The insolvency procedure in Latvia can be declared after 6 months from the moment when person performs actions to register and move the centre of main interests to Latvia. After the insolvency procedure is declared, it can last 6 months – 3 years, depending on the amount of creditor claims that are filed and recognized during the procedure of insolvency.
Thus the average procedure is faster than in other EU member states. Additionally, when undergoing procedure in Latvia, most of the creditors from other countries usually do not exercise their right to apply, in that way decreasing the length of the procedure and making 1 year a most common duration of the proceedings.
The procedure itself is much more simple, formal and debtor-friendly than in most of the EU member states. Insolvency of the debtor shall be declared, if the debts of the person exceed EUR 5000 and the person does not have assets and income to cover the debts. Opinion or acceptance of the creditors of the bankruptcy procedure of the debtor is not asked and is not relevant.
Once the center of main interests is established and bankruptcy is declared, all execution against the debtor is instantly halted. The further movement of the procedure is dependant on fulfilling of formal requirements and is free from supervision or other bothering influence of the creditors.
Costs related to the undergoing of procedure are smaller than in other EU countries. When applying for bankruptcy, the person must cover the court fees of EUR 930. After the insolvency is declared, the person can keep most of his or her income, having an obligation to transfer 1/3 of the monthly income to the creditors.
The Law office Lumos team consists of advocates, lawyers and insolvency practitioners (liquidators) who handle cross-border insolvency cases on the daily basis. In that way Law office Lumos professionals can ensure smooth preparation and undergoing of the full procedure, timely and effectively dealing with questions and legal issues that may arise.
Our managing partner Aleksandrs Locans is an author of legal publications on cross-border insolvency cases and is one of the most recognized specialists in the respective field in Latvia.
The Law office Lumos is a registered sworn advocate office that adhers to the rules of the Latvian advocacy, is supervised by the Council of sworn advocates of Latvia and bears responsibility to the clients according to the provisions of Latvian law. You can view our team of professionals on our website and be sure to directly and personally receive best legal services on the matter.
Successful provision of services in cross-border insolvency cases demand high legal qualification and specialization in the field. It is not advisable to trust somebody with your entire financial future, if you are not sure about the legal qualification of the person or you are made unsubstantiated promises of new life within a matter of couple months. Already having tens of successful cross-border insolvency cases, Law office LUMOS has the knowledge in the field to provide you with actual information and realistic assessment of possibilities and risks, taking into account all of the circumstances of your case.
The Law office Lumos provides all necessary legal services and handles the case of the client from the beginning until it is successfully ended, dealing with any kind of situation that may arise, be it regarding creditors, court or court appointed administrator of the debtor. That includes assessment of the legal situation of the client and preparatory work for the application, as well preparation and filing of application, preparation and filing of all the necessary documents through the course of proceedings until they are successfully ended.
Apart from legal assistance, Law office LUMOS provides its clients with all the necessary logistical and technical support through the course of moving the center of main interests in Latvia. We will make sure to cover all of the questions and needs for your insolvency procedure. Do not hesitate to contact us to get free legal advice and assessment of your individual situation.