Bankruptcy and Enforcement Procedures during COVID-19 Crisis
Bankruptcy and Enforcement Procedures during COVID-19 Crisis
The Government of the Republic of North Macedonia adopted measures for postponement of enforcement procedures and bankruptcy procedures, each shortly elaborated below.
1. Enforcement procedures
The application of the Enforcement Law is suspended until 30 June 2020. The enforcement officers are obliged to stop taking any enforcement action except:
- in cases of claims based on legal support;
- allocating the funds received on their special accounts provided that the legal requirements are met;
- actions that follow the collection of the funds from the debtor, via successful public biddings or direct settlement sales;
- receiving request for enforcement and electronic recording of such requests;
- preparation of requests for data and information in order to examine the economic condition of the debtor, as well as electronic submission to the appropriate institutions;
- preparing order for enforcement against real estate and electronic submission to the public book of real estates for pre-registration of the order;
- preparation of order for prohibition of disposal and encumbering the securities and electronic submission to the Central Securities Depository;
- in enforcement procedures, initiated until 31 March 2020, on bank account’s receivables of natural persons;
- in enforcement procedures, initiated until 31 March 2020, on available funds on legal entity’s account(s) with holders of payment operations; and
preparing and submitting of conclusion for stopping the enforcement procedure, if the debtor has paid the debt.
Different types of social and educational payments are exempted from the enforcement procedures until 30 June 2020, as well as funds paid as financial support or subvention to the legal entities and natural persons for surpassing the consequences COVID-19. In such a case, the debtor is entitled to electronically file a request for postponement of the enforcement from such funds, upon which the enforcement officer notifies the commercial banks for the postponement until 30 June 2020 without jeopardizing the priority of the enforcement.
2. Bankruptcy procedure
Bankruptcy procedures and preliminary procedures will not be initiated against debtors that meet the requirements for initiating a bankruptcy procedure or preliminary procedure during the state of emergency, as well as three months after the termination of the state of emergency. In addition, all initiated proceedings, including the preliminary procedure for initiating a bankruptcy procedure and initiating a bankruptcy procedure, are postponed during the state of emergency, as well as three months after the termination of the state of emergency.
The Government of the Republic of North Macedonia adopted measures for postponement of enforcement procedures and bankruptcy procedures, each shortly elaborated below.
1. Enforcement procedures
The application of the Enforcement Law is suspended until 30 June 2020. The enforcement officers are obliged to stop taking any enforcement action except:
- in cases of claims based on legal support;
- allocating the funds received on their special accounts provided that the legal requirements are met;
- actions that follow the collection of the funds from the debtor, via successful public biddings or direct settlement sales;
- receiving request for enforcement and electronic recording of such requests;
- preparation of requests for data and information in order to examine the economic condition of the debtor, as well as electronic submission to the appropriate institutions;
- preparing order for enforcement against real estate and electronic submission to the public book of real estates for pre-registration of the order;
- preparation of order for prohibition of disposal and encumbering the securities and electronic submission to the Central Securities Depository;
- in enforcement procedures, initiated until 31 March 2020, on bank account’s receivables of natural persons;
- in enforcement procedures, initiated until 31 March 2020, on available funds on legal entity’s account(s) with holders of payment operations; and
preparing and submitting of conclusion for stopping the enforcement procedure, if the debtor has paid the debt.
Different types of social and educational payments are exempted from the enforcement procedures until 30 June 2020, as well as funds paid as financial support or subvention to the legal entities and natural persons for surpassing the consequences COVID-19. In such a case, the debtor is entitled to electronically file a request for postponement of the enforcement from such funds, upon which the enforcement officer notifies the commercial banks for the postponement until 30 June 2020 without jeopardizing the priority of the enforcement.
2. Bankruptcy procedure
Bankruptcy procedures and preliminary procedures will not be initiated against debtors that meet the requirements for initiating a bankruptcy procedure or preliminary procedure during the state of emergency, as well as three months after the termination of the state of emergency. In addition, all initiated proceedings, including the preliminary procedure for initiating a bankruptcy procedure and initiating a bankruptcy procedure, are postponed during the state of emergency, as well as three months after the termination of the state of emergency.
