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Position of creditors

Forms of security

What are the main forms of security over moveable and immoveable property and how are they given legal effect?

The main forms of security are pledges, moveable and immoveable privileges, moveable and immoveable mortgages and retention rights. Moreover, the Civil Code regulates surety as the main form of personal security.

A secured creditor holding one of these forms of security enjoys certain rights under Law 85/2014, including to:

  • be registered as a secured creditor with the table of receivables and thus enjoy a better chance of having its receivable paid;
  • request the syndic judge to withdraw the suspension of the enforcement procedure caused by the commencement of insolvency, and consequently to obtain the sale of its security or alternative protection remedies;
  • collect interest and accessories for the secured receivable if bankruptcy is opened; and
  • receive preferential payments within reorganisation and bankruptcy.

Ranking of creditors

How are creditors’ claims ranked in insolvency proceedings?

The main forms of security are pledges, moveable and immoveable privileges, moveable and immoveable mortgages and retention rights. Moreover, the Civil Code regulates surety as the main form of personal security.

A secured creditor holding one of these forms of security enjoys certain rights under Law 85/2014, including to:

  • be registered as a secured creditor with the table of receivables and thus enjoy a better chance of having its receivable paid;
  • request the syndic judge to withdraw the suspension of the enforcement procedure caused by the commencement of insolvency, and consequently to obtain the sale of its security or alternative protection remedies;
  • collect interest and accessories for the secured receivable if bankruptcy is opened; and
  • receive preferential payments within reorganisation and bankruptcy.

Can this ranking be amended in any way?

No, the aforementioned ranking is provided for by Law 85/2014 and cannot be amended.

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