Creditors will be able to contest the claims of other creditors
27.01.2011Company: Amcham
The Chember of Deputies is discussing an amendment to the Insolvency Act...
This should respond to the Constitutional Court ruling which abolished some provisions, and it should also strengthen the position of creditors in insolvency proceedings. The most important change is the re-introduction of the right of insolvency creditors to contest the claims of other insolvency creditors. The amendment, however, should not be a return to the status under the former Act on Bankruptcy and Settlement. The contesting creditors will have to meet many obligations which should prevent the abuse of this right. Another important change will be modification of the controversial provision on fines. A fine had to be paid by creditors who overrated their filed claims or the value of their security. Newly the fine should not be imposed automatically, but upon the decision of the insolvency administrator and the insolvency court.
