NOVELTIES INTRODUCED UNDER LAW. 85/2014 REGARDING THE INSOLVENCY PREVENTION PROCEEDINGS AND INSOLVENCY
NOVELTIES INTRODUCED UNDER LAW. 85/2014 REGARDING THE INSOLVENCY PREVENTION PROCEEDINGS AND INSOLVENCY

Summary/Abstract: The insolvency code was declared unconstitutional last autumn and therefore, there is a new insolvency law, Law 85/2014 regarding the insolvency prevention proceedings and insolvency, which was published in the Official Gazette, Part I, no.466 of June 25th, 2014 and came into force on June 28th, 2014. The new law continues, to a large extent, on the same structure and content as Emergency Ordinance no 91/2013 on the insolvency prevention proceedings and insolvency, which was declared unconstitutional, too, on October 29th, 2013. The regulation contains a series of legislative novelties and it is, as well, an answer to a lot of dysfunctions that are met in practice, in approximately seven years of implementing Law 85/2006 on insolvency proceeding. On the other hand, the legislator still has no answers for a lot of the aspects which were approached by the practitioners.The legislative changes brought by the new Law 85/2014, legally shape a part of the solutions that can be found in the procedure of the old Law 85/2006 of doctrine and practice.These legislative changes are very much to the point especially that, in the past, the insolvency law became a tool both in the hands of creditors to force their debtors to pay the debts, although those debtors were not in insolvency, and also in the hands of debtors, for whom this procedure served as a lever to avoid paying their debts to creditors.One aspect, which will hereafter be omitted by the new legislative regulation, is that of personal bankruptcy. Law 85/2014 applies to professionals, such as former commercial companies, the current companies to which the authorized natural persons are added. Nevertheless, Law 85/2014 applies neither to a person who practices a liberal profession nor to a person for whom special dispositions regarding insolvency are mentioned.It seems that a bill, which is on a public debate in the Senate, offers the natural persons the possibility to declare insolvent when they cannot pay their debts to creditors.This paper aims to analyse the main novelties which are brought by Law 85/2014 in terms of the solutions that were found by the legislator to the issues of the old insolvency law.

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