September 2023
The (In)sufficiency of Assets as a Reason for Acceptance/Rejection of the Bankruptcy Petition and the Provision of a Second Chance to Debtors
On 14.7.2022, a temporary injunction was issued prohibiting a company managing receivables from loans and credits from executing a payment order issued against our client company, for an amount of approximately 450,000 euros. The main reason raised in our application was also the invalidity of the transfer of the receivables from the bank to the special purpose company (Fund), on the grounds that it took place unlawfully during the operation of the mutual account (i.e. before the termination of the mutual account agreement). Bank claims entering into the mutual account agreement lose their self-existence with regard to satisfaction, judicial pursuit, transferability (assignment) and attachment. As soon as these claims are taken over by the mutual account, they are paralysed. In this case, the possibility of transferring (assigning) them is therefore forfeited, as there is no longer any power of individual disposal in respect of them.
An equally important reason was the improper termination, as well as the improper submission of the application for a payment order, while all the proposals to settle the alleged debt of the creditor company had been answered in the negative without any counter-proposal or reason for rejection.
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