If someone owes you money, you have the right as a creditor to file a claim. If the debtor is in insolvency proceedings, filing a claim is a formal step by the creditor to recover the money due to him. However, the whole process of filing a claim has strict formalities. Learn how to file a claim and the consequences and issues involved.
The filing of a claim is a legal act by which a creditor officially notifies the insolvency court and the insolvency administrator of the existence of its claim against the creditor. If the creditor did not take this step, he would not be included in the insolvency proceedings and would not have a chance to satisfy his claim from the debtor’s assets. Without filing a claim, the creditor is not entitled to have its claim satisfied in the proceedings, even if the debtor has sufficient assets.
The filing of claims is governed by the Insolvency Act (on bankruptcy and its resolution), which sets out the procedure for filing claims, deadlines and other formalities. If a creditor fails to file its claim in time, it automatically loses the opportunity to participate in the insolvency proceedings and its claim becomes unenforceable.
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Creditors are not only companies, but often include so-called ordinary people who are not versed in the law or in debt-related matters. They have lent money to someone in good faith and are now in trouble because they do not know how to get their money back from the debtor. If you are one of these people, don’t be afraid to use our legal advice centre where we will be happy to help you with the whole matter. Our lawyer will contact you within 48 hours.
Compliance with the statutory deadline for filing a claim is of course a prerequisite for a creditor to be able to claim satisfaction of the claim. This period starts on the date of publication of the debtor’s bankruptcy order in the insolvency register. Creditors then usually have between 30 and 60 days to lodge their claim, the specific deadline being specified in the insolvency court’s decision on the debtor’s insolvency.
If creditors miss this deadline, their claims will not be satisfied in the insolvency proceedings. This can have serious consequences for creditors, especially if their claim is unsecured. There are certain exceptions, such as claims against the estate, which can be filed even after the time limit has expired because they arise after the insolvency proceedings have been opened. These claims have priority for satisfaction in the same way as priority claims.
A claim is always filed using the prescribed form available on the website of the Ministry of Justice. There you will find more detailed information and a link to the form. If you have a data mailbox, it is only right, as you can submit the form electronically via this tool. But beware! If you submit via a data box, the form must be accompanied by a qualified electronic signature. The other option is the time-honoured method, where creditors can file by post. In both cases, they must observe certain formalities.
Be careful to fill in the application thoroughly and really correctly. Even a minor mistake can cause the insolvency administrator to reject your application for a claim and you will lose your right to recover. We highly recommend a consultation with our lawyer who will check your application and all the details associated with it.
Creditors have a number of rights after filing a claim in insolvency proceedings. Among the most important are the right to attend creditors’ meetings where they can vote on key issues relating to the insolvency process, including the approval of a reorganisation plan or proposals for the resolution of the insolvency.
Creditors also have the right to examine the claims filed by other creditors and to object if they consider that a claim is not justified.
Tip: On the justice.cz website you will find a form that you need to fill out if you want to file your claim so that the debtor will pay you.
Yes, even the claims filed can be divided into different categories according to their nature and legal status.
The first is secured claims. These are those that are covered by a pledge, guarantee or other type of security. A creditor with a secured claim is entitled to have it satisfied with money from the sale of the debtor’s assets. Such claims have priority in the distribution of the debtor’s assets.
The opposite is logically the case for unsecured claims, i.e. those which are not covered by any security right. The satisfaction of such claims comes after the secured claims, so they may not even be covered if the assets are insufficient to pay all the debts.
Then there are claims against the assets. These are claims that arose after the insolvency proceedings were opened and are related to the administration and maintenance of the estate. It is these claims that have the highest priority for satisfaction. They include, for example, the insolvency administrator’s remuneration.
The last type that could be mentioned are contingent claims. The maturity of these claims depends on certain conditions being met, so that until a certain event occurs, which is specified in the contract between the creditor and the debtor, these claims cannot be paid.
The filing of a claim may vary depending on the type of insolvency proceedings in which the creditor is involved.
Bankruptcy is a liquidation process where the debtor’s assets are sold. The proceeds are then distributed to creditors in a predetermined order. The filing of a claim is necessary precisely in order for a creditor to be included in the distribution of the proceeds of the bankruptcy estate. Creditors usually have 60 days to file their claims.
A reorganisation allows the debtor to continue to operate, but only under the supervision of creditors who file their claims and participate in the creation of the reorganisation plan. This plan determines how creditors will be satisfied. Creditors have the right to vote on the reorganisation plan and thus have a greater influence on the course of the proceedings.
Bankruptcy is for individuals and small businesses. Creditors file their claims in the proceedings and their satisfaction depends on the debtor’s income during the duration of the arrangement. The creditors participate in the distribution of the debtor’s income and the eventual sale of his assets.
Unfiled claims cannot be satisfied in the insolvency proceedings, and creditors lose the opportunity to recover their money. However, there are some exceptions that allow claims to be filed later, such as claims against the estate.
If the insolvency practitioner rejects the claim, the creditor can go to court, but the likelihood of success is usually limited.
Filing a claim is a necessary step for a creditor to recover money owed to them. However, if the creditor fails to file within the time limit, which is usually 30 to 60 days, he or she loses the right to have the claim satisfied. Once the application has been approved by the insolvency administrator, the creditor is entitled to participate actively in the proceedings in order to maximise the chances of satisfying its claims.
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