Insolvency proceedings in Latvia
In Latvia insolvency proceedings are governed by the Insolvency law. The law applies to both, legal and natural persons. It should be noted that insolvency proceedings of credit institutions are regulated by a separate law.
The Insolvency Register in Latvia
In order to ensure the public awareness of legal protection proceedings, the insolvency proceedings of a legal and natural person, the responsible authority in Latvia shall organise and administer an Insolvency Register. The Insolvency Register is accessible to everyone free of charge, and the entries therein are publicly reliable. The Insolvency Register includes all the information specified in the Insolvency law.
Administrator of insolvency proceedings
Insolvency proceedings in Latvia are operated under an administrator. An administrator of insolvency proceedings is a natural person who has acquired a certificate of an administrator of insolvency proceedings. The rights and duties of an administrator are specified in the law. Administrators activities in insolvency proceedings are monitored by Insolvency Administration.
Creditors’ claims against a debtor shall be submitted to the administrator within one month from the day when the entry is made in the register regarding the proclamation of the insolvency proceedings of the debtor.
Submission of a creditors claim
If a creditor has missed the deadline for submitting a claim, he may submit his or her claim against the debtor within a deadline not exceeding six months from the day when the entry has been made in the Insolvency Register regarding the proclamation of the insolvency proceedings of the debtor. However this claim can not be done later than until the day when the plan for settling the creditors’ claims has been formulated in accordance with the procedure specified in the Insolvency law. Following this deadline the creditor shall lose his or her creditor status and his or her rights to claim against the debtor.
In their submission of the claim the creditors shall indicate:
- the grounds for the claim;
- the type of claim;
- the amount of the claim, separately referring to the amount of the main claim and the amount of the ancillary claim;
- the time the claim arose;
- whether the creditor is recognised as an interested person within the meaning of Section 72 of the Insolvency law;
- the contact information including electronic mail address; and
- the bank account number.
A secured creditor, shall indicate the amount for which the claim is secured when submitting a creditor’s claim.
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