Bankruptcy Law

Serbia has legal provisions addressing bankruptcy and insolvency matters. However, it’s important to note that laws can change, and it’s advisable to consult the latest legal sources or seek professional advice for the most current information. Here is a general overview of bankruptcy law in Serbia:

Bankruptcy Proceedings:

Bankruptcy proceedings in Serbia are primarily regulated by the Law on Bankruptcy and Liquidation (Zakon o stečaju i likvidaciji). This law provides the legal framework for the initiation, conduct, and conclusion of bankruptcy proceedings.

Initiation of Bankruptcy:

Bankruptcy proceedings can be initiated by a debtor, a creditor, or the competent court. The court may declare bankruptcy if the debtor is insolvent and unable to pay its due obligations.

Insolvency Criteria:

The insolvency of a debtor is typically determined based on objective criteria, including the inability to settle matured financial obligations, inability to secure the performance of matured financial obligations, and persistent inability to settle financial obligations.

Bankruptcy Administrator:

Once bankruptcy proceedings are initiated, a bankruptcy administrator is appointed. The administrator takes over the management of the debtor's assets and works to satisfy the claims of creditors in accordance with the law.

Creditor Claims:

Creditors are required to file their claims with the bankruptcy administrator, providing necessary documentation to support their claims. The distribution of the debtor's assets among creditors is conducted based on a prescribed order of priority.

Restructuring:

In addition to bankruptcy proceedings, Serbian law provides mechanisms for the restructuring of companies facing financial difficulties. The Law on Financial Restructuring (Zakon o finansijskom restrukturiranju) allows for negotiations between debtors and creditors to reach a financial restructuring agreement.

Cross-Border Insolvency:

Serbia has provisions addressing cross-border insolvency matters. The Law on International Private Law and Procedure governs the recognition and enforcement of foreign bankruptcy decisions in Serbia.

Liquidation:

In cases where the debtor's assets are not sufficient to cover its liabilities, the bankruptcy court may decide on the liquidation of the debtor's assets. The proceeds from the liquidation are then distributed among the creditors according to the prescribed order.

Legal Representation:

Parties involved in bankruptcy proceedings, including debtors, creditors, and bankruptcy administrators, may have legal representation to navigate the legal complexities of the process.

Amendments and Updates:

Given that legal frameworks can change, it is crucial to check for any amendments or updates to bankruptcy laws in Serbia. Legal professionals with expertise in Serbian insolvency law can provide the most current and accurate advice.