Frequently asked questions
Everything you ask when you want to know more about bankruptcy proceedings
What is bankruptcy proceedings and why is it conducted?
Bankruptcy proceedings are a special type of non-litigious proceedings that are conducted for the purpose of collective settlement of all creditors of the bankruptcy debtor by liquidating his property and distributing the collected funds to creditors. Collective settlement of all creditors of the bankruptcy debtor, carried out by liquidation of its assets and distribution of collected funds to creditors, will result in the termination of the legal entity of bankruptcy debtor, unless the creditors of the bankruptcy debtor accept the bankruptcy plan to which the bankruptcy debtor agrees. The bankruptcy debtor natural person (the individual debtor), after the conclusion of the bankruptcy proceedings, is liable without limitation for his remaining obligations, unless he submits a proposal for release from remaining obligations at the reporting hearing at the latest and the Court issues a decision determining release from remaining obligations.
Who is a bankruptcy trustee and how is he chosen?
Bankruptcy trustee is a body of bankruptcy proceedings (natural person) which:
- has the rights and obligations of the debtor’s body of a legal entity, unless otherwise provided by law
- manages the business of the bankruptcy debtor who continues to operate during the bankruptcy proceedings
- represents the debtor with the powers of a legal representative
- in bankruptcy proceedings, undertakes actions prescribed by law.
A person entered on the list of bankruptcy trustees for the area of the competent court may be appointed as the bankruptcy trustee.
The selection of the bankruptcy trustee is primarily and in most cases done by a computer algorithm that randomly selects from the list of bankruptcy trustees of the competent court and assigns the case to the currently least burdened bankruptcy trustee.
If the court considers that the bankruptcy trustee selected by the method of random selection does not have the necessary expertise or business experience necessary to conduct bankruptcy proceedings, it may choose another person from the list of bankruptcy trustees for the area of the competent court.
At the first or later hearing after the appointment of the bankruptcy trustee, the creditors’ assembly may elect another bankruptcy trustee instead of the bankruptcy trustee appointed by the court.
How can I find out more information about active bankruptcy trustees and ongoing bankruptcy proceedings?
Information on all bankruptcy proceedings, creditors, assets, liabilities and the course of bankruptcy proceedings is publicly available through the website e-oglasna ploča sudova
How Much Money Does a Bankruptcy Trustee Make?
The manner of determining the remuneration for the work of bankruptcy trustees is determined by the Decree on Criteria and the method of calculation and payment of remuneration to bankruptcy trustees, which determines the amount of this fee with the amount of realized liquidation of the bankruptcy debtor’s property, the degree of settlement of bankruptcy creditors, and the special efforts of the bankruptcy trustee, which is the Constitution guaranteed right to remuneration for work.
