The legal effects caused by Government’s Emergency Ordinance no. 88/2018 regarding the changes in insolvency procedures and their impact on current and future insolvency procedures

Abstract

Insolvency procedures are rather frequent in Romanian courts and this type of procedure was subject to debate over time; it was also the subject of recent legal amendments, in the year 2014 and later, in 2018. Most insolvency procedures contain budgetary debts, which usually benefit from preferential treatment as opposed to the other categories of debt. By studying the latest legislative changes, we must observe the fact that the lawmaker was preoccupied with protecting this category of debts and ensuring a high degree of payment of these debts. However, we will analyze the extent to which this legislative amendment will affect the payment of budgetary debts and the legal effects in regard to the other categories of debts.