Protection against creditors - Moratorium

If you are an entrepreneur (self-employed physical person or a legal person) you can ask the court for the so-called moratorium (protection against creditors) in a short period of time after initiation of insolvency proceedings (or even before it, if you are in the state of threatening insolvency).

A moratorium provides a debtor with a temporary protection against creditors and against possible decision on insolvency, but most importantly it provides space for overcoming insolvency or for reaching an agreement with the creditors.

How moratorium protects a debtor?

In the course of moratorium it is not possible to

• declare bankruptcy
• a debtor can preferentially repay those debts which are immediately related to keeping his company in operation
• a debtor is protected against termination of contracts for the supply of energies and raw materials as well as other supply contracts for products and services

Therefore the aim of a moratorium is an effort to keep the company in operation, even at the expense of equal position of all creditors.

We will suggest the most suitable way of settlement of your situation after a detailed analysis.