State service portal
Information updated 16.09.2021.
Due to various circumstances, both natural and legal persons may enter into a situation which prevents a full settlement with partners and other creditors. However, insolvency proceedings are available in order to deal with the problem which arises, by means of which it can be possible to maintain or restore solvency or to terminate its business altogether by settling with creditors as best as possible.
Three types of insolvency proceedings are currently available in Latvia – the insolvency process of a natural person, the insolvency process of a legal person and the legal protection process (including its type - the out-of-court legal protection process).
Related bodies:Ministry of Justice (TM);Ministry of Economy (EM);State Revenue Service (SRS);Insolvency Control Service (MKD);Administration of the Courts (TA);Register of companies (UR);Latvian National Archives (LNA);Office of Citizenship and Migration Affairs (PMLP);National Data Inspectorate (DVI);Latvian State Radio and Television Centre (LVRTC);Bank of Latvia Credit Register
Useful resources:Insolvency register;Insolvency Control Service;Manas.tiesas.lv;Electronic auction site;Guidelines on “Extraordinary debt restructuring in Latvia”.Guidelines "How to solve business debt problems successfully".
Link to the life situation:Mana.Latvija.lv
Rodapé no estilo do site daApple, qUE usa um truque com checkbox para ter uma solução 100% CSS para mostrar ou recolher um menu. Aqui troquei o checkbox por two e links.
The purpose of the insolvency proceedings of a natural person is to satisfy, as far as possible, creditors' claims on the debtor's property and to enable the debtor, whose property and income are insufficient to cover all debts, to be released from outstanding obligations – debts – and to restore solvency.
Insolvency proceedings may be consultedIn the insolvency control service, with a lawyer or insolvency practitioner appointed in the relevant insolvency proceedings, as well as in private undertakings providing services related to insolvency.
To which persons may be subject to insolvency proceedings
The insolvency proceedings of a natural person may be applied to a natural person who has been the Republic of Latvia for the last six monthsTax payersand who has financial difficulties (signs of insolvency):
The insolvency proceedings of a natural person shall not be applicable to a person:
The insolvency proceedings of a natural person shall not be applicable to individual economic operators.
After the discharge procedure has been completednot deleted:
Filing of an application for insolvency proceedings by a natural person
In order to apply the insolvency proceedings of a natural person, insolvency proceedings must be carried outdepositcontribution of twominimum monthly salaryto the extent established by the Insolvency Control Servicein account. The Insolvency Control Service shall direct this deposit to remuneration for the work of the insolvency practitioner. If the insolvency proceedings of a natural person are not declared,deposit is repaid.
The submission of an application for insolvency proceedings by a natural person to the court must also be paidThe State fee.
An application for insolvency proceedings shall be submitted to the court by the debtor himself or herself (it shall be submitted by the guardian or trustee, if the person cannot represent himself or herself). Use a sitemanas.tiesas.lvto keep track of their submissions and cases.
The application must be submitted to the court at the time of his declared place of residence, registered with the debtor three months before the application was lodged with the court, but, in the absence of such, after the place of residence. To find out your declared place of residence, use e-service “My data population register”.
Service 'My data population registerfor “Follow-up steps, see video:
On the other hand, use to declare a place of residenceLatvija.lve-ServicesSubmission of a declaration of a place of residence”. Read more about declaring a place of residence in the description of the life situation “Notification of residence or declaration”.
Service 'Submission of a declaration of a place of residencefor “Follow-up steps, see video:
Upon receipt of an application for insolvency proceedings, the court shall examine the applicant's personality. If it cannot be verified that the applicant does not have an appropriate authorisation, the application shall not be accepted.
The insolvency proceedings of a natural personthe application must contain:
The application must be accompanied by documents confirming:
The debtor must be able to demonstrate to the court that his financial situation has changed so far that he is unable to cover his obligations, as well as to justify why his debts cannot be settled, for example, that there is no property and income that would allow him to meet his commitments in time.
The inadequacy between the debt and the debtor's property and income must be provable and reasonable, but the final decision whether the natural person in question is to be declared insolvent is taken by the court. Unless the court sees a special need, the assessment of the application for insolvency proceedings does not take place in person, so the person does not need to appear before the court.
The insolvency proceedings of a natural person shall consist successively of the bankruptcy proceedings and the discharge procedure. If the court decides that the insolvency proceedings are applicable, it shall appoint an insolvency practitioner who, within the framework of the bankruptcy proceedings, carries out the necessary activities for the identification, management and sale of the debtor's property. During the bankruptcy proceedings, the debtor, in cooperation with the creditors, shall draw up a discharge plan submitted to the court for approval. The court shall approve the netting plan when deciding on the completion of the bankruptcy procedure and the opening of the discharge procedure.
Information on the opening of insolvency proceedings will be entered in the insolvency register, availableOn the website of the Enterprise Register of the Republic of Latviaand the information shall be publicly available and shall be viewed free of charge. After making an entry in the insolvency register, the deadline for the submission of creditors' claims will begin.
The administrator of the insolvency proceedings shall be appointed in the insolvency proceedings of a natural person by a court adjudication. The debtor cannot choose the administrator. The administrator shall be a natural person who has been appointed as an administrator and who shall ensure that the process is in progress. Read more about the requirements for administratorsOn the website of the Insolvency Control Service. Information on administrators and insolvency proceedings can be found at:in the register of insolvency.
A person may use Latvija.lv e-service in the insolvency proceedings of a natural person "My data population register"to view information about themselves, their children, persons under guardianship and guardianship, and to provide the administrator with information (given name, surname and personal code) regarding first-degree relatives for evaluating transactions.
Service "My data population register"View video for the execution steps:
The entire debtor's property is sold under bankruptcy proceedings and the funds obtained are diverted to the satisfaction of creditors' claims, exceptCivil Procedure Lawthe specified property to which recovery cannot be directed. If, within the framework of insolvency proceedings, it is necessary to sell real estate at auction, the auction may be performedon the website of electronic auctions. The auction shall be organised by an administrator, the debtor himself shall not sell the property during the insolvency proceedings. The site can follow auctions, search and promise for real estate. More about using a site, readizsoles.ta.gov.lv.
During the insolvency proceedings, the debtor has an obligation to cover the costs of the insolvency proceedings related to the proceedings in question. Such expenses include the valuation of real estate, publication of an advertisement, mailing, etc. (more than the costs of which are covered by the debtor's property and which, from the debtor's income, readArticle 172 of the Law on Insolvency). Upon completion of the bankruptcy proceedings, the court may apply the discharge procedure.
As part of the discharge procedure, part of the debtor's income is transferred to the satisfaction of creditors' claims. After the successful discharge procedure has been completed, uncovered liabilities are deleted (exceptnon-erasable liabilities).
In situations where the debtor fails to comply with the discharge plan or if there are any significant restrictions on the execution of the discharge plan, the proceedings may be terminated without the discharge of the undertaking. The final decision on the completion of the insolvency proceedings of a natural person shall be taken by the court on the basis of an application submitted by the debtor, creditor or administrator.
If, during the period of the discharge procedure, the debtor loses his employment and cannot find another or has become insolvent, the court may halve the debtor's payments to creditors provided for in the discharge plan for a period of up to one year. This option is given once to each debtor.
! You will find information on the forms to be submitted to the courthere.
During the settlement process, a certain amount of money from the debtor's income will be diverted to the debt. The debtor has an obligation to redirect one third of his or her income (the amount of income to be transferred may not be less than one third of the minimum monthly salary specified in the State prior to payment of taxes) in accordance with the court's approved discharge plan.
The maturity of the obligation depends on the debtor's expected income during the discharge procedure and the amount to be covered by the obligation according toCriteria specified in Section 155 of the Law on Insolvency. After the end of the process, the person is re-insured and the person is relieved of his or her outstanding obligations (other than unerasable liabilities).
A person may refer to his or her questions regarding the insolvency proceedings of a natural person by submitting an applicationInsolvency Control Service.
The application may be submitted byE-addressesor, withsecure electronic signaturesigned by sending the application email@example.com.
Also the administrator, at the request of the debtor, for remuneration (which does not exceed payment fornational legal aidlegal advice - provision) may provide legal assistance in relation to the insolvency proceedings of a natural person (if necessary, amendments to the plan for the extinguishing of liabilities of a natural person shall also be drawn up).
As part of the insolvency proceedings of a legal person, creditors' claims are covered from the debtor's property in order to facilitate the fulfilment of the debtor's obligations.
Who may ask to initiate a legal person's insolvency proceedings
Opening of insolvency proceedings of a legal personInsolvency Lawin certain cases, both the debtor and the debtor's creditors may be requested (includingRegulation 2015/848the determined administrator of the insolvency proceedings).
The debtor has an obligation to submit an application for insolvency proceedings of the legal person without delay in the following cases:
The creditor has the right to file an application for insolvency proceedings if:
Filing of an application for insolvency proceedings of a legal person
The insolvency proceedings of a legal person may be initiated by submitting an application for insolvency proceedings of a legal person to a district (city) court following the legal address of the debtor. The application for insolvency proceedings differs depending on whether you are submitting an application for insolvency proceedings as a creditor or as a debtor.
Both the debtor and the creditor, when submitting an application for insolvency proceedings, haveto be lodgedcountrylevy. The document attesting the performance of the payment of the State fee must be attached to the application for insolvency proceedings.
In order to file an application for insolvency proceedings, the legal person's insolvency proceedings must also be paiddeposittwominimum monthly salaryto the extent. It is the amount of money paid by the applicant for insolvency proceedings. The deposit shall ensure the financing of the insolvency proceedings of the legal person if it is revealed during the proceedings that the debtor himself has no property or the property is less than the amount of the deposit, and no one intends to finance the proceedings. If the insolvency proceedings of the legal person are not declared or financed from the debtor's funds,deposit to be repaid to the applicant(if the barriers specified in the law have not entered).
In declaring the insolvency proceedings of a legal person, the court shall appoint an insolvency practitioner (administrator). The administrator shall take full possession of the debtor during the insolvency proceedings of the legal person and the administrator shall haveArticle 64(1) of the Law on Insolvencythe designated powers, and
Article 65those obligations. Information on administrators and insolvency proceedings can be found at:in the register of insolvency.
If the debtor has any of thecharacteristics of the insolvency proceedings of a legal person, the court will establish insolvency and declare the insolvency proceedings of the legal person and appointadministrator. An application for insolvency proceedings may be filed by the debtor himself or by the creditor. On sitemanas.tiesas.lvyou can keep track of your submissions and cases.
After the declaration of the insolvency proceedings:
If, within the framework of insolvency proceedings, it is necessary to sell real estate at auction, the auction may be performedon the website of electronic auctions. The auction shall be organised by an administrator, the debtor himself shall not sell the property during the insolvency proceedings. The site can follow auctions, search and promise for real estate. More about using a site, readizsoles.ta.gov.lv.
At the end of the process, the administrator shall transfer to the State Archives the debtor's documents, which have previously been received from the debtor's representative by means of the Transfer-Acceptance Act. On the fact that documents are transferred or not handed overNational Archives of Latviaissue a statement. To get it, you can use the “Issuance of a statement regarding the transfer/non-transfer of the documents of a merchant or association/foundation in storage in the National Archives of Latvia and the co-ordination of the storage site of other documents in the case of liquidation thereof”.
Rights of employees
An employee becomes a creditor within the framework of the employer's insolvency proceedings. During the month from the date ofin the register of insolvencyan entry has been made regarding the insolvency of the employer, the creditor must submit a claim to the administrator of the particular process. A claim may also be filed within six months of the date on which that entry has been made in the register, but not later than the date on which the plan for satisfying creditors' claims has been drawn up, but in such case the creditor will lose his voting rights at the creditors' meeting.
If insolvency proceedings are declared to the employer, the employeeaccording to the Law on the Protection of Employees in the Event of Employer Insolvencythe funds of the employee claims guarantee fund may be receivedsuch limited costs:
Mandatory State social insurance contributions and income tax payments related to the satisfaction of the claims referred to in the colder, if the employer has not performed them.
A decision on the satisfaction of the claims of insolvent employers shall be takenInsolvency Control Service. On the other hand, the employees' claims are accepted, verified and compiled by the administrator, who also submits them to the Insolvency Control Service.
Learn more about action in cases where the employer fails to pay due due due due due to the Insolvency Control Serviceinformation material.
The legal protection process allows the debtor to restore his or her ability to settle his or her obligations if the debtor is in financial trouble or is deemed to be in it. The debtor is not required to file an application. This will not help to restore solvency if the debtor does not have a clear plan for restructuring his business.
The initiation of the proceedings may be requested:
The initiation of proceedings must be brought before the court. The legal protection process is a voluntary choice of the debtor.
A legal protection proceeding case shall be initiated by a court on the basis of a debtor's application, except where:
Following a decision of the court on the initiation of a judicial protection proceedings:
In order to file an application for redress before the court,to paycountrylevy. If the application for redress is submitted for the second time in a year, the debtor will also have to make a deposit contribution for the legal person's insolvency proceedings of twominimum monthly salaryto the extent.
Debtor within two months (possiblemonthly extension) develop a plan of process measures for the recovery or maintenance of solvency, which shall be transmittedfor matchingfor all vendors. The plan may be developed by a debtor himself or a hired specialist – a lawyer, an undertaking providing services related to insolvency or a financial and accounting professional. Information on the legal protection process will be available at:in the register of insolvency.
The debtor's activities under the plan shall be monitored during the proceedings by a person independent of the debtor who is chosen by a majority of creditors, the person supervising the legal protection process.
In the event of a debtor failing to comply with, or failing to comply with, a judicial protection plan, and failure to comply with the debtor'sInsolvency Lawthe limits of action imposed, the insolvency proceedings of the legal person shall be declared. On the other hand, if the debtor complies with the plan, the restrictions on action and the use of the method applied in this process cease and the debtor continues his business.
Out-of-court redress process
The out-of-court legal protection process is a form of judicial redress, but in this case the debtor already draws up and harmonises a plan of measures with creditors before referring to the court. The debtor shall submit the plan agreed with the creditors to the court at the same time as the application to initiate the proceedings. The commencement of proceedings may be requested by legal persons, partnerships, individual merchant, a person registered in a foreign state who performs permanent economic activity in Latvia, and a producer of agricultural products. This process is suitable for undertakings whose financial problems do not require an immediate solution, and it is sufficient time to prepare a plan of procedural measures and to align it with creditors before going to court.
Payment of tax debts
Tax legislation provides for a number of options, although it would make it easier for natural and legal persons who have incurred tax debts to pay tax debts voluntarily.
In order to facilitate the voluntary payment of tax debts, the legislation provides for a number of options:
When choosing the most appropriate payment solution, the taxpayer must take into account the reason for the occurrence of the tax debt, the duration of its existence and whether the debt recovery operations have already been initiated. Read more about the available optionsOn the SRS website.
Credit register and credit information offices
Credit registerthere is a national information system established and maintained by the Bank of Latvia, in which information regarding the credit obligations of natural and legal persons, the guarantees received and provided and the late payments allowed by them is collected.Credit Information - My Latvija.lvandCredit register electronic service siteyou may request an overview of the liabilities that will show information about your existing liabilities (received credits and guarantees) and the guarantees provided, as well as the liabilities that have expired over the last 10 years.
The information in the Credit Register shall include the members of the Credit Register, which shall be all credit institutions and credit institution-related companies, which shall be credited, credit institutions, insurance companies, AS “Development Finance Institution ALTUM” and the Treasury.
Personal credit information can also be obtainedcredit Information Officein the database maintained.
Out-of-court debt restructuring in Latvia
Before an insolvency proceeding is brought before the court, the economic operator (debtor) and creditors in financial difficulty have the possibility to carry out a mutually harmonised debt restructuring or out-of-court debt restructuring, which will result in both parties seeking an agreement to change the conditions for repayment of debt by allowing the debtor to continue his business.
Read more in the informative materialGuidelines "Extraordinary debt restructuring in Latvia".
Small and medium-sized enterprises in Latvia that face or may soon face financial difficulties can help to address these difficulties in a timely and proactive manner.Good practice guidelines in the decision-making process for firms in financial difficulties.
When authenticating, I agree and undertake to comply with the rules for the use of the electronic identification solution.
Thank you for using Latvija.lv workplace!Please close this browser window! If you have any comments you can send it to firstname.lastname@example.org.
Your session will expire in