Mar 16

Legal protection of the state, municipalities and employees by inaction of the trustee in bankruptcy proceedings

  By virtue of the Commercial Act provisions, in order to constitute him/-her/-itself as creditor in open bankruptcy proceedings a person or an entity has to be included in the so called list of claimed receivables. This list is prepared by the trustee in bankruptcy proceedings and requires the bankruptcy court approval. Receivables, included in that list are as follows:

 - receivables which have been claimed by the creditors within one month term as from the entry in the Commercial Registry of the court ruling for the initiation of the bankruptcy proceedings;

-receivables which by virtue of the law the bankruptcy proceedings trustee ex officio includes in the receivables list;

   Receivables bound to be ex officio included in the receivables list include receivables of employees, deriving from a labour agreement with the bankruptcy debtor and the public receivables of the state and municipalities, established by an act in force.

  What, however, would be the legal protection of the employees, state and municipalities by the bankruptcy proceedings trustee inaction, i.e. if he/ she fails to fulfill his/ her duty to include their receivables in the receivables list? Given a situation like this, employees, state and municipalities would end up being deprived of their right to object to the trustee list, as well as to subsequently lodge the declaratory claims under Art. 694 of the Commercial Act, because their receivables would not have actually received the trustee denial for inclusion.

  The only possible legal advice a lawyer could give his/ her client in the above described trustee inaction created situation, is that the employees, state and municipalities should claim their receivables within the one month term as from the entry in the Commercial Registry of the court ruling for the initiation of the bankruptcy proceedings. Thus, if the trustee inaction has been the result of an omission, he/ she shall include the claimed receivables in the list, while in case he/she has deliberately not included the ex officio receivables, the employees, state and municipalities would this way „secure” themselves with the trustee denial to include their receivables, which would later act as legal grounds for objecting to the trustee list or lodging the declaratory claims under Art. 694 of the Commercial Act.