Law Firm ALTERNA’s partner Siret Siilbek introduced the insolvency service to be created to the Competition Authority, in an article published by Ärileht.

The main problem of bankruptcy proceedings in Estonia is the high percentage of abatement of bankruptcy proceedings. To address this problem, the Ministry of Justice has prepared a draft legislation to create an insolvency service. Partner Siret Siilbek explains in her article, what is the planned competence and activities of the service.

Bankruptcy proceeding is terminated by abatement when the bankrupt company does not have enough means even to conduct the bankruptcy proceeding. The company shall be deleted without conducting bankruptcy proceeding and usually the reasons for insolvency and transactions of the debtor are not further investigated.

The insolvency service to be created to the Competition Authority will start conducting public investigations of bankruptcy proceedings, or conduct special audits in specific occasions. The Parliament of Estonia will start discussions of this draft legislation and its enforcement for insolvency service is planned on 01 January 2021.

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Questions regarding this article can be discussed with Siret by e-mail or by calling +372 680 6850.