THE PRINCIPLE OF THE EFFECTIVENESS OF INSOLVENCY PROCEEDINGS IN THE EUROPEAN CONTEX

Abstract

Law no.85 / 2014 on Insolvency and Insolvency Prevention Procedures, known as the Insolvency Code, has explicitly regulated 13 principles on which its provisions are based. These principles give effect to the World Bank Insolvency Principles, the European Insolvency Principles and the UNCITRAL Legislative Guide on Insolvency. The Concept of Business Insolvency Code focuses on common rules that apply to all pre-insolvency and insolvency procedures in the Member States of the European Union, namely: encouraging insolvency prevention procedures by setting the foundations for a legal and business culture in negotiations; supporting the reorganization process at a reasonable economic and balanced level against a viable and bona fide debtor; in the event of a reorganization failure, the liquidation of assets can also be achieved by business transfer and its duration is reasonable, and asset recovery is effective.