvia by the insolvency administrator is appointed by the court.
Creditors claims against a debtor shall be submitted to the administrator within one month from the day when the entry is made in the register regarding the proclamation of the insolvency proceedings of the debtor.
Insolvency administration in Latvia by an insolvency administrator which is person who collects debtor’s claims, identifies the debtor’s property and liabilities, prepares its sales plan and arranges the sale of assets in auctions.
Legal assistant in insolvency processes
If a business is in financial difficulties, it is essential to find help or search for legal assistant in insolvency Latvia.
Insolvency proceeding in Latvia is procedure which allow the debtor to get rid of all obligations and could even say that it is an opportunity to start a new life. The insolvency process is a legal measure to restore the solvency of a legal or natural person. To be able to start insolvency the entrepreneur must get information about all the criteria and limitations with whom he can face.
It is easy to fulfill different obligations only when a natural person has regular income and he is convinced that nothing will change until the end of the commitment. However, life is unpredictable and often the fulfillment of obligations is not only difficult to execute, but even impossible. In this case, the individual may decide in favor of the commencement of the insolvency proceedings in Latvia.
Legal asistance in insolvency proceeding by Rasa and Ešenvalds
Law Office Rasa and Ešenvalds created a team of professional lawyers who are able to provide the client’s interests representation in courts of all instances and arbitration. Jānis Ešenvalds is attorney and a certified insolvency administrator who has accumulated experience in complex administrative and civil legal proceedings in the courts of all instances. Insolvency administration Latvia is one of the services offered by office representatives. Although insolvency administrator Janis Ešenvalds emphasizes that the tendency to submit an insolvency application is even, however, the problem of insolvency is urgent for people. Companies may consider the idea of using the legal protection process (LPP) rather than immediately declaring insolvency. In this case, the company’s representatives must be absolutely sure that they will be able to restore the firm’s insolvency. A legal protection process can be initiated by a commercial company that has caused temporary financial difficulties or it can already be foreseen that such will occur in the near future. Using LPP, the company has the opportunity to restructure its debt to restore the company’s ability to meet its obligations. Commercial companies also have the opportunity to use the Out-of-Court Protection Process (OCPP).