{"id":2689,"date":"2023-07-04T07:45:07","date_gmt":"2023-07-04T07:45:07","guid":{"rendered":"https:\/\/insolvency.dgmedialink.com\/single-digital-gateway\/general-information\/"},"modified":"2023-07-11T10:06:25","modified_gmt":"2023-07-11T10:06:25","slug":"general-information","status":"publish","type":"page","link":"https:\/\/www.insolvency.gov.cy\/en\/single-digital-gateway\/general-information\/","title":{"rendered":"General Information on the National Insolvency Framework"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"2689\" class=\"elementor elementor-2689 elementor-2629\" data-elementor-post-type=\"page\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1562549 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1562549\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-da070fa\" data-id=\"da070fa\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b94488e elementor-widget elementor-widget-heading\" data-id=\"b94488e\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.18.0 - 04-12-2023 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h1 class=\"elementor-heading-title elementor-size-default\">General Information on the National Insolvency Framework<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-e538bff elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"e538bff\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-d3162f2\" data-id=\"d3162f2\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2d81f3e elementor-widget elementor-widget-heading\" data-id=\"2d81f3e\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Main insolvency proceedings<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7377683 elementor-widget elementor-widget-text-editor\" data-id=\"7377683\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.18.0 - 04-12-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>The Insolvency Department is responsible for the efficient implementation of insolvency proceedings as arising from the legislation of the national insolvency framework. The aim of the insolvency framework is to maintain employment, reduce the number of non-performing loans, encourage economic activity and ensure social cohesion.<\/p>\n<p>In national legislation, insolvency proceedings for the rescue and restoration of business activity, as well as for the reconstruction and maintenance of viable undertakings are supported by established company debt restructuring mechanisms regarding the Appointment of examiners and the Appointment of receivers\/administrators.<\/p>\n<p>The effective management of the bankruptcy estate is supported by the insolvency proceedings regarding the Compulsory winding-up by Court order and the Voluntary winding-up (by members, by creditors, subject to Court supervision).<\/p>\n<p>Insolvency proceedings for the sustainability of natural persons are supported by the debt restructuring mechanism, through the Personal Repayment Plan, and the debt relief mechanism through the Debt Relief Order.<\/p>\n<p>Also, through the insolvency proceedings relating to the Bankruptcy order following a Court order, the effective management of the bankruptcy estate is ensured and at the same time entrepreneurs and\/or indebted individuals are given a second chance through the automatic discharge along with the a relief from their verifiable debts.<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-eacf729 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"eacf729\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6ddf07c\" data-id=\"6ddf07c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7058667 elementor-widget elementor-widget-heading\" data-id=\"7058667\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Obligations for debtor\/company directors arising from a viability assessment<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-fee76a7 elementor-widget elementor-widget-text-editor\" data-id=\"fee76a7\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The current legislation does not provide for any business viability assessment, from which specific obligations arise for the debtor or the directors of the business.<\/p>\n<p>Viability assessment in order to demonstrate that the company has reasonable survival prospect is provided for where an examiner is appointed, as a prerequisite for the issue of an examiner&#8217;s appointment order.<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b6bf50c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b6bf50c\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-0c0e556\" data-id=\"0c0e556\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c81dc9f elementor-widget elementor-widget-heading\" data-id=\"c81dc9f\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Directors' liability for insolvency-related duties<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-de1666c elementor-widget elementor-widget-text-editor\" data-id=\"de1666c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The liability of the officers of the company in insolvency matters is laid down in the\u00a0<a href=\"http:\/\/www.cylaw.org\/nomoi\/indexes\/113.html\" target=\"_blank\" rel=\"noopener\"><u>Company Law<\/u><\/a>. Officers have, among others, the following obligations:<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a8b4edc elementor-widget elementor-widget-text-editor\" data-id=\"a8b4edc\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul>\n<li>Where an examiner is appointed, officers should present all the books and documents of the company to them, as well as provide any help they may need regarding their functions.<\/li>\n<li>Where a receiver\/administrator is appointed, the company\/officers must deliver a statement of its assets to the receiver\/administrator. Also, every document bearing the trade name of the company should include a statement regarding the appointment of a receiver\/administrator of its property.<\/li>\n<li>In the case of Winding-up, the officers should:\n<ul>\n<li>Fill in the relevant questionnaire regarding the affairs of the company;<\/li>\n<li>Submit a statement of the company\u2019s property status;<\/li>\n<li>Assist the liquidator to register and identify the company\u2019s property; and<\/li>\n<li>Provide any information requested with relation to the company.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a995181 elementor-widget elementor-widget-text-editor\" data-id=\"a995181\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The legislation also includes provisions on the officers\u2019 actions prior or during the winding-up that are considered offences. It is also provided that, following the issue of a winding-up order and upon request of the official receiver or liquidator for the examination of the officers, the Court examines whether there has been fraud when the company was carrying out its business. Moreover, omission fees and the definition of an officer in charge of an omission are laid down.<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-2573efb elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"2573efb\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-4641345\" data-id=\"4641345\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-7b81c77 elementor-widget elementor-widget-heading\" data-id=\"7b81c77\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Appointment of an insolvency pratitioner in insolvency proceedings<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ca846ea elementor-widget elementor-widget-text-editor\" data-id=\"ca846ea\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>In accordance with the provisions of Article 8 of the\u00a0<a href=\"http:\/\/www.cylaw.org\/nomoi\/indexes\/2015_1_64.html\" target=\"_blank\" rel=\"noopener\"><u>Law on Insolvency Practitioners<\/u><\/a>\u00a0&#8216;Any person may act as an insolvency practitioner at any time, if they own a valid insolvency practitioner licence at that point&#8217;, which has been issued pursuant to the provisions of the Law. The article also sets out the cases where an individual cannot be appointed as a practitioner in insolvency proceedings, for example in the case of a legal person or a bankrupt individual who has not recovered or holds a public office or has been convicted for an offence.<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-57df00b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"57df00b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-3e61894\" data-id=\"3e61894\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-dd2d34f elementor-widget elementor-widget-heading\" data-id=\"dd2d34f\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Who appoints insolvency practitioner<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4087a61 elementor-widget elementor-widget-text-editor\" data-id=\"4087a61\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The appointment of insolvency practitioners in insolvency proceedings is determined in accordance with the provisions of the legislation in each procedure. The company, the debtor, the creditors, the Court or the official receiver may proceed to the appointment.<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-2d7ab21 elementor-widget elementor-widget-text-editor\" data-id=\"2d7ab21\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>As laid down in the\u00a0<a href=\"http:\/\/www.cylaw.org\/nomoi\/indexes\/113.html\" target=\"_blank\" rel=\"noopener\"><u>Company Law<\/u><\/a>, in the procedure for the Appointment of examiners, the Court may appoint an examiner, following a petition filed before it. The petition includes a suggestion on the person to be appointed as examiner, who has the qualifications to act as an insolvency practitioner.<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-10f999d elementor-widget elementor-widget-text-editor\" data-id=\"10f999d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>In the case of company winding-up by Court order, the Court may appoint a licensed insolvency practitioner as a temporary liquidator at any time after the filing of a winding-up petition to the Court, for the protection of the assets and the maintenance of the company\u2019s status. When a winding-up order is issued, given their capacity the official receiver serves as liquidator. Upon request of the official receiver, the Court may appoint any other person as liquidator. Moreover, any other person may be appointed as liquidator in the Creditors\u2019 and contributors\u2019 meetings. The official receiver may request the appointment of a special administrator by the Court.<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-55afa87 elementor-widget elementor-widget-text-editor\" data-id=\"55afa87\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>In the case of voluntary winding-up by its members, the Company appoints one or more liquidators. In the case of voluntary winding-up by its creditors, the liquidator is appointed by the creditors and the company so as to settle the affairs of the company and distribute its assets. When an order on the voluntary winding-up subject to Court supervision is issued, the Court may appoint an additional liquidator by virtue of this order or any other subsequent order.<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-bc39a83 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"bc39a83\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7b38e94\" data-id=\"7b38e94\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-0b75e03 elementor-widget elementor-widget-text-editor\" data-id=\"0b75e03\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>In the case of Bankruptcy, as laid down in the\u00a0<a href=\"http:\/\/www.cylaw.org\/nomoi\/indexes\/5.html\" target=\"_blank\" rel=\"noopener\">Bankruptcy Law<\/a>, the Court may appoint a licensed insolvency practitioner (or the official receiver) as temporary administrator. The official receiver may, upon request of the creditors and approval of the Court, appoint a special administrator. As soon as the bankruptcy order is issued, the official receiver is appointed as administrator. The creditors in their meeting may appoint a private administrator from the list of licensed professionals.<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-74fd998 elementor-widget elementor-widget-text-editor\" data-id=\"74fd998\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>In the case of Personal Repayment Plan, as provided for in the Law on the <a href=\"http:\/\/www.cylaw.org\/nomoi\/indexes\/2015_1_65.html\" target=\"_blank\" rel=\"noopener\">Insolvency of Natural Persons<\/a>, the debtor selects and appoints an insolvency practitioner to act on their behalf.<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4dc0e56 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4dc0e56\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-c27f492\" data-id=\"c27f492\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-5151d6b elementor-widget elementor-widget-heading\" data-id=\"5151d6b\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Conditions for the appointment of an insolvency practitioner by another MS<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-647b2f5 elementor-widget elementor-widget-text-editor\" data-id=\"647b2f5\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The conditions that must be met by natural persons\/professionals so as to be licensed to act as insolvency practitioners are provided for in Article 14 of the\u00a0<a href=\"http:\/\/www.cylaw.org\/nomoi\/indexes\/2015_1_64.html\"><u>Law on Insolvency Practitioners<\/u><\/a>.<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d05f666 elementor-widget elementor-widget-text-editor\" data-id=\"d05f666\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The provisions of the Article refer to the recognition of professional qualifications of nationals of other Member States: &#8216;(6) The requirements set out in this Article are applied in full respect of the provisions of the Law on the Recognition of Professional Qualifications, with relation to the nationals of a Member State who have obtained professional qualifications in Cyprus and wish to act as insolvency practitioners in Cyprus, and any third-country nationals who, in accordance with the law, have the same rights in terms of the recognition of certificates, diplomas or other professional qualifications with Cypriot nationals&#8217;.<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-c7f15b9 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"c7f15b9\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-2bf96e7\" data-id=\"2bf96e7\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-18dc34d elementor-widget elementor-widget-heading\" data-id=\"18dc34d\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How claims from employees are treated<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5807ccc elementor-widget elementor-widget-text-editor\" data-id=\"5807ccc\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>In the case of a company winding-up by Court order, the claims from employees are treated as preferential payments and are paid before any other debts. Similarly, in the case of Bankruptcy, when the bankrupt\u2019s property is distributed, the employees\u2019 fees debts are paid first.<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6737f5b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6737f5b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-45c90af\" data-id=\"45c90af\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9ee4f91 elementor-widget elementor-widget-heading\" data-id=\"9ee4f91\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Special arrangements facilitating insolvency proceedings for SMEs<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ff1d63e elementor-widget elementor-widget-text-editor\" data-id=\"ff1d63e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>There are special arrangements facilitating insolvency proceedings for SMEs through the personal repayment plan procedure providing for coordinated repayment plans for natural persons and very small businesses (<a href=\"http:\/\/www.cylaw.org\/nomoi\/indexes\/2015_1_64.html\" target=\"_blank\" rel=\"noopener\"><u>Law on the Insolvency of Natural Persons<\/u><\/a>,\u00a0<u>TITLE IV<\/u>).<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e9b25f0 elementor-widget elementor-widget-text-editor\" data-id=\"e9b25f0\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>According to the plan, in case that the main residence of the debtor serves as a collateral for the debt of a very small business, the debtor may, while being subject to the personal repayment plan procedure, at the date of issue of the protection order, file an application for the appointment of an examiner for the business, so as for the coordinated repayment plan procedure to commence.<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-55c5dec elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"55c5dec\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-78f5d18\" data-id=\"78f5d18\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-622060e elementor-widget elementor-widget-heading\" data-id=\"622060e\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Circumstances where a debtor can continue to carry on business during rescue or insolvency proceedings<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3f7441d elementor-widget elementor-widget-text-editor\" data-id=\"3f7441d\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>During rescue or insolvency proceedings, an undertaking may carry on business:<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-66ee2f2 elementor-widget elementor-widget-text-editor\" data-id=\"66ee2f2\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul>\n<li>Through the protection and debt restructuring framework provided for in the process of examiner Appointment;<\/li>\n<li>In the settlement for restructuring and liquidating part of the property provided for in the process of receiver Appointment; and<\/li>\n<li>In the personal repayment plan in the context of coordinating repayment plans and natural persons and very small businesses.<\/li>\n<\/ul>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-028daed elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"028daed\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-076c587\" data-id=\"076c587\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-c41e34a elementor-widget elementor-widget-heading\" data-id=\"c41e34a\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Release of over-indebted entrereneurs\/citizes form unsecured debts<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0b3e138 elementor-widget elementor-widget-text-editor\" data-id=\"0b3e138\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Over-indebted entrepreneurs\/citizens may be released from non-secured debts in the context of:<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-10d22af elementor-widget elementor-widget-text-editor\" data-id=\"10d22af\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul>\n<li>The Bankruptcy procedure, where a full relief from verifiable debts is provided. A second chance is also provided through the automatic discharge of the bankrupt, after the lapse of 30 years from the date of issue of the Bankruptcy Order; and<\/li>\n<li>The Debt Relief Order procedure which allows relief from unsecured debts of up to EUR 25 000 for insolvent natural persons.<\/li>\n<\/ul>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-fe0d7c9 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"fe0d7c9\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-93edbaf\" data-id=\"93edbaf\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-60dabc3 elementor-widget elementor-widget-heading\" data-id=\"60dabc3\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Rules on access to finance for second starters<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-3fa9a6a elementor-widget elementor-widget-text-editor\" data-id=\"3fa9a6a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>In the case of Bankruptcy, no debtor may ensure a credit for an amount equal or higher than EUR 650 during the process and until their recovery, without notifying the creditor in advance that they are a bankrupt individual who has not recovered. A debtor during the procedure of a personal repayment plan is also obliged to notify the creditor.<\/p>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1a221806 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1a221806\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-37aa8a19\" data-id=\"37aa8a19\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1b898631 elementor-widget elementor-widget-shortcode\" data-id=\"1b898631\" data-element_type=\"widget\" data-widget_type=\"shortcode.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-shortcode\">Last Modified: 11\/07\/2023<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-686a76a3 govcy-btn-primary elementor-widget elementor-widget-button\" data-id=\"686a76a3\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/foq.youreurope.europa.eu\/info-service-noft?lang=en\" target=\"_blank\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-text\">Help us improve<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-299b23c2 elementor-widget elementor-widget-image\" data-id=\"299b23c2\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.18.0 - 04-12-2023 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/europa.eu\/youreurope\/index.htm#en\" target=\"_blank\">\n\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"498\" height=\"245\" src=\"https:\/\/www.insolvency.gov.cy\/wp-content\/uploads\/youreurope.jpg\" class=\"attachment-large size-large wp-image-2660\" alt=\"Your Europe\" srcset=\"https:\/\/www.insolvency.gov.cy\/wp-content\/uploads\/youreurope.jpg 498w, https:\/\/www.insolvency.gov.cy\/wp-content\/uploads\/youreurope-300x148.jpg 300w\" sizes=\"(max-width: 498px) 100vw, 498px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Main insolvency proceedings The Insolvency Department is responsible for the efficient implementation of insolvency proceedings as arising from the legislation of the national insolvency framework. The aim of the insolvency framework is to maintain employment, reduce the number of non-performing loans, encourage economic activity and ensure social cohesion. In national legislation, insolvency proceedings for the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":2687,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.insolvency.gov.cy\/en\/wp-json\/wp\/v2\/pages\/2689"}],"collection":[{"href":"https:\/\/www.insolvency.gov.cy\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.insolvency.gov.cy\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.insolvency.gov.cy\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.insolvency.gov.cy\/en\/wp-json\/wp\/v2\/comments?post=2689"}],"version-history":[{"count":2,"href":"https:\/\/www.insolvency.gov.cy\/en\/wp-json\/wp\/v2\/pages\/2689\/revisions"}],"predecessor-version":[{"id":4325,"href":"https:\/\/www.insolvency.gov.cy\/en\/wp-json\/wp\/v2\/pages\/2689\/revisions\/4325"}],"up":[{"embeddable":true,"href":"https:\/\/www.insolvency.gov.cy\/en\/wp-json\/wp\/v2\/pages\/2687"}],"wp:attachment":[{"href":"https:\/\/www.insolvency.gov.cy\/en\/wp-json\/wp\/v2\/media?parent=2689"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}