The Italian Bankruptcy Law
governs the insolvency procedures
for companies that are facing financial problems and can no longer continue their business activities. Pre-bankruptcy procedures
as well as debt restructuring actions are possible in the country and the law aims to provide adequate solutions for companies that are going to a restructuring phase.
Professional help is very important during all of the stages of bankruptcy
and the experts at our law firm in Italy
can help you deal with creditors or debt recovery.
Bankrupt companies in Italy
are considered insolvent when they cannot meet their financial obligations towards their creditors. The bankruptcy proceedings
are initiated after the company has filed for insolvency and according to law, debtors have two options to deal with financial problems
- pre-insolvency proceedings: a settlement between the debtor and the creditor in which the first must give up some of the assets but it is given more time to make the necessary payments and can continue its commercial activity;
- settlement with the creditors: a plan for restructuring debts examined and allowed by court.
The company or the creditors can file for bankruptcy at the Registrar of Companies.
Bankruptcy proceedings in Italy
The pre-insolvency proceedings
as well as the settlements with the creditors are two ways for companies to manage any financial difficulties. The Bankruptcy Law
was amended through a Decree that allows for more flexibility and improved solutions in debt situations
According to law, companies that choose to conclude a settlement with the creditors (concordato preventivo) must be ready to offer at least 20% of the unsecured claims before the agreement is submitted to an Italian court for approval. In any creditor arrangement, should the debtor delay the due payment, the court is promptly informed of this action. The court can appoint a judicial administrator to help manage the situation.