International institutions with authority in the matter of insolvency

• Author: Bogdan Radu
• Position: University, Bucharest - Romania
• Pages: 190-195

AGORA International Journal of Juridical Sciences, www.juridicalj ournal.univagora.ro

ISSN 1843-570X, E-ISSN 2067-7677

No. 4 (2013), pp. 190-195

190

INTERNATIONAL INSTITUTIONS WITH AUTHORITY IN THE

MATTER OF INSOLVENCY

B. Radu

Bogdan Radu

Faculty of Judicial and Administrative Sciences

“Dimitrie Cantemir” Christian University, Bucharest, Romania

*Correspondence: Bogdan Radu, “Dimitrie Cantemir” Christian University, 176 Splaiul

Unirii, 4 District, Bucharest, Romania

E-mail: radubogdangabriel@yahoo.com

Abstract

The article aims at presenting the international context of the ongoing phenomenon of

acute imposibility of debt paying, with which the economic environment all around the world

has been dealing with for the past 5 years, more precise the international organisations that

cooperate or help with the development of insolvency laws (including crossborder insolvency

laws) or principles that should govern an insolvency law for a convergence towards a more

efficient and predictable insolvency procedure. The study isn’t concerned with the

international professional associations, nongovernmental international organisations, legal

subjects of the national law under which they came to be. Lastly there will be presented topics

of interest to be considered together with points of action.

Key words: insolvency, bankruptcy, international organisations, UN, UNCITRAL,

model law, EU, Council Regulation (EC) No 1346/2000.

Introduction

Felix qui nihil debet (happy is the one who owes nothing) – Beside the fact that it

seems to be a Latin truism, in the current economical state of society, the absence of debt

remains a desideratum. It should not necessarily be the worst element in a debtor’s patrimony.

If it is controlled, it may become an impulse, a real fuel for a fruitful mechanism allowing to

cover the needs and reach the socio-economical aspirations of each person. The danger

emerges when the assets succumb to the level of debt in an uncontrolled, irresponsible and

edgy way.

“Bankruptcy comes from the word fallere, which means to cheat. In roman law,

bankruptcy embodied a procedure called venditio bonorum that manifested itself by cessating

the activity of the trader, confiscating and selling it’s goods. In the small italian cities, the

bankrupt merchants were considered felons. In 1673 the insolvency proceedings are regulated

by the Colbert Ordinance, and in 1807 they are included in the french Commercial Code”.

1

The domino effect produced worldwide by the financial crises has started many

insolvency and crossborder insolvency proceedings. This is not an ended phenomenon since

the affected countries are still looking for legislative solutions for equilibrating the internal

market.

With this occasion, the mechanisms available to the creditors for recovering the claims

from other national jurisdictions in a term as short as possible, were submitted to real

challenges and the positive aspect consists of a better understanding of the weak points, their

disadvantages and the starting of the works for improving and completing them. A current

1

Dumitru Mazilu, International Comerce Law. General consideratio ns, 7-th edition, Lumina Lex Publishing

house, Bucharest, 2008, p. 217; For other details, Ana Birchall, Insolvency proceedings. Judicial reorganisation

and the liquidation proceeding, 3-rd edition, Universul Juridic P ublishing house, Bucharest, 2010;