Bankruptcy begins when the court declares the debtor bankrupt. An announcement on the beginning of bankruptcy is published in the Official Gazette and is recorded in the bankruptcy register of the Ministry of Justice, the trade register and credit information registers.
After the bankruptcy begins, the debtor loses authority over the assets that belonged to the bankruptcy estate.
The court appoints an administrator to manage the administration of the bankruptcy estate. The administrator must possess the ability, skills and experience required for the duty, and must be otherwise suitable for the duty. In practice, attorneys or other lawyers act as estate administrators.
Cancellation of bankrupty
Bankruptcy may be ordered to be reversed on the joint petition of the debtor and the creditor who filed the bankruptcy petition. Reversal must be filed for within eight days after the debtor has been declared bankrupt. There must be a valid reason for reversal, such as the payment of a receivable to a creditor.