Insolvency law

In the insolvency proceedings of a company , a creditor filed a claim (insolvency incident) to have a credit against the estate recognized. The insolvency administration responded to that claim and, the following month, in April 2015, notified the court of the insufficiency of active mass as provided for in the Insolvency Act art. 176 bis; there was a treasury of about 81, 000 euros, but the credits against the estate exceeded one million.

Later, a appeal judgment recognized a credit against the estate of 848, 000 euros to that creditor. Nevertheless, the insolvency administration did not reflect it in the quarterly reports and kept paying other credits against the estate, including their fees for liquidation generated after the notification, arguing that they were "essential expenses" to conclude the liquidation. Finally, it submitted the accounts settlement and requested the conclusion of the insolvency proceedings.

The creditor objected , alleging that the legal order of payments had been altered and requested that these accounts not be approved. The court approved them, but the Provincial Court revoked and understood that the insufficiency communication had been "reactive" (presented in response to the creditor's claim), so the order of payments under art. 176 bis. 2 could not be opposed; it disapproved the accounts and disqualified the natural person insolvency administrator for six months. The Supreme Court confirms this line, normally, after the

insufficiency communication , the outstanding mass credits are paid this line, usually, after the insufficiency communication , outstanding credits against the estate are paid following that order ; but there is an exception when communication is used as a response to a creditor's claim. In that case, payments made (e. g., "essential" fees) cannot prevail over the claimed credit, and also those fees can only be treated as pre-deductible if strictly essential actions are identified and submitted to judicial control with the creditors' hearing. If you find yourself in a situation similar to the one described, our professionals can provide you with the necessary assistance and take any actions that may be relevant.

If you find yourself in a situation similar to the one described, our professionals can provide you with timely assistance and take whatever actions may be relevant.