The Law On Insolvency (Bankruptcy) of 13 July 2012 comes into force on 25 January 2013. The law is not introducing bankruptcy of individuals despite many voices raised in favor of this concept so far unknown to the Belarusian legal system. However, other important novelties may be summarised as follows:
- An online, publicly accessible Unified Bankruptcy Register will be created. Published data will include, e.g., information on opening a bankruptcy case, introducing a protection period and instituting bankruptcy proceedings, appointment and dismissal of the bankruptcy trustee, public sale of the debtor’s property.
- Grounds have been specified for creditors to file a claim. A claim may be filed after expiry of three months after receipt of the debtor’s notification about own liquidation, provided that the debt has not decreased.
- Matters of professional liability of bankruptcy trustees and their insurance are regulated more specifically.
- The period for debtor rehabilitation (a bankruptcy procedure alternative to liquidation) can now be extended to a maximum five years upon application of the government authority approved by the Council of Ministers (the previous maximal rehabilitation period of 30 months was considered insufficient).
- In the light of precedents of hostile takeover, procedures related to valuation of debtor’s property, public sale of the property, writing the property off the debtor’s balance sheet are now regulated in greater detail.
To speed up liquidation of a bankrupt business, write-off of the debtor’s bad debts is eased.