Fraudulent bankruptcy lawyer in Bucharest
Has your company entered insolvency and a criminal complaint for fraudulent bankruptcy has been filed against you?The operations carried out before the procedure opened, the accounting records and the asset transfers are the first things the investigating authorities examine.
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What situation are you in right now?
Tell me at what stage the insolvency file is and what is being claimed against you.
The company is or has been in insolvency and a criminal complaint has been filed
Insolvency is not in itself an offense. The complaint must indicate concrete conduct, and that conduct is verified against documents.
You are a director or a member of the company's management
Liability is personal and is assessed on the decisions taken, the documents signed and the moment they were signed.
Transfers or disposals of assets are contested
I analyse the economic justification of each operation, its price and its timing relative to the opening of the procedure.
Missing accounting records or untrue debts are alleged
These allegations require verification of who kept the accounts, how the records were handed over and what documents actually exist.
What I review in a fraudulent bankruptcy file
- What concrete conduct is alleged and on what documents it is based.
- The chronology of the insolvency and the moment of the contested operations.
- The transfers of assets, their price and their economic justification.
- The state of the accounting records and how they were handed over.
- The reports of the insolvency practitioner and the creditors' claims.
- The damage claimed and the precautionary measures ordered.
What documents you should send me
Tell me what company is involved and what stage the insolvency procedure has reached.
The insolvency file
The decision opening the procedure, the reports filed and the creditors' table.
The accounting records
Balance sheets, trial balances, journals and any document on the company's financial position.
The contracts and asset transfers
Sale contracts, valuations, proof of payment and documents on the destination of the sums.
The reports of the insolvency practitioner or liquidator
The reports on the causes of insolvency and on the operations considered questionable.
What fraudulent bankruptcy is
Fraudulent bankruptcy means conduct carried out in fraud of creditors, in the context of insolvency, such as concealing assets, falsifying or destroying records, presenting untrue debts or disposing of assets to their detriment.
It is one of the most technical accusations in financial crime, because it requires a joint analysis of the insolvency file and of the company's accounts.
What conduct can amount to fraudulent bankruptcy
Concealing assets of the debtor
Removing assets from the reach of creditors, or hiding them from the procedure.
Falsifying, removing or destroying the records
Conduct affecting the accounting records of the debtor, so that the real financial position can no longer be established.
Presenting untrue debts
Introducing debts that do not exist, in order to alter the distribution among creditors.
Disposing of assets in fraud of creditors
Transfers made at undervalue or to related parties, in the period when insolvency was imminent.
The difference between fraudulent bankruptcy and simple bankruptcy
Simple bankruptcy concerns failure to comply with the obligation to request the opening of the insolvency procedure within the legal time limit.
Fraudulent bankruptcy requires conduct carried out in fraud of creditors. The two offenses have different conditions and different sentencing limits.
Does a company's insolvency automatically mean criminal liability?
No. Insolvency can result from market conditions, from unpaid receivables, from loss of financing or from decisions that proved commercially wrong.
Criminal liability requires proof of specific conduct carried out in fraud of creditors. A commercial failure, in itself, is not an offense.
Who can file a complaint for fraudulent bankruptcy
The complaint can come from creditors, from the insolvency practitioner or liquidator, or the file can be opened following notification by other authorities.
The insolvency practitioner's report on the causes of insolvency is often the document that triggers the criminal file, which is why it must be examined carefully.
How transfers of goods and assets before or during insolvency are analysed
The relevant elements are the timing of the operation, the price, the identity of the buyer, the destination of the sums received and the economic justification of the transaction.
A transfer made at market value, with payment received and used in the company's activity, has a different meaning from a transfer at undervalue to a related party shortly before the procedure opened.
The role of the accounting records and of expert evidence in a fraudulent bankruptcy file
The accounts are the main source of evidence. The absence of records, or their late handover, is often interpreted unfavourably, so the circumstances must be documented.
A judicial accounting expert report can establish the real financial position, the causes of insolvency and whether the contested operations affected the creditors. I submit expert objectives and objections to the report.
Fraudulent bankruptcy and damage to creditors
The damage is assessed by reference to the creditors' unsatisfied claims and to the effect of the contested operations on the debtor's estate.
Where the sums or assets were transferred through several companies or accounts, the file may also involve money laundering charges, and the defense must be built jointly.
How I build the defense in a fraudulent bankruptcy file
- I reconstruct the chronology of the insolvency and of the contested operations.
- I prove the economic justification of the transfers and the destination of the sums.
- I document the state of the accounts and how the records were handed over.
- I challenge the claimed damage through expert evidence and objections.
- I prepare you for questioning and assist you at every hearing.
Frequently asked questions
Does the company's bankruptcy mean fraudulent bankruptcy?
No. Insolvency can result from objective causes or from commercial decisions that proved wrong. The offense requires conduct carried out in fraud of creditors.Is the director automatically liable?
No. Liability is personal and is assessed on the decisions taken, on the documents signed and on the moment when the contested operations were carried out.Is selling the company's assets before insolvency an offense?
Not in itself. What matters is the price, the buyer, the destination of the sums and the economic justification of the operation.Who can file the complaint?
Creditors, the insolvency practitioner or liquidator, or the authorities that notify the prosecutor on the basis of the insolvency file.What is the difference between simple and fraudulent bankruptcy?
Simple bankruptcy concerns failing to request the opening of the procedure in time. Fraudulent bankruptcy requires conduct carried out in fraud of creditors.What is the role of the insolvency practitioner?
The practitioner administers the procedure and reports on the causes of insolvency. Those reports often become the basis of the criminal file.Can assets be frozen?
Yes, through precautionary measures ordered to secure recovery of the damage claimed by creditors. The measure can be challenged where it is disproportionate.
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Tell me in a few sentences what happened and I will tell you concretely what the next steps are. The first assessment discussion is free.
Official resources
- Criminal Code - art. 241 on fraudulent bankruptcy. (Legislation)
- Criminal Code - art. 240 on simple bankruptcy. (Legislation)