Some considerations regarding the amendments to the Law no. 85/2014 on insolvency prevention and insolvency procedures through GEO no. 88/2018
Some considerations regarding the amendments to the Law no. 85/2014 on insolvency prevention and insolvency procedures through GEO no. 88/2018

Summary/Abstract: The Emergency Ordinance for amending and supplementing certain normative acts in the field of insolvency and other normative acts entered into force on October 2, 2018, the date from which its provisions take effect.The main stated purpose, which led to the adoption of the ordinance, was determined by the need to take measures designed to avoid damaging the competitive environment, by using insolvency proceedings abusively by some debtors, who were thus trying to evade the payment of the amounts owed to the general consolidated budget.Adopting GEO no. 88/2018 has triggered a whole series of criticisms, so that at present it is considered unconstitutional by a large part of the insolvency specialists.Among the "charges" brought to the ordinance are the fact that it does not comply with the provisions of art. 115 paragraph (4) of the Romanian Constitution, it does not take into account the principles of UNCITRAL, which establish a fair and unified equal treatment within the insolvency procedure, its amendments favor the fiscal creditor, it does not have the attribute of clarity and quality of the normative act, the legislator showing inconsistency regarding the terms used, and that finally creates the possibility of a continuous state of insolvency, with the increase of the debts and the accessories due.Last but not least, the fact that another attempt to change the insolvency law through GEO no. 91/2013 was declared unconstitutional by the Decision of the Constitutional Court no. 447 of October 29, 2013.

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