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Monitoring the Insolvency Register

The adoption of the Insolvency Act, No. 182/2006, which came into force on 1st January 2008 means a requirement for the business community to monitor the insolvency register, since the date of insertion of an event in the register starts the clock ticking for creditors on some not insignificant time limits. 

The insolvency court does not send notifications to domestic creditors; it is entirely up to the creditor to key an eye on whether insolvency proceedings have begun in any case which may affect him. The most important of there is the time limit for submitting a creditor's claim. Any failure to meet this deadline cannot remedied, nor can the deadline be extended. For creditors this kind of formal, but irremediable failure can have catastrophic consequences. In most costs this is legal unenforceability of a receivable, but in addition any unclaimed unrecovered receivable cannot be put into taxable costs by creditor, and there is little scope for trading it on. 

Whom to monitor?

Customers.  No businessman wants to be in the position of supplying goods or services without any hope of being paid. Once insolvency proceedings have begun against your customer it is not legally possible to recover your receivables in any other manner than through the insolvency administrator. Reduce the risk of unrecoverable and non tax-deductible receivables. 

Suppliers.  Even when you hold only liabilities, information about the start of insolvency proceedings is important for you, since if you meet your liability to the debtor after the start of insolvency proceedings, even though under the provisional measures you should have paid the provisional administrator, and the money is not included in the assets of the business, you have not in fact met your liability. There is the risk that you will be asked to meet the liability once more.

Employees.  An employee facing insolvency proceeds may represent a risk, particularly in respect of possible claims for damages caused to his employer.

 

Intras Consulting offers daily monitoring of the insolvency register for all organisations and individuals you decide on, and will determine immediately the start of or any change to insolvency proceedings and will provide effective help when you are involved in insolvency proceedings. Monitoring is done on a crowns per organisation per year basis. But it can save you a considerable amout of money. 

 

 

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