How can I influence the course of bankruptcy proceedings? 🎬

In every bankruptcy proceeding it is necessary to take into account the diverse – and often conflicting – interests of the debtor and the creditors.

Therefore, it is worth considering how individual creditors participating in bankruptcy proceedings can change from passive participants into people who have a significant influence on the course of bankruptcy proceedings?

Creditors' Council

The creditors' council is a body that has a significant influence on the course of bankruptcy proceedings. What are its characteristics? The main task of the creditors' council is to represent the interests of all creditors. Importantly, the establishment of the creditors' council is not mandatory. If the creditors' council is not established in the proceedings, its powers are exercised by the judge-commissioner. He is also authorized to establish Creditors' councils, acting ex officio or at the request of the Board, appointing and dismissing its members, as well as supervising the activities of this body.

The provisions of Article 205 section 1 of the Bankruptcy Law define the rights, competences and obligations of the Creditors' Council in bankruptcy proceedings. So what competences does the Creditors' Council have?

1. The creditors' council is a body providing assistance to the trustee and supervising his activities,
2. The creditors' committee has the right to examine the state of the bankruptcy estate funds.,
3. Advice creditors shape the method of liquidation of the bankruptcy estate without her consent, under penalty of nullity, the trustee may not:
   a) run a bankrupt enterprise for more than three months;
   b) refrain from selling the enterprise as a whole;
   c) sale of property included in the bankruptcy estate without authorisation;
   d) take out loans or credits;
   e) enter into agreements;
   f) to recognise or waive rights in relation to disputed claims
   g) burden the bankruptcy estate
   h) sell movable and immovable property as well as property rights in the form of receivables and other
4. The creditors' council or its members may present their comments on the activities of the trustee to the judge-commissioner. 
5. The creditors’ committee may also demand explanations from the bankrupt and the trustee and examine the books and documents relating to the bankruptcy to the extent that this does not violate business secrets.

As can be seen from the above, the competences of the Creditors' Council are enormous and the role of creditors does not have to be limited only to reporting the amount of their receivables and passively waiting for their money.

Depending on the amount of your debt, you can become a member of the Creditors' Council, which has real influence on the course of bankruptcy proceedings. You do not have to perform this function personally, we can do it for you as your proxy.

PMR team

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