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Estonia · Law · SE

575

The Law on Insolvency of a Natural Person

avaldatud riigiteatajasEstonia· Riigikogu· ET

Introduced

4 April 2022

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AVALDATUD_RIIGITEATAJAS

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Discovery layer

Source updated

1 June 2022

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Summary

The purpose of the bill is to make the insolvency proceedings of natural persons faster, more efficient and less expensive. For this purpose, a new comprehensive law will be established, which will regulate the initiation of insolvency proceedings for natural persons, the restructuring of debts and the procedure for discharging obligations. The previously valid Debt Restructuring and Debt Protection Act is repealed. Bankruptcy proceedings are still governed by the Bankruptcy Act. According to the bill Insolvency proceedings of a natural person will be initiated in the future with a declaration of insolvency, which may grow into bankruptcy proceedings, discharge of obligations and debt restructuring proceedings. The debtor counseling system will also change. From now on, the trustee will advise and assist the debtor from start to finish. You can become a trusted person after passing the relevant exam. In a specific procedure, the trustee is appointed by the court, Bailiffs and Bankruptcy Trustees From the list of trustees kept at the chamber. In addition to issues of insolvency of natural persons, the appointment of a reorganization advisor in the reorganization proceedings of legal entities is also regulated, and bankruptcy trustees are given the right to open a professional payment account during bankruptcy proceedings. According to the current procedure, the trustee may use only the debtor's accounts for settlement, but in practice this has caused a number of problems. For example, it is common to that the debtor's account is closed upon declaration of bankruptcy, but no new account is opened. To overcome this and several other problems, the manager will be able to open a procedural account in the future.

Machine translation from Estonian. The official text remains authoritative.

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