• Careers
  • Documents
  • Online free advice
  • English
    • Italiano
    • Español
Damiani & DamianiDamiani & DamianiDamiani & DamianiDamiani & Damiani
  • Home
  • The Firm
  • Practice Areas
    • Litigation&Disputes
    • Corporate&Commercial
    • Debt Restructuring
    • Patent&Trademark IT
    • Compliance GDPR
    • Property and Real Estate Management
    • Banking&Finance
    • Consumer Law
    • Criminal Law
    • Immigration Citizenship
  • People
  • Network
  • Contact Us
  • Legal News
    • Video News
  • English
    • Italiano
    • Español

Legal News

New procedure for italian bankruptcy debt collection

New procedure for italian bankruptcy debt collection

By | Featured post, International credit recovery |

New procedure italian bankruptcy debt collection

The new law on bankruptcy in Italy aims to prevent companies from becoming insolvent. Before reaching the point of an irreversible corporate crisis, the new law provides for out-of-court instruments to facilitate mediation between debtors and creditors and to manage debt insolvency. 

Judicial liquidation

The role of bankruptcy receiver has been consolidated. He will be able to access Public Administration databases more easily and file legal proceedings which shareholders or creditors are entitled to. Receivers are responsible for allocating the assets among creditors, instead of the delegated judge. However, the receivers are subject to greater scrutiny when it comes to conflicts of interest.

How to prevent corporate insolvencies. Early warning and the role of courts

Debtors may initiate a pre-emptive alert phase if they believe that they are experiencing credit liquidity difficulties. Or, this alert phase can be initiated by courts when reported by public and private creditors. Reporting is mandatory for tax authorities and INPS, the Italian Social Security Agency. Listed companies and large companies are excluded from the new alert procedure.

Advantages and penalties for debtors through the alert procedure

If a debtor voluntarily initiates the alert procedure, they will be assisted by a body set up at the Chambers of Commerce and will have 6 months to reach composition with creditors. This is a similar solution to the one in Greece provided for by the rehabilitation process.

Debt restructuring arrangements

The new bankruptcy law provides for bonuses for entrepreneurs who voluntarily initiate the alert procedure. They will not be punished for bankruptcy offences, if the damage to assets is minor, and will be entitled to a reduction in interest and penalties for tax debts. In addition, the limit of 60% of receivables for the approval of the debt restructuring agreement can be eliminated or reduced. Finally, the new arrangement is permitted alongside the continuity arrangement, provided that it is able to ensure payment of at least 20% of unsecured claims.

Alert procedure initiated by a Court of First Instance upon notification by debtors

If, on the other hand, the proceeding is initiated by a court upon notification by creditors, the court summons the debtor and appoints an expert to resolve the crisis and recover the claims within 6 months.

Going concern and new procedural rules

Among the proposed arrangements between debtors and creditors, those that safeguard going concern will be given priority, but must be able to satisfy creditors. In this regard, judicial winding-up is the last of the possible solutions as a result of the bankruptcy proceedings adopted. Finally, the competent court is determined based on the size of the insolvency proceedings.

Insolvencies of groups of undertakings

The law also provides for more obligations to deal with the insolvency of the companies of a group, even in the event of separate proceedings. The bodies taking action are obliged to inform each other and cooperate in order to successfully address and resolve the insolvency crisis.

Learn more about the new bankruptcy law in Italy with legal assistance from Damiani&Damiani

New procedure for italian bankruptcy debt collection

Bankruptcy law, Credit recovery

Irene Damiani

More posts by

Related Post

  • How to manage contracts between Russia and Italy

    How to manage contracts between Russia and Italy

    By

    The war in Ukraine and the sanctions to Russia imply a modification in the economic consequences and juridical relationships between companies, especially regarding the possibility to perform the contractual obligations as per any contracts alreadyRead more

  • Corporate debtor insolvency code in Italy

    Corporate debtor insolvency code in Italy

    By

    Corporate debtor insolvency code in Italy – Here are all the news The new Corporate debtor insolvency code in Italy has been approved. The Council of Ministers approved it on 19 January 2019, completing theRead more

  • Regulation of bankruptcy proceedings in Italy. What the lawyer Domenico Damiani says

    Regulation of bankruptcy proceedings in Italy. What the lawyer Domenico Damiani says

    By

    The reform of Italian bankruptcy law has become law. What the lawyer Domenico Damiani says D. Which are the most important news organic revision of the whole Italian bankruptcy law? R. In the systematic reform ofRead more

  • Recovering debts in Greece. Rehabilitation procedure extrajudicial

    Recovering debts in Greece. Rehabilitation procedure extrajudicial

    By

    Recovering debts Greece Rehabilitation procedure If you have to recover a claim in Greece, you need to realise that the procedure is not simple and is different from that in Italy or other EU countries.Read more

  • Collect debts. Bankruptcy procedure in Italy

    Collect debts. Bankruptcy procedure in Italy

    By

    Collect debts Provisional and executive payment decrees are powerful instruments for creditors who want to collect their debts. Under given conditions, payment decree is an injunction of payment valid as enforceable title. However, sometimes it isRead more

NextPrevious

Search

Categories

  • Commercial and corporate law
  • Communication privacy management
  • Competition Law
  • Featured post
  • Immigration Law
  • International credit recovery
  • News
  • Startup Company

Recent Posts

  • How to obtain Italian citizenship for children of immigrants born in Italy
    0

    How to obtain Italian citizenship for children of immigrants born in Italy

  • Nazional citizenship. The European Court states the prevalence of European identity over national identity.
    0

    Nazional citizenship. The European Court states the prevalence of European identity over national identity.

  • Italian Citizenship Reform 2023: Novelties and Requirements for Descendants of Emigrants
    0

    Italian Citizenship Reform 2023: Novelties and Requirements for Descendants of Emigrants

  • Susan Sarandon: The Path to Italian Citizenship Goes Through the Court
    0

    Susan Sarandon: The Path to Italian Citizenship Goes Through the Court

Contact Us

    Damiani&Damiani International law firm & services represents the lawyer excellence, at the forefront of the new generation of laws. We aim at becoming the Italian trustful point of reference for people, entrepreneurs and firms, who have legal interests in Italy, and from Italy to the world.

    Privacy Policy

    • Legal Notice
    • Bug Report
    • Reserved Area

    CONTACT US
    info@damianianddamiani.com
    tel: (+39) 091347868
    fax: (+39) 091347868
    Via Gioacchino Di Marzo 14/F
    90144 – Palermo

    TURIN OFFICE
    tel: (+39) 0112766836
    fax: (+39) 011703115
    Via Balbis 3
    10144 – Torino

    ROME OFFICE
    tel: (+39) 0662289034
    fax: (+39) 0662289034
    via Lidia n. 73 – 00179 Roma

    ATHENS OFFICE

    tel: (+30) 21-6932190346
    33 Ag. Metaxa Street
    Office B4 – 2nd floor
    Glyfada, Athens
    Greeace

    BARCELONA OFFICE
    tel: (+39) 0692929360
    fax: (+39) 091347868
    Bisbe Catalá 12 Bajos
    08034 Barcelona

    ISTANBUL OFFICE
    tel: (+39) 0662289034

    Copyright 2017 Studio Legale Avv. Domenico Damiani | Via G.Di Marzo, 14/F 90144 Palermo | P.IVA: 00492200829 | All Rights Reserved | Powered by Damiani&Damiani - Consulenza SEO Roberto Conigliaro
    • Home
    • The Firm
    • Practice Areas
      • Litigation&Disputes
      • Corporate&Commercial
      • Debt Restructuring
      • Patent&Trademark IT
      • Compliance GDPR
      • Property and Real Estate Management
      • Banking&Finance
      • Consumer Law
      • Criminal Law
      • Immigration Citizenship
    • People
    • Network
    • Contact Us
    • Legal News
      • Video News
    • English
      • Italiano
      • Español
    Damiani & Damiani