Watch out! The New Insolvency Register might make you lose your rights

Bankruptcy law comes with several fresh innovations aimed at streamlining the established procedures and reducing the administrative burdens. This is undoubtedly a step forward. However, these changes also have another side. The new and effective instruments increase the responsibility of the bankruptcy participants - including creditors - who are from now encouraged to proactively follow the course of the bankruptcy. Otherwise, they may lose their rights. 

The amendment introduces an Insolvency Register. Its purpose is to unify and digitise the insolvency procedures by keeping all information in one place. Publication of information in the Insolvency Register replaces the direct delivery of certain resolutions and other important documents to those concerned by the bankruptcy proceedings. Therefore, regular monitoring of the Insolvency Register is becoming a necessity. 

The Insolvency Register concerns also creditors who lodge their claims against a bankrupt debtor. The lodged claims, as well as all related information, are now registered in the Insolvency Register.  What does this mean in practice? Let's give you an example: If a creditor's claim was denied, the insolvency trustee was originally required to inform the creditor by delivering a separate written notification. The moment of delivery was crucial for the creditor's right to assert the denied claim in court. This is now a thing of the past. Under the new rules, denial of claims shall only be published in the Insolvency Register. Therefore, failure to regularly monitor the Insolvency Register can result in creditors losing their rights. 

The Insolvency Register aims to make the insolvency proceedings transparent. However, publishing information in this Register can have significant legal consequences. If your business partner is experiencing financial difficulties, monitoring of the Insolvency Register should become part of your daily business routine.

By Mgr. Renáta Konštiaková

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