Bankruptcy proceeding is initiated in order to reimburse all the creditors involved, by collecting and selling the debtor’s property and distributing the proceeds to the creditors.The debtor is defined as either legal person or a natural person (craftsman or tradesman), who is insolvent and overindebted.

Bankruptcy proceedings are under the governance of the commercial court presiding in the same area as the debtor’s place of business. The bankruptcy proceedings at the Commercial Court in Rijeka are carried out by three presiding judges. A bankruptcy trustee is natural person who completed a university degree, professional trustee examination and is listed on the Ministry of Justice trustee list, updated every four years. At the moment, in the Republic of Croatia there are about 250 bankruptcy trustees appointed. A bankruptcy trustee is appointed by a court order initiating a bankruptcy proceeding.

The petition for bankruptcy proceedings is filed by either the debtor or the creditors. The creditor filing for the bankruptcy proceedings is to pay a court fee for the petition in addition to 10 000,00 kn paid to establish a bankruptcy proceeding expense fund. The workforce employed by the debtor, including those formerly on the payroll, as well as the Republic of Croatia are exempt from paying the additional fee in case they act as debtors filing the petition for the bankruptcy proceedings to be initiated.

The notice of the bankruptcy proceedings being inititiated is published on the court bulletin board and in the Official Gazette. The notice is to set a 15-30 day deadline, within which the debtors can file for their claims. The claims are filed for in two copies, for a fee that amounts to 2% of the claim filed for, not exceeding the maximum amount of 500,00kn. The claims are filed for in the office of the bankruptcy trustee.

To make sure your petition for initiation of bankruptcy proceedings or for settling your claims is properly filed, it is highly advisable you consult an attorney. As for the courseof the bankruptcy proceeding, the bankruptcy trustee is there to provide all the necessary information.

Ana Vičević Gračanin, Attorney at Law, has been appointed a bankruptcy trustee since 2010. The list is issued by the Ministry of Justice.