RIGA — It will be faster, but more costly to bankrupt a company in Latvia if the Saiema approves a bill supported by the International Monetary Fund.
Bankruptcy is a major issue in Latvia given that the country is going through hard economic times. The public sector was bailed out by a €7.5 billion euro loan last year, but the private sector is still suffering.
Under the new bill, it will be [private_supervisor]more expensive to initiate bankruptcy proceedings, but it will be a more streamlined process, which would hopefully make the process more transparent. It will also be possible to remove individual debts under the new law.
The time that creditors would have to claim would be reduced from three to one month.
Currently, the law of natural persons in case of insolvency does not allow excluding settlement options in cases between creditors and debtors, but the bill allows a specific period after the termination of the solvency for the process of debt relief.
A number of possible improvements incorporated in the legal and personal bankruptcy process and the remedies process are in the bill.
In Latvia, operators take the business risk of duty, which is designed to cover the costs of the insolvency proceedings and employee entitlements in insolvency cases. [/private_supervisor] [private_subscription 1 month]more expensive to initiate bankruptcy proceedings, but it will be a more streamlined process, which would hopefully make the process more transparent. It will also be possible to remove individual debts under the new law.
The time that creditors would have to claim would be reduced from three to one month.
Currently, the law of natural persons in case of insolvency does not allow excluding settlement options in cases between creditors and debtors, but the bill allows a specific period after the termination of the solvency for the process of debt relief.
A number of possible improvements incorporated in the legal and personal bankruptcy process and the remedies process are in the bill.
In Latvia, operators take the business risk of duty, which is designed to cover the costs of the insolvency proceedings and employee entitlements in insolvency cases. [/private_subscription 1 month] [private_subscription 4 months]more expensive to initiate bankruptcy proceedings, but it will be a more streamlined process, which would hopefully make the process more transparent. It will also be possible to remove individual debts under the new law.
The time that creditors would have to claim would be reduced from three to one month.
Currently, the law of natural persons in case of insolvency does not allow excluding settlement options in cases between creditors and debtors, but the bill allows a specific period after the termination of the solvency for the process of debt relief.
A number of possible improvements incorporated in the legal and personal bankruptcy process and the remedies process are in the bill.
In Latvia, operators take the business risk of duty, which is designed to cover the costs of the insolvency proceedings and employee entitlements in insolvency cases. [/private_subscription 4 months] [private_subscription 1 year]more expensive to initiate bankruptcy proceedings, but it will be a more streamlined process, which would hopefully make the process more transparent. It will also be possible to remove individual debts under the new law.
The time that creditors would have to claim would be reduced from three to one month.
Currently, the law of natural persons in case of insolvency does not allow excluding settlement options in cases between creditors and debtors, but the bill allows a specific period after the termination of the solvency for the process of debt relief.
A number of possible improvements incorporated in the legal and personal bankruptcy process and the remedies process are in the bill.
In Latvia, operators take the business risk of duty, which is designed to cover the costs of the insolvency proceedings and employee entitlements in insolvency cases. [/private_subscription 1 year]
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