What are claims against the insolvency estate?
Within insolvency proceedings, there are different categories of claims, and one of the most important is claims against the insolvency estate.
These are claims that:
- arise after the declaration of insolvency, or
- are of such an essential nature that the law grants them absolute priority for payment.
They have priority even over secured claims.
They do not need to be included in the list of creditors and are paid at maturity, i.e., as they arise.
Understanding them is essential, for both creditors and the debtor.
Types of claims against the insolvency estate
The Insolvency Law (art. 242 TRLC) provides a detailed list, but here is a summary of the most common ones:
1. Procedural expenses and costs
Includes:
- fees of the insolvency administrator,
- court costs,
- official publications,
- necessary interventions of the lawyer or court representative when mandatory.
These expenses enable the insolvency proceedings to function, hence their priority.
2. Employment claims arising after the declaration of insolvency
Salaries accrued after the insolvency proceedings are claims against the estate.
The logic is simple: if the activity continues, those who sustain it must be paid.
3. Payments necessary to maintain the debtor’s activity
For example:
- essential suppliers,
- utilities,
- rent necessary for operations,
- contracts essential for continuing the business activity.
4. Maintenance obligations
If the debtor is an individual and requires maintenance for themselves or their family (subject to a court order).
5. Tax and Social Security obligations arising after the insolvency
Any tax or contribution arising after the insolvency declaration order is classified as a claim against the estate.
Why are they so important?
The priority of payment means that:
- they are paid before all others,
- they reduce the available estate assets for the remaining creditors,
- they can condition the continuity of the activity,
- they influence the decision to open liquidation.
If there is not enough money to cover them, the insolvency may enter a state of estate insufficiency, which accelerates liquidation.
For creditors, knowing whether their claim falls into this category can make the difference between getting paid quickly or never getting paid.
How are claims against the insolvency estate paid?
Unlike insolvency claims, which await the final distribution, claims against the estate:
- are paid at their maturity date,
- require immediate liquidity,
- oblige the debtor (or insolvency administrator) to manage cash flow precisely.
If there is not enough money, the law establishes an internal order of priority, prioritizing:
- post-insolvency employment claims,
- maintenance for the debtor,
- essential expenses for continuing the activity,
- the rest of the claims against the estate.
What happens if they cannot be paid?
This situation is called insufficiency of the active estate.
Consequences:
- it is communicated to the court,
- a strict order of payments is established,
- the liquidation phase may be opened,
- insolvency creditors may be left with no real chance of recovery.
When even the claims against the estate cannot be met, the company is in a critical financial situation.
Practical example
A company declared insolvent continues to operate. It needs to:
- pay employee salaries,
- pay for electricity to maintain activity,
- pay the insolvency administrator.
If the company receives payment of €10,000 for an invoice, that money is not distributed to ordinary creditors, but is first used for these claims against the estate.
Frequently Asked Questions (FAQ)
Can my invoice be a claim against the estate?
Only if it arose after the declaration of insolvency and is essential for continuing the activity.
What if I am a worker and I am owed back wages?
Salaries prior to the insolvency are not claims against the estate, except for the last 30 days prior; they are usually classified as privileged claims.
What happens if the insolvency administrator does not recognize my claim as one against the estate?
You can challenge the decision in court.
Professional CTA
Do you not know if your claim can be considered a claim against the insolvency estate?
I can help you to:
- analyze your situation,
- claim the correct classification,
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- and maximize your chances of recovery.
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