Bankrotimenetluses

Bankrotimenetluses refers to the legal process of bankruptcy proceedings in Estonia. It is a procedure designed to help individuals and businesses who are unable to meet their financial obligations. The primary goal of bankrotimenetluses is to provide a structured way to manage debt, protect creditors' rights, and, where possible, allow the debtor to make a fresh start.

The process is typically initiated by a court upon an application filed by the debtor or by one or more creditors. Once a bankruptcy proceeding is opened, the debtor's assets are taken into custody by a bankruptcy trustee. The trustee's role is to liquidate these assets and distribute the proceeds among the creditors according to a legally established order of priority. This usually involves selling off property, movable assets, and other valuable possessions.

Bankrotimenetluses can be initiated against both natural persons (individuals) and legal persons (companies). For individuals, the process can lead to the discharge of remaining debts under certain conditions, allowing them to escape overwhelming financial burdens. For companies, it often results in the dissolution of the business entity.

The Estonian Bankruptcy Law (Pankrotiseadus) governs these proceedings, outlining the rights and obligations of debtors, creditors, and the bankruptcy trustee. The law aims to ensure fairness and efficiency in the handling of insolvency cases, balancing the needs of those who owe money with those to whom money is owed. Decisions made during the bankruptcy process, such as the approval of creditor claims or the distribution of assets, can be reviewed by the court.