What can a creditor do in insolvency proceedings?
When a company or individual with whom you have an economic relationship enters insolvency proceedings, it is normal to feel uncertain: Will I lose my money? What steps should I take? Can I claim anything?
The good news is that the law grants very specific rights to the creditor, but it is essential to act quickly and correctly.
Here is a clear and practical guide to know what to do from the very beginning.
Notifying your claim: the most important step
When a debtor enters insolvency, creditors can no longer claim payment through individual channels (lawsuits, executions, seizures).
From that moment on, everything must go through the insolvency proceedings.
The first step is to submit the claim notification to the insolvency administrator within the legal deadline, usually one month from the publication of the court order in the official state gazette or from when you receive a notification.
Your notification must include:
- creditor’s details,
- exact amount of the claim,
- description of the debt (invoice, loan, rent…),
- supporting documentation.
Warning:
If you do not notify your claim on time, it may be classified as subordinated, which means you would be the last to be paid (or possibly never).
Review the list of creditors: don’t take anything for granted
The insolvency administrator prepares a provisional list of creditors, indicating:
- whether they recognize your claim,
- for what amount,
- and with what classification (secured, ordinary, subordinated).
As a creditor, you must review this list when it is published and verify that:
- your claim is included,
- the amount is correct,
- it is correctly classified.
If you disagree, you can challenge the list. This step is crucial because the classification determines the order of payment.
Types of claims in insolvency: why your classification matters
The law distinguishes several categories:
Claims against the insolvency estate
They are paid before all others and at maturity. Example: post-insolvency wages, essential expenses.
Secured claims
They can be special (mortgage, pledge) or general (part of wages, certain public claims).
Ordinary claims
The majority of commercial invoices or contractual debts.
Subordinated claims
Last to be paid: interest, fines, claims notified out of time, claims between related parties.
Your strategy as a creditor largely depends on this classification.
Rights of the creditor within the insolvency proceedings
The creditor is not a mere spectator: they have rights that can make the difference between getting something or getting nothing.
These are the most relevant:
Right to be informed
About the status of the proceedings, administrator’s reports, and phases of the procedure.
Right to challenge
The provisional list of creditors or classification decisions.
Right to vote
At the creditors’ meeting if a composition proposal is presented.
Right to request liquidation
If it is observed that the company cannot continue.
Right to promote actions
In case of suspicion of fraud, concealment of assets, or disloyal administration.
And if I am an employee, what happens to my wages?
The worker is also a creditor, but with special protection:
- wages from the last 30 days prior to the insolvency are claims against the estate (they get paid before anyone else),
- the rest of the wages and severance pay are usually secured claims.
Additionally, the Wage Guarantee Fund (FOGASA) may intervene to pay part of the wages or compensation within its legal limits.
What if I suspect the debtor is hiding assets?
You can:
- request the appointment of an insolvency administrator (if there isn’t one),
- promote clawback actions,
- report possible fraudulent activities.
In insolvency proceedings without assets, creditors can even assume the cost of the administrator if they believe there are hidden assets or liability to be investigated.
Frequently Asked Questions (FAQ)
If I don’t notify my claim on time, do I lose it?
You don’t lose it, but it will be subordinated and you probably won’t get paid.
Can I continue to claim on my own?
No. From the declaration of insolvency, all claims must be made within the proceedings.
When am I likely to get paid?
It depends on the available assets, the classification of your claim, and whether there is liquidation.
Professional CTA
Are you a creditor and don’t know how to claim your credit within the insolvency proceedings?
As a lawyer specialized in insolvency law, I help you to:
- notify your claim on time,
- defend your classification,
- challenge decisions made by the insolvency administrator,
- and maximize your real chances of recovery.
Write to me and I will review your case.