Bankruptcy Reform, Failure is no longer called Failure
Bankruptcy: word to forget, now we are talking about judicial liquidation
The bankruptcy reform touches on various institutions linked to the business crisis. Among them, failure. Moreover, we are no longer talking about bankruptcy, but judicial liquidation. The terminological choice cannot be called casual, because in reality there is a sociological intention: to stop labeling a subject in such a negative way. but the news is not only lexical.
Indeed, the procedure changes, starting from the access to the same, as now a question is needed and this is the only way. The bankruptcy has in fact been eliminated and a single procedure is envisaged for ascertaining the state of crisis.
Who can be subjected to the new procedure
Any person can be subjected to the judicial liquidation procedure, including non-commercial entrepreneurs, who until now were excluded, being able to access the crisis settlement procedure, introduced by law in 2012, and which will be absorbed by the new legislation.
However the differences between the various types of debtors remain, for which there will be conservative procedures, on the one hand, and liquidations, on the other. The suspect period for the exercise of the revocation action changes, which must be made from the moment of the request for access to the procedure.
Expected to reduce costs and timing of the procedure
The objective of the reform is also to reduce the costs of the procedure. The aim is to be achieved through mechanisms for making the leading bodies accountable, in line with the principles of transparency and greater effectiveness, which must inspire all phases of the new crisis management process. In particular, it is also possible for the curator to access the databases and documents of the public administrations, as the 2016 law already allows.
Simplifications and, therefore, lower costs also in relation to the phases of assessment of liabilities and liquidation. In particular, a simplified application procedure is envisaged for applications of lesser value and foreclosures are established already in the phase before the single judge, to avoid complications and contingencies in phases already advanced in the procedure.