A new draft law on bankruptcy, which is expected to put an end to one of the main concerns and debated issues regarding insolvency procedures, has been sent to the Albanian Parliament for . The bill drafted by the Albanian government that is expected to improve the business climate foresees the creation of the Bankruptcy Court. It will be part of district court’s structure. The court will have additional competences concerning all the bankruptcy procedures that include seizure of an insolvent debtor assets and the appointment of a temporary administrator for the company that is in foreclosure proceedings.
The draft law defines strict time limits for submitting the request for starting bankruptcy proceedings, the debtors claim and the start of judicial sessions. All of these has a time limit of one and a half months.
Another novelty from the draft low is the suggestion for making the Prosecution, the High State Audit and other supervising institutions part of the process.
The role of these subjects will be to verify all the documents, court verdicts, and money transfers of the insolvent debtor for a period of three years before bankruptcy. This will aim at avoiding abuses or fraud regarding bankruptcy proceedings. The lawmakers will discuss the draft law and later send it to the Parliament for a final vote.
News Source/ Photo Credit: ATA
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