Šajā tīmekļa vietnē tiek izmantotas sīkdatnes. Turpinot lietot šo vietni, jūs piekrītat sīkdatņu izmantošanai. Uzzināt vairāk.
Teksta versija
LEGAL ACTS OF THE REPUBLIC OF LATVIA
home
 
The translation of this document is outdated.
Translation validity: 01.03.2015.–22.12.2015.
Amendments not included: 21.12.2015., 22.12.2016., 31.05.2018.
Text consolidated by Valsts valodas centrs (State Language Centre) with amending laws of:

14 October 2010 [shall come into force from 1 November 2010];
22 November 2011 (Constitutional Court Judgment) [shall come into force from 24 November 2011];
23 February 2012 [shall come into force from 1 March 2012];
20 April 2012 (Constitutional Court Judgment) [shall come into force from 24 April 2012];
9 July 2013 [shall come into force from 7 August 2013];
12 September 2013 [shall come into force from 1 January 2014];
9 July 2013 [shall come into force from 7 August 2013];
12 September 2013 [shall come into force from 1 January 2014];
25 September 2014 [shall come into force from 1 January 2015];
18 December 2014 [shall come into force from 1 January 2015];
19 February 2015 [shall come into force from 1 March 2015];
21 December 2015 (Constitutional Court Judgment) [shall come into force from 23 December 2015].

If a whole or part of a section has been amended, the date of the amending law appears in square brackets at the end of the section. If a whole section, paragraph or clause has been deleted, the date of the deletion appears in square brackets beside the deleted section, paragraph or clause.

The Saeima1 has adopted and
the President has proclaimed the following law:

Insolvency Law

Division A
General Provisions

Chapter I
The Purpose of the Law and Terms Used in the Law

Section 1. Purpose of this Law

The purpose of this Law is to promote the honouring of the obligations of a debtor in financial difficulties and, where possible, the renewal of solvency, applying the principles and lawful solutions specified in the Law.

Section 2. Scope of Application of this Law

(1) This Law shall apply to a legal person (except the entirety of property of an estate) or to a natural person.

(2) In respect of the State, local government or other legal person governed by public law the insolvency proceedings and legal protection proceedings specified in this Law shall not be applied.

(3) A separate law shall regulate the insolvency proceedings of credit institutions.

(4) The provisions of this Law shall be applicable to the insolvency proceedings of those financial and capital market participants, the supervision of whose activities in accordance with the requirements of laws and regulations is performed by the Financial and Capital Market Commission, insofar as it is not laid down otherwise by the special legal norms governing the activities of the financial and capital market participants.

(5) The provisions of this Law shall be applicable to the insolvency proceedings of the subject of a financial security contract, observing the exceptions and additional provisions referred to in the Financial Security Law.

Section 3. Legal Protection Proceedings

(1) Legal protection proceedings are an aggregate of measures of a legal nature, whose purpose is to renew the ability of a debtor to settle their debt obligations, if a debtor has come into financial difficulties or expects to do so.

(2) Legal protection proceedings shall commence from the day when a matter of legal protection proceedings are initiated in court and shall take place until the day when the court takes a decision to terminate the legal protection proceedings.

Section 4. Insolvency Proceedings of a Legal Person

(1) The insolvency proceedings of a legal person are an aggregate of measures of a legal nature, within the scope of which the claims of creditors are settled from the property of a debtor, in order to promote the honouring of the debtor's obligations.

(2) The insolvency proceedings of a legal person shall be commenced from the day when the court has proclaimed insolvency proceedings by the adjudication and shall take place until the day when the court takes a decision to terminate the insolvency proceedings.

Section 5. Insolvency Proceedings of a Natural Person

(1) The insolvency proceedings of a natural person are an aggregate of measures of a legal nature whose aim is to satisfy the claims of creditors as much as possible from the property of a debtor and provide the opportunity for a debtor whose property and income is insufficient to cover the entire obligations to be released from the obligations which have not been honoured and to restore solvency.

(2) The insolvency proceedings of a natural person shall be commenced from the day when the court has proclaimed insolvency proceedings by the adjudication and take shall place until the day when the court takes a decision to terminate the insolvency proceedings.

Section 6. Principles of Legal Protection Proceedings, Insolvency Proceedings of a Legal Person and Insolvency Proceedings of a Natural Person

The general principles of legal protection proceedings, the insolvency proceedings of a legal person and insolvency proceedings of a natural person (hereinafter in this Section - proceedings) shall be applied as follows:

1) principle of the preservation of rights - the rights of creditors acquired prior to proceedings shall be observed during the proceedings. The restriction of rights of creditors specified within the scope of the proceedings may not be greater than is necessary for achieving the objective of the respective proceedings;

2) principle of creditor equality - creditors shall be given equal opportunities to participate in proceedings and receive satisfaction of their claims in accordance with the obligations which they have established with the debtor prior to the commencement of proceedings;

3) the principle of not allowing arbitrariness - a creditor and debtor may not perform individual activities which cause harm to the interests of the creditors in general;

4) principle of honouring of obligations - measures which allow the obligations undertaken by a debtor to be honoured in a greater amount shall be applicable within the scope of proceedings;

5) principle of effectiveness of proceedings - such measures which allow the objective of the proceedings to be achieved in a most complete manner with the least resources shall be applicable within the scope of proceedings;

6) principle of quick turnover - the task of the proceedings is to maintain a commercially lawful quick turnover. The sale of the property of a debtor shall be performed in order to ensure the return thereof to commercially lawful circulation as quickly as possible;

7) principle of transparency - in order to ensure credibility, information regarding proceedings must be accessible to all persons involved in the proceedings, thereby promoting the observation of the interests of these persons and the achievement of the objectives of the proceedings. An exception is information the unrestricted disclosure of which might harm the lawful interests of a debtor or a creditor;

8) principle of good faith - persons involved in proceedings shall use their rights and fulfil their duties in good faith. A debtor and creditor may not use the proceedings in order to make a living unfairly.

Section 7. Secured Creditor

(1) A secured creditor is a creditor whose right to claim against the debtor or a third person is secured by a commercial pledge, or mortgage on the property of the debtor registered in the Land Register or Ship Register.

(2) A secured creditor shall be considered to be a non-secured creditor for the unsecured part of the claim, except the case when the security is for a liability of a third person. A secured creditor is entitled, during any stage of the proceedings, to decline from the security for the right to claim in full or partly, by making relevant amendments to public registers.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 8. Non-secured Creditor

A non-secured creditor is a creditor whose right to claim is not secured with the means of security referred to in Section 7, Paragraph one of this Law.

Section 9. Administrator of Insolvency Proceedings

(1) An administrator of insolvency proceedings is a natural person who has acquired a certificate of an administrator of insolvency proceedings and who has the rights and duties specified in this Law. As regards the official activities, an administrator of insolvency proceedings shall be considered as equivalent to public officials.

(2) A liquidator, within the meaning of Council Regulation (EC) No 1346/2000 of 29 May 2000 on insolvency proceedings (hereinafter - Council Regulation No 1346/2000) also has the rights and duties of an administrator of insolvency proceedings specified in this Law and other laws and regulations.

[25 September 2014 / Section 2 of the Law "Amendments to the Insolvency Law" of 25 September 2014 where Paragraph one has been supplemented with a sentence in the following wording: "As regards the official activities, an administrator of insolvency proceedings shall be considered as equivalent to public officials", insofar as failing to ensure occupational guaranty to be able to retain the selected occupation in respect of insolvency administrators who are advocates at the same time, has been recognised as non-conforming to the first sentence of Section 106 of the Constitution of the Republic of Latvia by the Constitution Court judgement of 21 December 2015 which enters into effect on 23 December 2015.]

Section 10. Characteristics of the Application of the Norms of the Law

The provisions applicable to legal persons shall be applied to natural persons and partnerships, unless it is laid down otherwise in this Law.

Section 11. Costs of Legal Protection Proceedings, Insolvency Proceedings of a Legal Person and Insolvency Proceedings of a Natural Person

The costs of legal protection proceedings, insolvency proceedings of a legal person and insolvency proceedings of a natural person are the remuneration of the administrator of insolvency proceedings and expenses which arise in order to ensure the lawful and effective course of legal protection proceedings, the insolvency proceedings of a legal person or the insolvency proceedings of a natural person.

Section 12. Insolvency Register

(1) In order to ensure the public awareness of legal protection proceedings, the insolvency proceedings of a legal person and the insolvency proceedings of a natural person, the responsible authority shall organise an Insolvency Register, in which the information specified in this Law shall be included. The Insolvency Register is accessible to everyone free of charge, and the entries therein shall be publicly reliable.

(2) Information regarding the administrator of insolvency proceedings, the course of the legal protection proceedings, the insolvency proceedings of a legal person and the insolvency proceedings of a natural person shall be entered into the Insolvency Register.

Chapter II
Administrator of Insolvency Proceedings

Section 13. Requirements and Restrictions Set Out for the Administrator of Insolvency Proceedings

(1) A natural person with the capacity to act may be the administrator of insolvency proceedings (hereinafter - administrator):

1) who has attained the age of 25 years;

2) who has received a State-recognised education document concerning the acquisition of a second level higher vocational education in jurisprudence and acquired the qualification of a lawyer or has received a State-recognised education document concerning the acquisition of a higher academic education in jurisprudence and acquired an academic degree;

3) who is fluent in the official language at the highest level;

4) who has at least three years work experience in the profession of a lawyer or profession comparable thereto after acquisition of the education and qualification referred to in Paragraph one, Clause 2 of this Section.

(2) An administrator may not be a person:

1) who does not conform with the requirements laid down in Paragraph one of this Section;

2) if from the day of the expiry of this person's certificate in accordance with Section 17, Paragraph one, Clause 6 or Paragraph two of this Law, five years have not passed;

3) who has had their administrator certificate annulled;

4) who has been found guilty of committing an intentional criminal offence or for whom criminal proceedings for committing an intentional criminal offence have been terminated for reasons other than exoneration of the person;

5) who has had insolvency proceedings of a natural person proclaimed within the last five years;

6) who has been a member of the administrative body of a legal person and has caused the insolvency proceedings of this legal person due to the neglect thereof or deliberately;

7) who, based on the decision in a disciplinary matter, has been excluded from the number of sworn advocates or the assistants thereto, released from the office of the public prosecutor or discharged from the office of a sworn bailiff, the office of the assistant thereto or the office of a judge, until five years have passed from the day when the decision of the disciplinary matter has entered into effect.

Section 14. Professional Organisation of Administrators

(1) The functions of the professional organisation of administrators shall be implemented by the Association of the Certified Administrators of Insolvency Proceedings of Latvia (hereinafter - Association of Administrators).

(2) The Association of Administrators shall perform the following State administrative tasks in accordance with the procedures laid down in this Law:

1) train administrator applicants;

2) certify administrators;

3) organise the improvement of the professional qualifications of administrators;

4) perform the re-certification of administrators;

5) administer the registers of issued, extended, annulled and terminated certificates and duplicate certificates;

6) terminate the operation of administrator certificates and annul them;

7) suspend the operation of the administrator's certificate.

(3) When performing State administrative tasks, the Association of Administrators has the following rights:

1) to request from the administrator and receive from him or her the necessary information and appropriate documents;

2) to request from the institutions and persons involved in the legal protection proceedings and insolvency proceedings and receive from them information and documents related to the activities of an administrator;

3) to request from State and local government institutions and receive from them free of charge the information necessary for the performance of the functions of the Association of Administrators related to the activities of administrators.

(4) The Cabinet shall determine the price list for paid services provided within the scope of the State administrative tasks of the Association of Administrators.

(5) The Association of Administrators, when performing the tasks referred to in Paragraph two of this Section, is entitled to issue administrative provisions.

(6) The Association of Administrators, when performing the tasks referred to in Paragraph two of this Section, is functionally subordinate to the Insolvency Administration.

(7) The Association of Administrators shall draw up and approve a professional code of ethics for administrators.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 15. Training of Administrator Applicants

(1) Attendance at the training course of administrator applicants is a pre-condition for taking the examination of administrators.

(2) The training of administrator applicants and issuance of certificates shall be performed by the Association of Administrators.

(3) The Cabinet shall determine the training programme for administrator applicants and the procedures by which a certificate shall be issued for attending the training course, as well as the term of validity of this certificate.

Section 16. Certification and Re-Certification of an Administrator

(1) An administrator's certificate is a document which certifies the professional qualification of an administrator and gives a person the right to undertake and fulfil the duties of an administrator.

(2) A person who complies with the requirements of Section 13, Paragraph one of this Law and who has attended the training course of administrator applicants, has the right to undergo the certification of an administrator.

(3) The Association of Administrators shall issue an administrator's certificate to a person who has successfully fulfilled all the requirements of the certification. The term of validity of an administrator's certificate shall be two years. The term of validity of an administrator's certificate may be extended by performing re-certification.

(4) An administrator has a duty to regularly improve his or her qualification and perform professional activities in accordance with the procedures and to the extent laid down in laws and regulations. The Association of Administrators shall evaluate the professional activity and qualification of an administrator once every two years, performing re-certification.

(5) The Cabinet shall determine the procedures for certifying administrators and the procedures for improving the qualification of an administrator and for re-certification.

Section 17. Suspension and Termination of the Operation of an Administrator's Certificate and Its Annulment

(1) The operation of an administrator's certificate shall terminate on the expiry of its validity or by taking a decision to terminate it in the following cases:

1) the administrator has been convicted of an intentional criminal offence;

2) the administrator's capacity to act has been restricted by a court judgement;

3) the administrator has submitted a submission regarding termination of the operation of the administrator's certificate;

4) insolvency proceedings of a natural person have been proclaimed for the administrator;

5) the administrator has not been re-certified in accordance with specified procedures;

6) the court has removed the administrator on the grounds of Section 22, Paragraph two, Clause 7 of this Law;

7) in the event of death of the administrator.

(11) The operation of an administrator's certificate shall be suspended by taking a decision on its temporary suspension for the time period when the administrator is in the service of a State institution of direct or indirect administration, a derived public entity, another State institution or State (local government) capital company, or for the time period of long-time absence of the administrator due to illness, pregnancy, maternity leave or child-care leave.

(2) A decision to terminate the operation of an administrator's certificate may be taken if the court has removed the administrator from the fulfilment of his or her duties for violations of laws and regulations twice during the last two years of the operation of the administrator's certificate.

(21) The decision to terminate the operation of an administrator's certificate may be taken if the administrator has severely violated the provisions of the professional code of ethics for administrators.

(3) A decision to annul an administrator's certificate shall be taken if the administrator has provided false information during the process of certification.

(31) The decision to terminate the operation of an administrator's certificate shall be taken if during the past two years of operation of the administrator's certificate the Insolvency Administration has established violations of laws and regulations in the administrator's activity on two occasions.

(4) The Association of Administrators shall perform the suspension and termination of the operation of an administrator's certificate and its annulment.

(5) The Cabinet shall determine the procedures for suspending and terminating the operation of an administrator's certificate and for annulling it.

[25 September 2014; 18 December 2014 / See Paragraph 34 of Transitional Provisions]

Section 18. Publicity of the Activity of an Administrator

(1) The responsible authority shall enter the following information regarding an administrator in the Insolvency Register:

1) the given name and surname of the administrator;

2) the number of the administrator's certificate;

3) the date of issue of the administrator's certificate;

4) the address of the location of the administrator's practice;

5) the telephone number of the administrator;

6) the electronic mail address of the administrator;

7) the date of suspension, termination of the operation of an administrator's certificate or the date of its annulment;

8) the date of the making of the entry.

(2) The Association of Administrators shall ensure access to the information referred to in Paragraph one, Clauses 1, 2, 3, 4, 5, 6, and 7 of this Section to the responsible authority which makes the entries in the Insolvency Register.

[18 December 2014]

Chapter III
Appointment or Removal of an Administrator

Section 19. Appointment of an Administrator in Legal Protection Proceedings, Insolvency Proceedings of a Legal Person and Insolvency Proceedings of a Natural Person

(1) An administrator shall be appointed by court in legal protection proceedings, insolvency proceedings of a legal person and insolvency proceedings of a natural person in accordance with the procedures laid down in this Law and the Civil Procedure Law.

(2) The Cabinet shall determine the procedures by which the Insolvency Administration shall choose and recommend candidates to the court for the office of administrator. The proposal of the Insolvency Administration shall be of a recommendatory nature and may not be contested or appealed in accordance with the procedures laid down in the Administrative Procedure Law.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 20. Restrictions in Fulfilling Administrator's Duties

(1) An administrator may not undertake and fulfil the duties of an administrator in legal protection proceedings or in insolvency proceedings in the following cases:

1) the period of validity of the administrator's certificate has expired, its operation has been terminated or the certificate has been annulled;

2) the administrator is a suspect, accused or a defendant in criminal proceedings related to his or her actions during the specific legal protection proceedings, the insolvency proceedings of a legal person or the insolvency proceedings of a natural person;

3) the administrator is recognised to be an interested party with respect to the debtor in accordance with the provisions of this Law;

4) the administrator is in a situation of conflict of interests with respect to the debtor or creditor in accordance with the provisions of this Law;

5) the administrator has been in employment legal relationships with the debtor during the last five years prior to the day of the proclamation of the relevant insolvency proceedings;

6) the debtor has the right to claim against the administrator or the administrator has the right to claim against the debtor and the administrator or debtor has not specifically refused such a right;

7) the administrator has a personal interest in the matter of the legal protection proceedings, the matter of the insolvency proceedings of a legal person or in the matter of the insolvency proceedings of a natural person or there are other circumstances causing justified doubts regarding the impartiality thereof.

(2) If any of the cases referred to in Paragraph one of this Section apply to the administrator, he or she shall immediately inform the court and the Insolvency Administration thereof.

Section 21. Restrictions in the Fulfilment of Administrator's Duties in the Situation of a Conflict of Interests

(1) The administrator is in the situation of a conflict of interests if he or she fulfils activities related to administrator's duties in specific legal protection proceedings, the insolvency proceedings of a legal person or the insolvency proceedings of a natural person in which he or she, his or her relatives or counterparties are or might be personally or financially interested, or if he or she fulfils activities related to administrator's duties in respect of a debtor the shareholder, stockholder, partner or the member of supervisory, control or executive body of which is the administrator himself or herself or a relative thereof.

(2) A person who is married to, is in relation to or affinity to the administrator to the second degree is considered to be a relative for the application of the restrictions specified in Paragraph one of this Section.

(3) The administrator is not in a situation of a conflict of interests if in business relations with the counterparty referred to in Paragraph one of this Section the administrator is in the capacity of a recipient of goods or services delivered by the counterparty as part of its regular economic activity, and there is no dispute about the transaction and the administrator does not enjoy any specific favours from the transaction.

(4) The administrator shall notify all creditors and the Insolvency Administration about the transaction counterparties and provide a justification for the fact that he or she in accordance with the provisions of Paragraph one of this Section is not in a situation of a conflict of interests.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 22. Removal of an Administrator

(1) An administrator shall be removed by the court upon its own initiative, by application of the Insolvency Administration or the administrator or at the proposal of the creditors' meeting.

(2) An administrator shall be removed if:

1) the restrictions specified in Section 20 of this Law apply in respect thereto;

2) he or she does not comply with the requirements of the laws and regulations governing insolvency;

3) he or she does not execute the court adjudication;

4) he or she does not fulfil the legal obligation imposed by the Insolvency Administration;

5) he or she has resigned from office (Section 23);

6) the creditors' meeting has proposed that the administrator should be removed from specific insolvency proceedings of a legal person or the insolvency proceedings of a natural person, if the administrator has not ensured the effective course of insolvency proceedings;

7) he or she uses his or her powers in bad faith;

8) the operation of the certificate thereof has been terminated or the certificate has been annulled.

(3) If violations have been determined in the activity of the administrator, the administrator shall only be removed from the legal protection proceedings, the insolvency proceedings of a legal person or the insolvency proceedings of a natural person, in which the violations have been determined.

(4) If the operation of an administrator's certificate has been terminated or if an administrator's certificate has been annulled, the Insolvency Administration shall submit an application to the court regarding the removal of the administrator from all legal protection proceedings, the insolvency proceedings of a legal person or the insolvency proceedings of a natural person, to which he or she has been appointed.

Section 23. Resignation of an Administrator from Office

(1) An administrator has the right to resign from office at any time, if due to objective circumstances he or she is unable to fulfil the duties of an administrator.

(2) When resigning from office, an administrator shall submit a justified application to the court regarding the resignation, to which a review of all the activities thereof shall be appended, as well as draft documents and property deeds of delivery and acceptance, concurrently informing the Insolvency Administration thereof.

(3) An administrator shall resign from office if the restrictions specified in Section 20 of this Law apply thereto.

(4) When resigning from office, an administrator shall observe the provisions specified in Section 24 of this Law regarding the change of administrators.

Section 24. Change of Administrators

(1) If an administrator is being removed from office, another administrator shall be appointed in accordance with the procedures laid down in Section 19 of this Law.

(2) If the previous administrator resigns or is removed from office, until the deadline specified by the court which shall not exceed 10 days, the previous administrator shall compile a deed of document and property delivery and acceptance which shall be signed by the previous administrator and the new administrator. A review of the activities of the previous administrator shall be appended to the deed of property delivery and acceptance.

(3) Until the appointment of a new administrator, the previous administrator shall continue to fulfil the duties thereof. After appointment of a new administrator, the previous administrator, in accordance with the procedures laid down in law is responsible for handing over the debtor's documents and property to the new administrator in accordance with the deed of document and property delivery and acceptance.

(4) If the drawing up of a deed of document and property delivery and acceptance and a review of activities is not objectively possible, the new administrator, when commencing the fulfilment of duties, shall draw up a report on the actual situation and notify the creditors thereof in accordance with the procedures laid down in this Law.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 25. Termination of the Duties of an Administrator

The duties of an administrator shall terminate:

1) if the administrator is removed from office;

2) if the legal protection proceedings are being terminated;

3) if the insolvency proceedings of a legal person are being terminated, except the case referred to in Section 35, Paragraph five of this Law;

4) if the insolvency proceedings of a natural person are being terminated;

5) in the event of death of the administrator.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Chapter IV
General Provisions for the Activity of an Administrator

Section 26. General Duties of an Administrator

(1) After receipt of an administrator's certificate, an administrator shall:

1) register with the State Revenue Service as a taxpayer;

2) declare one place of practice with the State Revenue Service and notify the Association of Administrators about it.

(2) An administrator shall ensure the effective and lawful course of legal protection proceedings, insolvency proceedings of a legal person and insolvency proceedings of a natural person, and the achievement of objectives.

(3) An administrator has the following duties:

1) to participate in the court sittings of the matters of legal protection proceedings, the insolvency proceedings of a legal person and the insolvency proceedings of a natural person;

2) to provide information regarding the course of legal protection proceedings, the insolvency proceedings of a legal person and the insolvency proceedings of a natural person to the court, the creditors, the Insolvency Administration and other persons and institutions specified in laws and regulations;

3) to notify the Association of Administrators within five days of a change in the place of practice, electronic mail address, given name or surname;

4) to co-operate with empowered persons and institutions who, in accordance with the laws and regulations of other States have the right to implement their powers in legal protection proceedings, the insolvency proceedings of a legal person or the insolvency proceedings of a natural person;

5) upon request of the Insolvency Administration, to provide a review of the activities thereof, documents and information regarding the course of the legal protection proceedings, the insolvency proceedings of a legal person or the insolvency proceedings of a natural person, in which the administrator has fulfilled or is fulfilling their duties;

6) if the supervision of the activities of a financial and capital market participant is performed by the Financial and Capital Market Commission in accordance with the requirements of laws and regulations, upon the request thereof to provide this Commission with information or a report on the course of the legal protection proceedings of the abovementioned financial and capital market participant or the insolvency proceedings of a legal person;

7) examine complaints about the course of specific legal protection proceedings, the insolvency proceedings of a legal person or the insolvency proceedings of a natural person and provide a reply to the submitter of the complaint within two weeks;

8) provide reports and materials to law enforcement authorities regarding the facts uncovered in legal protection proceedings, the insolvency proceedings of a legal person or the insolvency proceedings of a natural person which may be the grounds for the commencement of criminal proceedings.

(4) An administrator shall ensure that he or she may be reached at the address of the place of practice, using the contact information indicated, as well as the receipt of correspondence addressed thereto (including documents signed by secure electronic signature).

(5) During the insolvency proceedings of a legal person, an administrator shall organise the accounting records of the debtor in accordance with the requirements of laws and regulations. If the Law On Annual Financial Statements is applicable to the debtor, the administrator shall submit to the State Revenue Service a true copy of the annual financial statements and a sworn auditor's report (where required) only in the cases when the administrator has taken a decision to continue the economic activity of the debtor to full or restricted extent.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 27. General Rights of an Administrator

An administrator has the following rights:

1) to request and receive the necessary information from a debtor and the representatives thereof in legal protection proceedings, the insolvency proceedings of a legal person or the insolvency proceedings of a natural person;

2) to request and receive from State and local government authorities, free of charge, the necessary information at the disposal thereof, regarding debtors and the representatives of debtors in legal protection proceedings, the insolvency proceedings of a legal person or the insolvency proceedings of a natural person;

3) to request and receive from other competent persons and authorities the information at the disposal thereof which is related to the course of the legal protection proceedings, the insolvency proceedings of a legal person and the insolvency proceedings of a natural person;

4) to become acquainted with the financial situation and all the documents of a debtor, as well as to request and receive all the documents.

Section 28. Empowerment of an Administrator

(1) An administrator has the right to empower another administrator to perform the duties of an administrator, within the scope of one calendar year for a period of time not exceeding 60 days, in conformity with the restrictions specified in Section 20 of this Law.

(2) An administrator shall submit an application for the empowerment to the responsible authority organising the Insolvency Register, without delay, after issue of the powers specified in Paragraph one of this Section.

Section 29. Liability of an Administrator

(1) An administrator shall be liable for losses caused to the State, the debtor, creditors or other persons due to the fault of the administrator or an authorised representative thereof.

(2) An administrator shall not be liable for the actions of the debtor and previous administrator and transactions concluded prior to his or her commencement of fulfilling the duties of an administrator.

Section 30. Bringing an Action Against an Administrator

(1) An action may be brought against an administrator in court not later than within one year after termination of legal protection proceedings, the insolvency proceedings of a legal person or the insolvency proceedings of a natural person.

(2) If the administrator has caused, through his or her actions, losses to the State, debtor, creditors or other persons, and such is determined through a court judgment in a criminal matter, the general limitation period regarding actions is applicable to actions brought against the administrator.

(3) A creditor or creditors who represent at least 10 per cent of the total recognised amount of the principal debt of the non-secured creditors may bring an action against the administrator in favour of all debtors, if the administrator has caused losses to the debtor through his or her actions.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 31. Security of an Administrator

(1) An administrator shall have security as provided for by this Law, for those cases where he or she by their actions causes losses to creditors or other persons. The security of an administrator is the civil liability insurance of their activities.

(2) The Cabinet shall determine the procedures for the civil liability insurance of the administrator, as well as the minimum insurance amount.

Division B
Legal Protection Proceedings

Chapter V
General Provisions of Legal Protection Proceedings

Section 32. Subjects of Legal Protection Proceedings

(1) Legal protection proceedings shall be applicable to legal persons, partnerships, individual merchants, persons registered in a foreign country who perform permanent economic activity in Latvia, and to the producers of agricultural products (hereinafter in this Division - debtor).

(2) In legal protection proceedings, the producer of agricultural products shall be understood to be a legal person from whose annual income more than 50 per cent on the day of the submission of an application for legal protection proceedings is formed by the revenue from the production and processing of agricultural products. Within the meaning of this Law, the production and processing of agricultural products shall be that which is specified in Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety.

(3) Legal protection proceedings shall not be applicable to the following financial and capital market participants: an insurance company, an insurance brokerage company, a regulated market organiser, an investment brokerage company, a depository, an alternative investment asset management company, an investment management company, a credit union, a credit institution, and a private pension fund.

[9 July 2013]

Section 33. Application for Legal Protection Proceedings and Initiation of a Matter of Legal Protection Proceedings

(1) A debtor shall submit an application for legal protection proceedings to court in accordance with the procedures laid down in the Civil Procedure Law.

(2) A matter of legal protection proceedings shall be initiated in accordance with the procedures laid down in the Civil Procedure Law.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 34. Restrictions in the Initiation of a Matter of Legal Protection Proceedings

(1) A matter of legal protection proceedings may not be initiated, if:

1) the liquidation of the debtor has been commenced in accordance with the procedures laid down in laws and regulations;

2) the debtor has had legal protection proceedings implemented, and terminated in accordance with Section 51, Paragraph four of this Law during the preceding five years;

3) the debtor has had legal protection proceedings implemented, and terminated in accordance with Section 51, Paragraph one of this Law during the preceding four months.

(2) The provision of Paragraph one, Clause 2 of this Section shall not be applicable if the debtor has had the insolvency proceedings of a legal person proclaimed, and an application for legal protection proceedings has been submitted.

Section 35. Appointment of an Administrator to Legal Protection Proceedings

(1) An administrator shall be appointed to legal protection proceedings upon recommendation of a debtor or the Insolvency Administration.

(2) An administrator shall be appointed to legal protection proceedings upon recommendation of a debtor, if the debtor has agreed with the administrator and the majority of the creditors specified in Section 42, Paragraph three of this Law and the administrator candidate has been indicated in the plan of measures of the legal protection proceedings.

(3) If a debtor has not reached the agreement referred to in Paragraph two of this Section, he or she, upon submitting the plan of measures of the legal protection, shall request that the court appoints an administrator. The Insolvency Administration shall recommend a candidate for the office of administrator to the court.

(4) If an administrator is removed during the course of legal protection proceedings, a debtor shall recommend a candidate for the office of administrator within 15 days from the day when a decision is taken to remove an administrator, in conformity with that referred to in Paragraph two of this Section, except the provision regarding the indication of an administrator in the plan of measures of the legal protection proceedings. If an agreement is not reached, the Insolvency Administration shall recommend a candidate for the office of administrator.

(5) In legal protection proceedings which have been proclaimed concurrently with the termination of the insolvency proceedings of a legal person, the duties of an administrator shall continue to be fulfilled by the administrator who has been appointed during the insolvency proceedings of the legal person, if the debtor has not agreed with the creditors on another administrator in accordance with the procedures laid down in this Section.

Section 36. Publicity of a Matter of Legal Protection Proceedings

(1) The responsible authority shall enter the following information in the Insolvency Register regarding a matter of legal protection proceedings:

1) the debtor's firm (name);

2) the debtor's registration number;

3) the debtor's legal address;

4) the date when the matter was initiated, and the name of the court;

5) the date when the court adjudication was rendered regarding the implementation of legal protection proceedings and the plan of measures of the legal protection proceedings was approved, and the name of the court;

6) the given name, surname and certificate number of the administrator appointed to the matter;

7) the given name, surname, certificate number and period of validity of the authorisation of the authorised administrator;

8) the methods specified in the plan of measures of the legal protection proceedings;

9) the time period for the implementation of legal protection proceedings;

10) the date when the court approved amendments to the plan of measures of the legal protection proceedings and the name of the court;

11) the date of termination of legal protection proceedings, the name of the court, and the grounds;

12) the date of the making of the entry.

(2) The information referred to in Paragraph one of this Section may be published also in other registers, information systems, or databases.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Chapter VI
Effects of the Initiation of a Matter of Legal Protection Proceedings

Section 37. Effects of the Initiation of a Matter of Legal Protection Proceedings

(1) The court decision on initiation of a matter of legal protection proceedings has the following effects:

1) a stay of the enforcement of judgments in matters regarding that adjudged, and the recovery of the amount not yet recovered and in matters regarding the honouring of obligations through the court in accordance with the procedures laid down in the Civil Procedure Law;

2) a prohibition for the secured creditor to request the sale of the pledged property of the debtor, except the case referred to in Paragraph two of this Section;

3) a prohibition for the creditor to submit an application for the insolvency proceedings of a legal person;

4) a prohibition to perform the liquidation of a debtor;

5) the suspension of the penalty increment;

6) the suspension of such an interest increment which exceeds the statutory interest, except the cases where the main refinancing operations rate specified by the European Central Bank is above the statutory interest rate; then the main refinancing operations rate specified by the European Central Bank shall apply;

7) the suspension of the late payment charge increment;

8) the suspension of the calculation of the late charges of tax claims.

(2) A secured creditor may request the sale of the pledged property of a debtor, if the prohibition referred to in Paragraph one, Clause 2 of this Section causes significant harm to the interests of this creditor (including the existence of the threat of the destruction of the pledged property, or the value of the pledged property has reduced significantly). The decision to permit the sale of the pledged property of a debtor shall be taken by the court in which the matter of the respective legal protection proceedings has been initiated.

(3) A debtor has a duty to inform the bailiff who is managing the matter regarding the adjudged, and regarding the recovery of amounts not yet recovered from a debtor and matters regarding the honouring of obligations through the court and regarding the initiation of a matter of legal protection proceedings.

(4) A debtor has a duty, upon request of the administrator, to provide him or her in writing with all information regarding the drafting and co-ordination of the plan of measures of the legal protection proceedings without delay, as well as to provide documents supporting the validity of creditors' claims, and to enable on-site inspecting of the economic activity and documents of the debtor.

[12 September 2013; 25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 38. Methods to be Applied in Legal Protection Proceedings

(1) One or several methods shall be applied in legal protection proceedings:

1) the postponement of the honouring of payment obligations;

2) the alienation of movable property or immovable property or encumbrance with rights in rem in order to achieve the extension of the time period for meeting the creditors' claims, or satisfying of the creditors' claims;

3) the increase of the basic capital of a debtor - capital company (including the investing of the right of the creditor to claim against the debtor in the equity capital);

4) reorganisation of a debtor - commercial company (Section 46);

5) other methods which comply with the objective of legal protection proceedings.

(2) The plan of measures of legal protection proceedings within the scope of the creditors' group and each type of the claim of the creditors (basic debt, penalty or interest) may only provide for proportional repayment or reduction of the basic debt, penalty or interest.

(3) Set-off is permitted if the right to claim of the debtor against the creditor has arisen at least three months prior to the court decision regarding the initiation of the matter of legal protection proceedings.

(4) The methods to be applied in the legal protection proceedings may be applicable to the claims of an employee for work remuneration, if the employee concerned agrees thereto. The status of creditor shall not be applicable to an employee of a debtor in legal protection proceedings.

(5) For tax claims, the following shall not be permitted without the consent of the tax administration:

1) the cancellation or reduction of the basic tax debt;

2) the division of the repayment of the basic debt into time periods, the extension of the time period or the postponement of the time period for a period exceeding six months;

3) the reduction of late payment charges by more than 50 per cent, or the cancellation thereof;

4) the reduction of fines by more than 65 per cent, or the cancellation thereof;

5) the division of regular payments of debt into time periods, the extension of time periods or the postponement for a period of time.

(6) It is prohibited to apply in legal protection proceedings such methods which restrict the rights of creditors more than is necessary for the successful implementation of the plan of measures of the legal protection proceedings and for the achievement of the objective of the legal protection proceedings referred to in this Law.

(7) The methods of legal protection proceedings shall not be applied in respect of costs of legal protection proceedings, as well as in respect of the sanctions laid down the Latvian Administrative Violations Code and the Criminal Law.

(8) The principle of proportionality specified in Paragraph two of this Section shall not be applicable to claims for payment of taxes and work remuneration of employees, as well as to the indemnification for the damage, unless a relevant consent of the creditor or employee has been received.

[14 October 2010; 25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 39. Replacement of a Claim with Shares or Stocks of the Equity Capital

(1) If the main claims of non-secured creditors are reduced by more than 10 per cent or cancelled in full, these creditors have the right to request a debtor - capital company - that the amount of the reduced or cancelled claim is replaced by the shares or stocks of the equity capital of the debtor (hereinafter in this Section - shares).

(2) If, in accordance with the law, creditors have the right to request a debtor - capital company - that the amount of the reduced or cancelled claim is replaced by the shares of the debtor, the debtor - capital company - shall provide for, in the plan of measures of the legal protection proceedings, the increase of the equity capital by the amount by which the main claims of the non-secured creditors have been reduced or cancelled.

(3) If, by increasing the equity capital, the increase is equal to or greater than the existing amount of the equity capital, the equity capital shall be increased by an amount not exceeding the amount of the existing equity capital, considering the difference between the increase in the equity capital and the total amount of the reduced or cancelled main claim as the surcharge of a share.

(4) Non-secured creditors whose main claims have been reduced by the amount referred to in this Section or extinguished, have the right to acquire new shares proportional to the amount by which the claim of a non-secured creditor has been reduced or cancelled after proclamation of the legal protection proceedings, in conformity with the possible surcharge of the shares.

(5) When a non-secured creditor applies for new shares, they shall be paid by the property investment of the creditor concerned, the value of which conforms to the amount of the reduced or cancelled claim of this creditor.

Section 40. Plan of Measures of Legal Protection Proceedings

(1) After initiation of a matter of legal protection proceedings a debtor shall draw up a plan of measures of the legal protection proceedings which shall be co-ordinated with the creditors in accordance with the procedures laid down in this Law and submitted for approval to court not later than the day after expiry of the deadline for the co-ordination specified in Paragraph two of this Section.

(2) The time period for the drawing up and co-ordination of the plan of measures of legal protection proceedings is two months from the day when the court has initiated the matter of the legal protection proceedings. The time period for the drawing up and co-ordination of the plan of measures of legal protection proceedings may be extended by one month if the majority of the creditors specified in Section 42, Paragraph three of this Law agree thereto, and the court is informed thereof without delay. If the debtor requires the consent of the tax administration for the implementation of the plan of measures of legal protection proceedings, the plan of the legal protection proceedings shall be co-ordinated with the tax administration in accordance with the procedures laid down in laws and regulations related to taxes.

(3) The task of the plan of measures of legal protection proceedings is to ensure that the gain of the creditors not having co-ordinated the plan, by implementing the legal protection proceedings, is at least as large as that if the insolvency proceedings of a debtor were proclaimed at the moment of the approval of such a plan.

(4) The following shall be indicated in the plan of measures of legal protection proceedings:

1) all the payment obligations of the debtor and the grounds thereof, indicating separately the payment obligations of the debtor against the affiliated undertakings within the meaning of the Law On Enterprise Income Tax, as well as the payment obligations of the debtor against the secured creditors;

2) such payment obligations of the debtor the repayment or honouring deadline of which has taken effect prior to the commencement of the legal protection proceedings or will take effect during the legal protection proceedings, separately indicating the obligations of the debtor for the performance of which the creditors have brought an action in court, and payment obligations for which the debtor has provided guarantees;

3) the obligations of the debtor, which are not payment obligations, but as a result of which the composition of the debtor's assets change;

4) the timetable for the honouring of the payment obligations of the debtor in respect of each creditor, the repayment or honouring deadline of which has taken effect prior to the commencement of legal protection proceedings or will take effect during the legal protection proceedings;

5) the total amount of the planned revenue of the debtor during the legal protection proceedings and grounds for the forecast of the planned revenue, describing the assumptions on which the planned revenue is based, as well as the planned activities for the reduction of the debtor's payments;

6) the total amount of the planned expenses of the debtor during the legal protection proceedings and grounds for the forecast of the planned expenses, describing the assumptions on which the planned expenses is based, as well as the planned activities for the reduction of the debtor's expenses;

7) the methods to be applied in the legal protection proceedings, as well as the grounds for the need of the methods chosen, in order to achieve the implementation of the plan of the legal protection proceedings;

8) the existing and planned types of the basic operation of the debtor;

9) the time period for the implementation of legal protection proceedings;

10) the types of transactions which a debtor may perform, without co-ordination with the administrator, and the amount of such transactions;

11) the procedures by which creditors shall be informed regarding the results of the activities of the debtor during the time period of the implementation of the plan of the legal protection proceedings;

12) information regarding the candidate for an administrator, if the agreement referred to in Section 35, Paragraph two of this Law has been reached, as well as information regarding whether the candidate to the office of administrator has participated in the drawing up of the plan;

13) a list of the pledged property of a debtor which is necessary for the implementation of the plan of measures of the legal protection proceedings and to which restrictions are applicable, in accordance with which the secured creditors may not execute their right in respect of the property of the debtor, which serves as security for the claims thereof until termination of the legal protection proceedings;

14) compensation for a secured creditor for the restriction of his or her rights during the legal protection proceedings and payments to cover the claims of a secured creditor, as well as the procedures for payment of such a type of compensation;

15) justification for the fact that the gain of the creditors not having co-ordinated the plan of measures of the legal protection proceedings, by implementing the legal protection proceedings, is at least as large as that if the insolvency proceedings of a debtor were proclaimed at the moment of the approval of such a plan;

16) a representation that the information in the plan of measures of the legal protection proceedings is true and correct, and the derivatives of the appended documents correspond to their respective originals.

(5) In the plan of measures of legal protection proceedings, preference for persons allocating funds for the implementation of such a plan may be provided for, according to the amount of the funds allocated thereby. If legal protection proceedings are terminated and the insolvency proceedings of a legal person are proclaimed concurrently, the advantages acquired shall remain in effect and claims against the debtor arising from the funds allocated for the implementation of the plan referred to shall be considered to be expenses of the insolvency proceedings. The advantages granted may not affect the interests of the secured creditors.

(6) The following shall be appended to the plan of measures of legal protection proceedings:

1) a report on the forecast of proposed cash flow during the first year of the proceedings, explaining the items of the report in the interval of one month, while for the subsequent years, in the interval of three months;

2) the objections that have been submitted by creditors with regard to the plan of measures of the legal protection proceedings, yet ignored, as well as an evidence that the plan of measures of the legal protection proceedings has been delivered to all creditors;

3) the opinion of the administrator, if the agreement specified in Section 35, Paragraph two of this Law has been reached.

(7) In comparison with other creditors, significantly unfavourable provisions in the plan of measures of legal protection proceedings, in respect of a separate creditor, may only be provided for with the consent of the respective creditor.

(8) The debtor has a duty to deliver to those creditors whose claims prima facie have been recognised as invalid, the administrator's opinion on the plan of measures of the legal protection proceedings concurrently with submitting the plan of measures of the legal protection proceedings to the court, as well as promptly inform the creditors of the date when the application for legal protection proceedings will be examined.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 41. Protection of the Interests of Secured Creditors During Legal Protection Proceedings

(1) Unless a secured creditor has refused, the following shall be provided for in the plan of measures of legal protection proceedings relating thereto:

1) the procedures by which the obligations of the debtor against the secured creditor arising from the contract, which the debtor has not fulfilled prior to the commencement of the legal protection proceedings, shall be honoured;

2) the regular payments arising from the contract.

(2) Expenses arising if the pledged property included in the plan of measures of legal protection proceedings is damaged or the value thereof is reduced, are the expenses of insolvency proceedings in the amount of the value of the pledged property of the claim of the secured creditor or the reduction thereof.

Section 42. Co-ordination of the Plan of Measures of Legal Protection Proceedings

(1) A debtor shall transfer the plan of legal protection proceedings to all creditors, inviting them to give consent for this plan and indicating the time period for the co-ordination thereof.

(2) Voting in regard to the plan of measures of legal protection proceedings shall take place separately within the following groups of creditors:

1) secured creditors in the secured part of their claims;

2) non-secured creditors, and secured creditors in the unsecured part of their claims.

(3) A plan of measures of legal protection proceedings is co-ordinated if it is supported:

1) in a group of secured creditors - by the secured creditors whose main claims in aggregate form two-thirds of the total amount of the main claims of secured creditors, certifying their consent by signature;

2) in a group of non-secured creditors - by the non-secured creditors whose main claims in aggregate form more than half of the total amount of the main claims of non-secured creditors, certifying their consent by signature.

(4) If a creditor has not provided a written response during the time period for the co-ordination of the plan of measures of legal protection proceedings, it shall be considered that the creditor in question has not given consent for the implementation of the legal protection proceedings.

(5) A creditor has the right to submit written objections to the debtor in respect of the plan of measures of legal protection proceedings within five days after receipt thereof. If the submitted objections are acknowledged as justified, the debtor shall amend the plan of measures of legal protection proceedings accordingly. The debtor shall inform the administrator without delay regarding any objections not taken into account, if the agreement referred to in Section 35, Paragraph two of this Law has been reached, and shall append them to the co-ordinated plan of measures of legal protection proceedings.

(6) The following persons are not entitled to implement the right of a creditor in respect of the co-ordination of the plan of measures of legal protection proceedings:

1) persons who are incorporated in one group of companies with the debtor;

2) natural persons who, as participants, have a decisive influence on the debtor - capital company;

3) persons who have acquired the right to claim against a debtor from the persons referred to in Clauses 1 and 2 of this Paragraph within the last two years prior to the co-ordination of the plan of measures of the legal protection proceedings.

(61) The claims of the creditors referred to in Paragraph six of this Section are not included in the total principal amount claimed by creditors which is the basis for calculating the number of votes required for co-ordinating the plan of measures of legal protection proceedings.

(7) If the insolvency proceedings specified in Article 3(2) of Council Regulation No 1346/2000 have been opened against a debtor in Latvia, the plan of measures of legal protection proceedings shall be co-ordinated in writing with the liquidator involved in the insolvency proceedings specified in Article 3(2) of Council Regulation No 1346/2000.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 43. Opinion of an Administrator Regarding the Plan of Measures of Legal Protection Proceedings

(1) Prior to the approval of a plan of measures of legal protection proceedings in court, the administrator shall prepare an opinion on such a plan.

(11) In the case referred to in Section 35, Paragraph three of this Law the administrator shall hand over the plan of measures of legal protection proceedings to the debtor concurrently with submitting it to the court.

(2) The administrator shall provide in the opinion an evaluation regarding the compliance of the plan of measures of legal protection proceedings with the requirements of Sections 38, 40, and 42 of this Law, as well as express an opinion on the objections expressed by the creditors which have not been taken into account in the co-ordinated plan of measures of legal protection proceedings.

(3) The administrator shall, upon his or her own initiative if the respective information is at his or her disposal, or upon a creditor's request, issue an opinion supported with arguments whether the creditor's claim in the plan of measures of legal protection proceedings and appended documents is prima facie justified. If the administrator has evidence at the disposal thereof that the claim prima facie is unjustified, the administrator shall append the opinion thereto.

(4) If the administrator in his or her opinion recognises any of the claims as prima facie unjustified, he or she shall hand over the opinion to the debtor, and the latter shall notify the creditor thereof without delay.

(5) The debtor or the creditor whose claim has been recognised to be prima facie unjustified has the right, not later that three days prior to the examination date of the application for legal protection proceedings, to submit evidence to the court in proof of the creditor's claims being justified.

(6) If the administrator detects that the plan of measures of legal protection proceedings contains any obligations that raise reasonable doubt, or the administrator suspects that the documents appended to the plan might be forged, he or she shall notify the competent authorities accordingly.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Chapter VII
Implementation of Legal Protection Proceedings

Section 44. Pre-Conditions for the Implementation of Legal Protection Proceedings

Legal protection proceedings shall be implemented in respect of a debtor, if:

1) the plan of measures of the legal protection proceedings has been co-ordinated in accordance with the procedures and time period laid down in this Law;

2) the court has approved the plan of measures of the legal protection proceedings and has adjudicated that the legal protection proceedings of the debtor shall be implemented.

Section 45. Effects of the Implementation of Legal Protection Proceedings

(1) A plan of measures of legal protection proceedings is in effect from the day when it has been approved by court. A plan of measures of legal protection proceedings shall be mandatory and shall also be binding to creditors who have not given their consent.

(2) After proclamation of the implementation of legal protection proceedings, secured creditors may not exercise their right in respect of the pledged property of a debtor provided for in the plan of measures of the legal protection proceedings until termination of the legal protection proceedings.

(3) After proclamation of the implementation of legal protection proceedings, secured creditors may exercise their right in respect of the pledged property of a debtor which has not been provided for in the plan of measures of the legal protection proceedings.

Section 46. Reorganisation Within the Scope of Legal Protection Proceedings

(1) The reorganisation of a debtor - commercial company, within the scope of legal protection proceedings is only possible if it is provided for in the plan of measures of the legal protection proceedings.

(2) Reorganisation of a debtor - commercial company, shall take place in accordance with the requirements laid down in the law governing the activity of commercial companies, insofar as it is not laid down otherwise in this Section.

(3) Creditors do not have the right to request security during the process of reorganisation of a debtor - commercial company.

(4) An administrator, creditor and participant of a debtor - commercial company (shareholder) may submit an application to court for the recognition of the decision of a meeting of the participants (shareholders) of a debtor - commercial company - regarding reorganisation as invalid, if it has been taken by violating this Law, or does not conform to the plan of measures of the legal protection proceedings.

(5) The court which has approved the plan of measures of legal protection proceedings shall examine the application referred to in Paragraph four of this Section.

(6) Such a type of reorganisation, as a result of the implementation of which the debtor ceases to exist, except the transformation of a debtor, may not be applied within the scope of legal protection proceedings.

Section 47. Amendment of the Plan of Measures of Legal Protection Proceedings

A debtor shall co-ordinate amendments to the plan of measures of legal protection proceedings with creditors in accordance with the procedures provided for in Section 42 of this Law and, together with the opinion of the administrator, submit it to court for approval.

Section 48. Time Period for the Implementation of Legal Protection Proceedings

(1) The time period for implementation of legal protection proceedings shall be determined as not exceeding two years from the day of entering into effect of the court adjudication regarding the implementation of the legal protection proceedings.

(2) The time period referred to in Paragraph one of this Section may be extended by additional two years, if the majority of the creditors specified in Section 42, Paragraph three of this Law agree thereto. In such a case, the provisions of Section 47 of this Law regarding the amendment of the plan of measures of legal protection proceedings shall be applicable to the debtor

Section 49. Restrictions and Duties of a Debtor's Action

(1) A debtor is prohibited from the following during the time period of implementation of legal protection proceedings:

1) entering into any transactions or performing activities which may deteriorate the financial situation thereof or harm the overall interests of the creditors;

2) issuing loans (credits), except cases when the issuance of loans (credits) is the basic activity of the debtor and this has been entered in the plan of measures of the legal protection proceedings;

3) giving guarantees, giving presents or donating, awarding bonuses to members of the board and council of the debtor or other type of additional financial remuneration;

4) alienating or encumbering an immovable property with rights in rem, except cases where this is provided for in the plan of measures of the legal protection proceedings;

5) dividing and paying dividend profits;

6) performing financial obligations which are not included in the plan of measures of the legal protection proceedings.

(2) A debtor, by co-ordinating in writing with the administrator and without making amendments to the plan of measures of the legal protection proceedings, may perform the honouring of the payment obligations (payment of invoices), which are not included in the plan of measures of the legal protection proceedings, if these payments in total during the period of implementation of the legal protection proceedings do not exceed two per cent of the total amount of the creditors' claims at the moment of the approval of the plan of measures of the legal protection proceedings.

(3) A debtor shall have the following duties during legal protection proceedings:

1) to implement the plan of measures of the legal protection proceedings;

2) to shift all profits towards the implementation of the legal protection proceedings;

3) to cover the costs of the legal protection proceedings;

4) to notify the administrator in writing, at least once a month, of the implementation of the plan of measures of the legal protection proceedings;

5) upon request of the administrator, to provide him or her in writing with all information regarding the implementation of the plan of measures of the legal protection proceedings without delay, and to ensure the opportunity of inspecting the economic activity and documents of the debtor in person;

6) to notify the administrator without delay of any circumstances due to which the debtor may not be able to implement the plan of measures of the legal protection proceedings;

7) to notify the administrator of a change in the legal address thereof and any other changes which are to be entered in the public registers;

8) to notify the administrator of any significant events in the activities of the debtor.

Section 50. Activities of an Administrator During Legal Protection Proceedings

(1) In order to ensure lawful and effective course of legal protection proceedings, the administrator shall perform the supervision of the activities of a debtor in conformity with the aim of the legal protection proceedings, the plan of the legal protection proceedings and the requirements of laws and regulations.

(2) After proclamation of a court adjudication regarding the implementation of legal protection proceedings, an administrator:

1) if necessary for ensuring the performance of obligations, shall submit to the relevant public registers an application regarding the entry of a notation of insolvency;

2) within five days after proclamation of the adjudication regarding the implementation of legal protection proceedings, shall submit an approved plan of measures of the legal protection proceedings to the responsible authority which organises the Insolvency Register;

3) within five days after taking of a court decision regarding approval of amendments to the plan of measures of the legal protection proceedings, shall submit amendments to the plan of measures of the legal protection proceedings approved by court to the responsible authority which organises the Insolvency Register;

4) shall supervise the implementation of the plan of measures of the legal protection proceedings;

5) shall request and receive from the debtor all the information regarding the course of the legal protection proceedings;

6) shall inform the creditors, upon their request, regarding the implementation of the plan of measures of the legal protection proceedings and examine the complaints submitted;

7) in the cases referred to in this Law, shall submit to court without delay an application regarding termination of the legal protection proceedings, appending the necessary information thereto.

(3) The decision of an administrator on the complaints submitted by creditors which affect the content of the plan of measures of the legal protection proceedings and the implementation thereof, may be contested in the court in which the matter of the legal protection proceedings concerned was initiated.

Section 51. Termination of Legal Protection Proceedings

(1) A court shall terminate legal protection proceedings, if:

1) the majority of creditors specified in Section 42, Paragraph three of this Law have not supported the plan of measures of the legal protection proceedings in accordance with the procedures laid down in this Law;

2) the plan of measures of the legal protection proceedings does not conform to the requirements of this Law.

(2) The court shall terminate legal protection proceedings and proclaim the insolvency proceedings of a legal person, if a matter of legal protection proceedings has been initiated in respect of a debtor for the second time in a year, but the implementation of the legal protection proceedings has not been proclaimed.

(3) An administrator has the duty to submit an application to court for the insolvency proceedings of a legal person, concurrently requesting termination of legal protection proceedings, if:

1) when implementing the legal protection proceedings, a debtor has not performed the activities specified in this Law or has provided false information;

2) a debtor has not implemented the plan of measures of the legal protection proceedings for more than 30 days and has not submitted the amendments to this plan to court;

3) the debtor violates the restrictions of action specified in this Law.

(4) A debtor shall submit an application to court regarding the termination of legal protection proceedings, if he or she has implemented the plan of measures of the legal protection proceedings.

(5) A debtor shall submit an application for insolvency proceedings to the court, concurrently requesting termination of the legal protection proceedings if he or she is unable to honour the obligations specified in the plan of measures of the legal protection proceedings (Section 57, Paragraph one, Clause 9).

(6) The administrator shall send a copy of the decision to terminate legal protection proceedings not later than five days after the court has taken the abovementioned decision, to the following:

1) the relevant public register, appending an application for the making of an entry regarding the deletion of the notation of insolvency;

2) the bailiff who is managing the execution files regarding the recovery of the amounts adjudged but not yet recovered from the debtor and matters regarding the honouring of the debtor's obligations through the court.

(7) Paragraph six of this Section shall not be applied if the legal protection proceedings have been terminated, by proclaiming the insolvency proceedings of a legal person.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 52. Effects of the Termination of Legal Protection Proceedings

(1) The termination of legal protection proceedings after implementation of the plan of measures of the legal protection proceedings is justification for the termination of the restriction of action of the debtor specified in the legal protection proceedings and of the use of the methods applied in these proceedings.

(2) If the majority of creditors specified in Section 42, Paragraph three of this Law have not supported the plan of measures of legal protection proceedings in accordance with the procedures and within the time period laid down in this Law and the legal protection proceedings are terminated, the restrictions referred to in Section 37 of this Law shall be terminated and the suspended amount of the penalty, interest and late payment charges for non-honoured obligations shall be calculated in the full amount.

Chapter VIII
Extrajudicial Legal Protection Proceedings

Section 53. Extrajudicial Legal Protection Proceedings

(1) A debtor has the right to concurrently submit an application for the initiation of a matter of legal protection proceedings and request the court to proclaim the implementation of legal protection proceedings, if the following conditions exist:

1) the debtor has drawn up a plan of measures of the legal protection proceedings in conformity with the provisions of Sections 38 and 40 of this Law;

2) the majority of creditors specified in Section 42, Paragraph three of this Law have co-ordinated the plan of measures of the legal protection proceedings;

3) the debtor has agreed with the administrator and creditors on the administrator for the extrajudicial legal protection proceedings;

4) the debtor has received the opinion of the administrator (Section 43);

5) the debtor has sent the co-ordinated plan of measures of the legal protection proceedings to those creditors who have not co-ordinated this plan, concurrently with the submission thereof for approval to court.

(2) The norms of this Law shall be applied to extrajudicial legal protection proceedings, unless otherwise laid down in this Chapter.

(3) The plan of legal protection proceedings in extrajudicial legal protection proceedings shall not affect the interests of the tax administration, if the consent of the tax administration is necessary for the implementation of this plan (Section 38).

Section 54. Administrator in Extrajudicial Legal Protection Proceedings

(1) An administrator shall be appointed to extrajudicial legal protection proceedings upon recommendation of the debtor.

(2) The agreement of a debtor and his or her creditors regarding the choice of an administrator (Section 53, Paragraph one, Clause 3) shall be considered to have been reached, if the plan of measures of extrajudicial legal protection proceedings has been co-ordinated by the majority of creditors referred to in Section 42, Paragraph three of this Law.

Section 55. Effects of the Approval of a Plan of Measures of Extrajudicial Legal Protection Proceedings

The effects referred to in Sections 37 and 45 of this Law shall take effect after the court having approved the plan of measures of extrajudicial legal protection proceedings.

Division C
Insolvency Proceedings of a Legal Person

Chapter IX
General Provisions of Insolvency Proceedings of a Legal Person

Section 56. Subjects of Insolvency Proceedings of a Legal Person

Insolvency proceedings of a legal person shall be applied in respect of a legal person, partnership, individual merchant or a person registered in a foreign country, who performs permanent economic activities in Latvia and the special subjects specified in this Law (hereinafter in this Division - debtor).

Section 57. Features of Insolvency Proceedings of a Legal Person

(1) Insolvency proceedings of a legal person shall be applied to a debtor if any of the following features of the insolvency proceedings of a legal person exists:

1) when applying compulsory execution means it has not been possible to execute the court adjudication regarding the recovery of debt from the debtor;

2) the debtor - a limited liability company or a joint stock company - has not honoured one or more debt obligations from which the principal debt amount separately or in total exceeds 4268 euros and which are past due, and the creditor or creditors have issued or sent a warning at the sender's own expense to the legal address of the debtor regarding the intention to submit an application for the insolvency proceedings of a legal person, and the debtor has not settled the debt or raised justified objections to the claim within three weeks after handing over of the warning to the postal merchant;

3) the debtor - another subject referred to in Section 56 of this Law - has not honoured one or more debt obligations from which the principal debt amount separately or in total exceeds 2134 euros and which are past due, and the creditor or creditors have issued or sent a warning at the sender's own expense to the legal address of the debtor regarding the intention to submit an application for the insolvency proceedings of a legal person, and the debtor has not settled the debt or raised justified objections to the claim within three weeks after handing over of the warning to the postal merchant;

4) the debtor has not paid an employee the work remuneration in full, compensation for damages in connection with an accident at work or an occupational disease or has not made the mandatory social insurance payments within two months after the day specified for payment. Unless the day of payment of work remuneration is specified in the employment contract, this day shall be considered to be the first working day of the following month;

5) the debtor has not honoured its obligations which are past due for more than two months;

6) according to the initial financial report of liquidation the debtor has insufficient assets to satisfy all the justified claims of the creditors, or this condition is discovered during the course of liquidation;

7) the condition referred to in Section 51, Paragraph two of this Law has taken effect;

8) one of the cases referred to in Section 51, Paragraph three of this Law has taken effect;

9) the condition referred to in Section 51, Paragraph five of this Law has taken effect.

(2) The handing over of the warning referred to in Paragraph one, Clauses 2 and 3 of this Section may be proved also with a statement drawn up by a sworn bailiff stating a refusal to receive the warning.

[12 September 2013; 25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 58. Publicity of a Matter of Insolvency Proceedings of a Legal Person

(1) The responsible authority shall enter the following information in the Insolvency Register regarding a matter of insolvency proceedings of a legal person:

1) the debtor's firm (name);

2) the debtor's registration number;

3) the debtor's legal address;

4) the date when the insolvency proceedings of the legal person were proclaimed in court and the name of the court;

5) the given name, surname and certificate number of the administrator appointed to the matter;

6) the given name, surname, certificate number and term of validity of the authorisation of the authorised administrator;

7) the given name, surname, address of the place of practice and telephone number of the liquidator involved in the insolvency proceedings specified in Article 3(1) of Council Regulation No 1346/2000;

8) the time period for the application by creditors;

9) the address, date and time of the creditors' meeting;

10) the type of insolvency proceedings in accordance with Article 3(1) or 3(2) of Council Regulation No 1346/2000;

11) the date of the termination of the legal protection proceedings of a legal person, the name of the court, and the justification;

12) the date of submitting the plan for the sale of a debtor's property;

13) the date of the making of the entry.

(2) The information referred to in Paragraph one of this Section may be published also in other registers, information systems, or databases.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 59. Appointment of an Administrator to Insolvency Proceedings of a Legal Person

(1) The Insolvency Administration shall select and recommend to court a candidate for the office of administrator for the specific insolvency proceedings of a legal person.

(2) The Insolvency Administration shall send the proposal for the candidate to the office of administrator for the insolvency proceedings of a legal person to the Finance and Capital Market Commission, if this candidate is being recommended to a participant of the finance and capital market, the supervision of which is performed by the Finance and Capital Market Commission in accordance with the requirements of laws and regulations.

(3) [25 September 2014].

(4) If the creditors' meeting has proposed to revoke the administrator recommended by the Insolvency Administration and appointed by the court, the Insolvency Administration shall select and recommend to the court a new candidate for the office of administrator for the particular insolvency proceedings of a legal person.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Chapter X
Application for Insolvency Proceedings of a Legal Person

Section 60. Persons who may Submit an Application for Insolvency Proceedings of a Legal Person

(1) An application for the insolvency proceedings of a legal person may be submitted in the cases provided for in this Law by:

1) a creditor or creditors, if any of the features of the insolvency proceedings of a legal person referred to in Section 57, Paragraph one, Clause 1, 2, 3, or 4 of this Law exists;

2) a debtor, if any of the features of the insolvency proceedings of a legal person referred to in Section 57, Paragraph one, Clause 5, 6, or 9 of this Law exists;

3) the person indicated in Article 29(a) of Council Regulation No 1346/2000, in order to initiate the insolvency proceedings specified in Article 3(2) of this Regulation against a debtor;

4) an administrator, if the feature referred to in Section 57, Paragraph one, Clause 8 of this Law exists.

(2) An employee who has or who has had employment legal relationships with the debtor may submit an application for the insolvency proceedings of a legal person in accordance with the feature of insolvency proceedings referred to in Section 57, Clause 4 of this Law.

(3) A debtor has a duty to submit an application for the insolvency proceedings of a legal person without delay, if any of the features of the insolvency proceedings of a legal person referred to in Section 57, Paragraph one, Clause 5, 6, or 9 of this Law exists. If the feature referred to in Section 57, Paragraph one, Clause 5 of this Law exists, the debtor has a duty to submit an application for the insolvency proceedings of a legal person in cases when no agreement has been reached with the creditors or a matter of legal protection proceedings has not been initiated.

(4) An application for the insolvency proceedings of a legal person shall be submitted to court in accordance with the procedures laid down in the Civil Procedure Law.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 61. Restrictions to the Submission of an Application for Insolvency Proceedings of a Legal Person

(1) A secured creditor may not submit an application for insolvency proceedings of a legal person.

(2) If a claim is not secured in full, an application for insolvency proceedings of a legal person may be submitted by a secured creditor only to the extent of the non-secured part of the claim.

(3) A non-secured creditor is not entitled to submit an application for insolvency proceedings of a legal person, if legal protection proceedings have been initiated or are being initiated in respect of the debtor.

Section 62. Deposit for Insolvency Proceedings of a Legal Person

(1) The pre-condition for the submission of an application for insolvency proceedings of a legal person is the payment of a deposit in the amount of two minimum monthly salaries into an account specially created by the Insolvency Administration.

(2) The objective of the deposit for insolvency proceedings of a legal person is to meet the costs of the insolvency proceedings of a legal person if the debtor has no property or its value is lower than the deposit amount, and the creditors have not decided to use another source of financing.

(3) The deposit may be used, if the debtor has no property or its value is lower than the deposit amount and the insolvency proceedings of a legal person are terminated, based on the creditors having not decided on using another source of financing.

(4) If insolvency proceedings of a legal person are not proclaimed or are financed from the debtor's funds, or creditors decide to continue the insolvency proceedings of a legal person, the deposit shall be repayable to the submitter of the application for the insolvency proceedings of a legal person.

(5) The deposit for insolvency proceedings of a legal person shall not be repaid to the submitter of an application for the insolvency proceedings of a legal person in the following cases:

1) the application for the insolvency proceedings of a legal person has been unjustified or deliberately false;

2) the creditor, on receiving the settlement of the claim thereof, does not revoke the application for the insolvency proceedings of a legal person and the court holds a sitting for the examination of the matter of the insolvency proceedings of a legal person.

(6) In the cases specified in Paragraph five of this Section, the deposit paid shall be transferred to the Treasury.

(7) An administrator who submits an application for insolvency proceedings of a legal person in accordance with Section 57, Paragraph one, Clause 8 of this Law shall be exempt from the payment of the deposit.

(71) The court may fully or partly exempt an employee from payment of the insolvency proceedings deposit, if he or she submits an application for insolvency proceedings after that when, by applying enforcement measures, it was not possible to fulfil a court adjudication regarding recovery of debt from the debtor, and the employee, taking into account his or her financial situation, is not able to pay in the insolvency proceedings deposit.

(72) If in the case referred to in Paragraph 7.1 of this Section it is not possible to cover the costs of the insolvency proceedings of a legal person from the debtor's funds and the creditors have not decided to use another source of financing, the costs of the insolvency proceedings of a legal person shall be covered from the State budget and the State entrepreneurial risk fee funds that have been allotted to the Insolvency Administration for meeting the costs of insolvency proceedings of a legal person on relevant occasions.

(73) The Cabinet shall determine what part of the funds collected as part of the State entrepreneurial risk fee is to be allocated for covering the costs of insolvency proceedings of a legal person in the case referred to in Paragraph 7.2 of this Section.

(74) In the case referred to in Paragraph 7.1 of this Section, the costs of insolvency proceedings of a legal person shall be covered in accordance with the procedures and in the amounts equal to the payment of the deposit for insolvency proceedings of a legal person.

(8) The Cabinet shall determine the procedures by which the deposit for insolvency proceedings of a legal person shall be paid into the account specially created by the Insolvency Administration and disbursed to the submitter of the application for the insolvency proceedings of a legal person, the administrator, or to the Treasury.

[The norm of Paragraph one regarding payment of insolvency proceedings deposit insofar as applicable to employees whose sole means of legal protection are proclamation of the employer as insolvent has been recognised as non-conforming to the first sentence of Section 92 of the Constitution of the Republic of Latvia by the Constitution Court judgment of 20 April 2012 which shall enter into effect on 24 April 2012. 25 September 2014 / See Paragraph 34 of Transitional Provisions]

Chapter XI
Effects of the Proclamation of Insolvency Proceedings of a Legal Person

Section 63. Effects of the Proclamation of Insolvency Proceedings of a Legal Person

(1) After proclamation of insolvency proceedings of a legal person:

1) the debtor shall lose the right to act with all his or her property, as well as with the property of third persons that is possessed or held by the debtor, and such a right shall be acquired by the administrator;

2) the activity of the administrative institutions of the debtor shall be suspended, and the administration of the debtor shall be performed by the administrator;

3) the increase in interest for the use of the loan (credit), the lawful increase in interest, the increase in the penalty (including the penalty increment expressed in per cent), the increase in the late payment charges (the calculation of the late payment money which is determined as an interest payment for missing the deadline for the payment of tax, duty and fine payments shall be suspended for tax claims) ceases;

4) two months from the day after proclamation of the insolvency proceedings of a legal person, a secured creditor is prohibited from requesting the sale of the pledged property of the debtor.

(2) If the enforcement of a judgment is commenced prior to the proclamation of the insolvency proceedings of a legal person, it shall be terminated in accordance with the procedures laid down in the Civil Procedure Law. After proclamation of the insolvency proceedings of a legal person, the creditors shall submit claims to the administrator in accordance with the procedures laid down in this Law.

(3) The obligations of the debtor whose period of honouring has taken effect after the day when the insolvency proceedings of a legal person have been proclaimed, shall be considered to be such whose period of honouring has taken effect on the day of the proclamation of the insolvency proceedings of the legal person.

(4) The judgement of the court proclaiming the insolvency proceedings of a legal person is the grounds for a stay of proceedings in claims that have been raised against the debtor and which are financial in nature.

(5) The judgement of the court proclaiming the insolvency proceedings of a legal person is the grounds for revoking the securing of claims in accordance with the procedures laid down in the Civil Procedure Law.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 64. Powers of an Administrator after Proclamation of Insolvency Proceedings of a Legal Person

(1) After proclamation of insolvency proceedings of a legal person:

1) the administrator has all the rights, duties and responsibilities of administrative bodies provided for in laws and regulations, the articles of association of the debtor or in contracts;

2) the administrator shall decide on the continuation of the economic activity of the debtor to a full or restricted extent, if the continuation of this activity is economically justified, or on the termination thereof;

3) the administrator shall make regular tax and duty payments in accordance with the procedures laid down in laws and regulations;

4) the administrator, if necessary, submits an application to the relevant public registers for the entry or deletion of a notation of insolvency, appending a copy of the court decision regarding the appointment of an administrator.

(2) If the insolvency proceedings specified in Article 3(1) of Council Regulation No 1346/2000 have been initiated against a debtor in another Member State and the liquidator involved therein is operating in Latvia, without commencing the insolvency proceedings specified in Article 3(2) of this Regulation, the liquidator involved in the insolvency proceedings specified in Article 3(1) of Council Regulation No 1346/2000 shall ensure that the appropriately certified copy of the adjudication regarding the proclamation of the insolvency proceedings of a legal person and the appointment of a liquidator, as well as the translation of this adjudication into the official language certified according to the specified procedures, are submitted to the relevant competent persons and authorities of the insolvency proceedings of a legal person.

Section 65. Duties of an Administrator after Proclamation of Insolvency Proceedings of a Legal Person

After proclamation of insolvency proceedings of a legal person an administrator shall:

1) without delay take a decision to determine a representative or representatives of the debtor in the matter of the insolvency proceedings of a legal person and submit this decision to court, as well as send it to the representative or representatives of the debtor;

2) without delay commence full inventory of the documents and property of the debtor and draw up the balance of the debtor;

3) accept, register and check creditors' claims;

4) without delay take into their administration all the property of the debtor, as well as the property possessed or held by the debtor that belongs to third persons;

5) in accordance with the procedures laid down in this Law and within the time periods specified, provide the creditors and Insolvency Administration with a report of the activities thereof;

6) recover the debts of debtors and perform legal activities for the recovery of other property of the debtor;

7) in the cases and in accordance with the procedures laid down in laws and regulations, address the Insolvency Administration with a submission regarding the settling of the claims of employees from the resources of the guarantee fund for employee claims. The Cabinet shall determine the amount of remuneration of the administrator for the submission of employees' claims and the procedures by which this shall be paid;

8) evaluate and bring an action in court against the members of the administrative bodies of a legal person and the participants (shareholders) of a capital company for the compensation of the losses caused thereby, as well as against the personally responsible members of a partnership in connection with their responsibility for the liabilities of the partnership with their property;

9) request that the participants (shareholders) of the debtor honour their obligations in respect of the basic capital or other property of the debtor, and submit claims to court for the honouring of such obligations;

10) if the Finance and Capital Market Commission performs the supervision of the activities of the participants of the financial and capital market in accordance with the requirements of laws and regulations, at least once a year inform specific creditors of the course of the insolvency proceedings of a legal person, by sending an individual report to those creditors whose place of residence or legal address is in a foreign country, as well as a report to the Insolvency Administration;

11) ensure the evaluation of the property included in the plan for selling the property of the debtor;

12) submit an application to the bailiff for the termination of the execution proceedings in the matters regarding the recovery of the amounts adjudged but not yet recovered from the debtor and matters regarding the honouring of the debtor's obligations through the court; and

13) hand over the debtor's documents to the State archives for storage, including:

a) the debtor's instructions regarding the personnel (the employment of persons, the transfer to other employment and the dismissal from employment),

b) the debtor's registration journal (register) of personnel instructions,

c) the employment contracts of the debtor's employees with whom employment legal relationships have been terminated (unless they are in the relevant personal files) and work-record books (unless they are with the relevant employees),

d) the debtor's documents regarding social tax payments until 1 January 1997,

e) investigative statements or opinions and investigative material in respect of accidents at work;

14) perform other duties laid down in this Law.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 66. Duties of an Administrator in Insolvency Proceedings which have been Initiated in Accordance with Council Regulation No 1346/2000

(1) If the insolvency proceedings specified in Article 3(1) of Council Regulation No 1346/2000 have been initiated in another Member State, the person referred to in Article 22(2) of this Regulation, when performing activities in Latvia which are connected to the recovery and alienation of the property of a debtor, shall inform the relevant public registers of the initiation of insolvency proceedings against the debtor. An appropriately certified copy of the adjudication regarding the initiation of insolvency proceedings against the debtor and the appointment of the liquidator involved in the insolvency proceedings specified in Article 3(1) of Council Regulation No 1346/2000, as well as a translation of this adjudication into the official language certified in accordance with the specified procedures, shall be appended to the information.

(2) If the insolvency proceedings specified in Article 3(1) of Council Regulation No 1346/2000 are initiated against the debtor in another Member State and the debtor owns an establishment within the meaning of Article 2(h) of this Regulation, the person referred to in Article 21(2) of Council Regulation No 1346/2000 shall submit an application for the insolvency proceedings of a debtor - legal person to the responsible authority that makes the entries in the Insolvency Register, within five working days after the day when the liquidator involved in the insolvency proceedings specified in Article 3(1) of this Regulation has commenced operations which are connected to the recovery and alienation of the property of the debtor's establishment. The following shall be indicated in the application:

1) the firm name and registration number of the debtor;

2) the name of the court and the day when the adjudication was rendered;

3) the given name, surname, address of the place of practice and telephone number of the liquidator involved in the insolvency proceedings specified in Article 3(1) of Council Regulation No 1346/2000;

4) the fact that the insolvency proceedings specified in Article 3(1) of Council Regulation No 1346/2000 have been initiated against the debtor;

5) the Member State whose laws and regulations are applicable to the opening, conduct and termination of the insolvency proceedings.

(3) If the insolvency proceedings specified in Article 3(1) of Council Regulation No 1346/2000 have been initiated in another Member State, the person referred to in Article 21(1) of this Regulation, when performing activities in Latvia which are related to the recovery and alienation of the property of a debtor, is entitled to submit an application to the responsible authority for the making of an entry in the Insolvency Register, indicating the information referred to in Paragraph two of this Section.

(4) If the insolvency proceedings specified in Article 3(1) or 3(2) of Council Regulation No 1346/2000 have been initiated against a debtor in Latvia, the administrator, within five days after proclamation of the insolvency of the debtor, shall send the creditors, whose place of residence or legal address is in another Member State, a notification regarding the insolvency of the debtor and the submission of the claims of creditors in accordance with the procedures laid down in the abovementioned Regulation. The following shall also be indicated in the notification:

1) the firm name and registration number of the debtor;

2) the name of the court and the day when the judgment was proclaimed;

3) the given name, surname, address of the place of practice and telephone number of the administrator;

4) the type of insolvency proceedings initiated in accordance with Article 3(1) or 3(2) of Council Regulation No 1346/2000;

5) the Member State whose laws and regulations are applicable to the opening, conduct and termination of the insolvency proceedings;

6) that information is to be included in the claim of the creditor, regarding whether the claim is secured with rights in rem.

(5) If the insolvency proceedings specified in Article 3(2) of Council Regulation No 1346/2000 have been initiated against a debtor in Latvia, the administrator shall co-operate with the liquidator involved in the insolvency proceedings specified in Article 3(1) of this Regulation, shall provide the information necessary for the administration of the insolvency proceedings upon request of the liquidator, as well as information regarding the property of the debtor which is located in Latvia, regarding the measures planned or to be carried out for the recovery and alienation of property, regarding the claims of creditors submitted, recognised and non-recognised claims and complaints in connection with claims, regarding the grouping of creditors, the settled claims of creditors, creditor meetings, regarding the course, solutions and measures of the insolvency proceedings specified in Article 3(2) of Council Regulation No 1346/2000, the division of property and money remaining.

(6) If the insolvency proceedings specified in Article 3(1) of Council Regulation No 1346/2000 have been initiated against a debtor in Latvia, the administrator shall follow the course of the insolvency proceedings specified in Article 3(2) of this Regulation initiated against the debtor in another Member State and, if necessary, request information from the liquidator involved in the insolvency proceedings specified in Article 3(2) of the Regulation referred to, inform the liquidator of other insolvency proceedings specified in Article 3(2) of this Regulation initiated against the debtor, and the important aspects of the course of these proceedings.

Section 67. Rights of an Administrator after Proclamation of Insolvency Proceedings of a Legal Person

In addition to the general rights of an administrator specified in this Law, an administrator has the following rights after proclamation of the insolvency proceedings of a legal person:

1) to alienate the property of the debtor in accordance with the procedures laid down in this Law;

2) to liquidate branches or representation offices of the debtor;

3) to hand over any claim of the debtor to the court for examination;

4) to insure the transactions of the debtor and the property owned by the debtor;

5) without special authorisation to compile and sign any document on behalf of the debtor;

6) to appoint officials for the performance of the administrative work of the debtor and determine their competence, and to hire and dismiss from work employees, including those who were employed before the day of the proclamation of the insolvency proceedings of a legal person;

7) to cover the costs of the insolvency proceedings of a legal person (Section 168, Paragraph three);

8) to lease (rent) out any property of the debtor, as well as to lease (rent) any property, if such is in the interests of the creditors as a whole;

9) to renounce any claim, or to enter into any settlement in the name of the debtor with respect to claims of the debtor against third persons;

10) to submit an application regarding the proclamation of the insolvency proceedings of a legal person of any such third person as has debt obligations against the debtor, and to represent the claims of the debtor, if the insolvency proceedings of a legal person are proclaimed on the basis of such an application;

11) to change the registered legal address of the debtor;

12) to request that the creditor submits the translation of the claim and justifying documents thereof into the official language, certified in accordance with the specified procedures;

13) to invite specialists in order to ensure the effective and lawful insolvency proceedings of a legal person, and to cover the costs related thereto by consent of the creditors meeting, from the resources of the insolvency proceedings of the debtor or another legal person;

14) to request the bailiff to suspend advertised auctions, if it is planned to sell the property of the debtor in its entirety;

15) within three months after the submission date of the creditor's claim, to raise a reversed claim against the creditor, by requesting the court to impose a temporary protective measure against this creditor - removing its voting rights, in order to contest the claim based on a court adjudication regarding undisputed enforcement of obligations or compulsory enforcement of obligations according to the warning procedures, if there is reasonable doubt that the creditor's claim is based on a court adjudication that has taken effect within the three years preceding the date of proclaiming the insolvency proceedings of a legal person.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Chapter XII
Representative of the Debtor and Interested Persons with Respect to the Debtor

Section 68. Representative of the Debtor

(1) The administrator shall appoint a representative of the debtor, whose participation at the insolvency proceedings is mandatory, observing the following order:

1) a member of an executive authority who is entitled to represent the debtor separately;

2) another member of an executive authority;

3) the head of a supervisory body;

4) another member of a supervisory body;

5) a participant (shareholder), who has the greatest number of votes.

(2) The member who has representative rights shall be appointed as the representative of a debtor in a partnership, but if there is no such a member, the member with administrative rights shall be appointed.

(3) The administrator may appoint another person as the representative of a debtor, if he or she can provide the information specified in this Law regarding the debtor and his or her activities and if the persons specified in Paragraphs one and two of this Section are unable to provide the abovementioned information, due to objective reasons.

(4) If the representative of a debtor is unable to fulfil his or her duties due to objective circumstances, another person referred to in this Section shall be appointed as the representative of the debtor.

(5) The administrator shall send the decision to appoint a representative of the debtor to the court, without delay.

(6) The administrator may not take a decision to appoint a new representative of the debtor, if the representative of the debtor is deceased and it is impossible to appoint a another representative of the debtor.

(7) A decision to appoint a representative of the debtor may be appealed to a court by the person who has been appointed as the representative of the debtor. The complaint shall be submitted within three weeks from the day when the relevant person has found out the decision.

Section 69. Rights of the Representative of a Debtor

The representative of a debtor has the following rights:

1) to become acquainted with the claims submitted by creditors and to express the objections against them to the administrator;

2) to request and receive information regarding the sale of the property of the debtor;

3) to participate in the creditors' meeting and become acquainted with the minutes thereof;

4) to request that the administrator convenes a creditors' meeting in accordance with the procedures laid down in this Law;

5) to draw up the plan of measures of the legal protection proceedings;

6) to submit a complaint regarding the decision of the creditors' meeting or the administrator or bring an action to court in accordance with the procedures laid down in this Law.

Section 70. Duties of the Representative of a Debtor

(1) The duties of the representative of a debtor are to attend all the creditors' meetings and court sittings to which they have been invited, as well as to provide all information at the disposal thereof regarding the debtor.

(2) By a deed of acceptance and delivery, the representative of a debtor shall transfer to the administrator the entire property of the debtor and its organisational, personal and accounting documents, orders, statements, reports and lists, as well as the stamp and seal of the debtor, within the time period specified by the administrator, which shall be not less than three days and not longer than 10 days after the day of proclamation of the insolvency proceedings of a legal person. The duty of the representative of a debtor is to prepare a list of the property and documents of the debtor to be handed over.

(3) If the representative of a debtor changes his or her place of residence during the period of the insolvency proceedings of a legal person, his or her duty is to notify the administrator and the court of the address of the new place of residence without delay.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 71. Duty of the Representative of a Debtor to Provide Information to the Administrator and the Court

(1) The representative of a debtor has the duty to provide the information requested by the court or administrator regarding the debtor without delay, but not later than within 10 days after the day of sending the request.

(2) If the information requested is not at the disposal of the debtor, he or she shall inform the administrator or court accordingly without delay, indicating the reasons why this information is not at the disposal thereof.

(3) The representative of the debtor shall submit the requested information or the appropriate notification that he or she is unable to submit in writing the information requested, certifying this with his or her signature.

(4) If the administrator has sent a request to provide information, to the address of the place of residence of the debtor's representative by registered mail, it shall be considered that the debtor's representative has received this request on the seventh day after sending and that the content thereof is known to him or her.

Section 72. Interested Persons in Relation to a Debtor

(1) The following persons shall be considered as interested persons in relation to a debtor:

1) the participants (shareholders) of a debtor or members of a partnership, members of an administrative body;

2) the proctor and person with a commercial power of attorney;

3) the person who is married to or is in relation or affinity to the second degree with the founder, participant (shareholder) of the debtor, or member of a partnership or member of an administrative body;

4) a creditor who is in one group of companies with the debtor.

(2) The persons referred to in this Paragraph shall be recognised as interested persons in relation to a debtor, if they have been in this status for the preceding five years prior to the day of proclamation of the insolvency proceedings of the debtor.

Chapter XII.1
Liability of the Members of Board of Directors

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 72.1 Liability of the Members of Board of Directors for Failing to Provide Documents

(1) Members of the board of directors of the debtor - a capital company - shall be jointly liable for the losses incurred by the debtor if they have failed to provide the debtor's accounting documents to the administrator of the insolvency proceedings, or the documents are in a state, which does not allow obtaining a true and fair view of the debtor's transactions and the state of property within the last three years preceding the proclamation of the insolvency proceedings.

(2) In the cases referred to in Paragraph one of this Section, the amount of losses incurred by the debtor shall be the creditors' claims in the amount of principal debt that have been recognised in the debtor's insolvency proceedings and that cannot be satisfied within the scope of the debtor's insolvency proceedings.

(3) In the insolvency proceedings, the administrator of the insolvency proceedings shall raise a claim against a member of the board of directors on behalf of the debtor. The creditor has the right to enter into the matter in the capacity of a third person in accordance with the procedures laid down in the Civil Procedure Law. If the administrator has raised no such claim, the creditor is entitled to raise it within one year after completion of the insolvency proceedings in the amount of the claim that has not been satisfied.

(4) The court may reduce the indemnification amount for which a member of the board of directors is liable, taking into consideration his or her influence on the circumstances referred to in Paragraph one of this Section.

(5) The provisions of this Section shall also apply to legal representatives of the subjects of insolvency proceedings of other legal persons who are responsible for the accounting records of the legal person and the storage of all documents certifying all economic transactions.

Chapter XIII
Creditors' Claims

Section 73. Submission of Creditors' Claims

(1) Creditors' claims against a debtor shall be submitted to the administrator within one month from the day when the entry has been made in the register regarding proclamation of the insolvency proceedings of the debtor.

(2) If a creditor has missed the deadline for submitting a claim referred to in Paragraph one of this Section, he may submit his or her claim against the debtor within a deadline not exceeding six months from the day when the entry has been made in the Insolvency Register regarding proclamation of the insolvency proceedings of the debtor, but not later than until the day when the plan for settling the creditors' claims has been drawn up in accordance with the procedures laid down in this Law. After this deadline a limitation period sets in, thereby the creditor shall lose his or her creditor status and his or her rights to claim against the debtor.

(3) If a creditor has missed the deadline for submitting a claim referred to in Paragraph one of this Section, but has submitted his or her claim within six months from the day when the entry has been made in the Insolvency Register regarding proclamation of the insolvency proceedings of a debtor, but not later than until the day when the plan for settling the creditors' claims has been settled in accordance with the procedures laid down in this Law, the creditor in question shall be included in the Register of Creditors' Claims, however, this creditor shall not be granted voting rights.

(4) In their submission the creditors shall indicate:

1) the grounds for the claim;

2) the type of claim;

3) the amount of the claim, separately referring to the amount of the main claim and the amount of the ancillary claim;

4) the time the claim arose;

5) whether the creditor is recognised as an interested person within the meaning of Section 72 of this Law;

51) whether the creditor is recognised as a creditor whose right to claim against the debtor is conditional, as well as the claim amount and the date (if any) by which the condition should materialise;

6) the contact information, including electronic mail address;

7) the bank account number.

(5) A secured creditor, when submitting a creditor's claim, shall indicate the amount for which the claim is secured. A secured creditor whose right to claim against a third person is secured by a commercial pledge, or mortgage on the property of the debtor registered in the Land Register or Ship Register, when submitting the creditor's claim, shall state the value of the debtor's property serving as a security (pledged) as on the date of proclamation of the insolvency proceedings.

(6) Substantiating documents shall be appended to the submission. In exceptional cases when the number of substantiating documents significantly hinders the submission of a claim, the creditor, by agreeing with the administrator before submitting the claim, may not submit the derivatives of the substantiating documents, if the documents justifying the claim are at the disposal of the debtor and there is no dispute between the debtor and the creditor regarding rights. The tax authority may not submit the derivatives of the substantiating documents if the information justifying the claim can be obtained by the administrator from the Electronic Declaration System of the State Revenue Service.

(61) If the creditor's claim is based on the court adjudication regarding undisputed enforcement of obligations or compulsory enforcement of obligations according to the warning procedures, the creditor shall append a true copy and other documents justifying the claim to the submission referred to in Paragraph four of this Section.

(7) If the insolvency proceedings specified in Article 3(1) or 3(2) of Council Regulation No 1346/2000 have been initiated against a debtor, the debtor's creditor, whose place of residence or legal address is in another Member State, shall submit the creditor's claim. The information specified in Articles 41 and 42 of the abovementioned Regulation shall be indicated in the claim. The administrator shall convert a creditor's claim in foreign currency into euros according to the exchange rate applied for accounting purposes on the date of proclamation of the insolvency proceedings of a legal person.

(8) If the insolvency proceedings specified in Article 3(1) or 3(2) of Council Regulation No 1346/2000 are initiated against the debtor and the administrator in the interests of the creditors of these proceedings lodges the claims of the creditors in the insolvency proceedings initiated against the debtor in another Member State, prior to submitting the claim he or she shall send a notification to each creditor with a request to consent to the lodging of the claims of the creditors in other proceedings. If the creditor has not provided a written response to the administrator within three weeks after sending of the notification, it shall be considered that he or she has rejected the offer to submit his or her claim to other proceedings. If the administrator has not informed the creditor, the creditor is entitled to revoke the claim submitted in his or her interests, by submitting a retraction to the administrator. The administrator shall withdraw the creditor's claim within two weeks after receipt of the retraction.

(9) The Insolvency Administration shall exercise the right to claim in respect of the repayment of the funds allocated thereto which have been paid from the State budget funds for settling employees' claims. When executing the right to claim for settling employees' claims in the amount of the funds paid, the provisions of this Law regarding the deadline for submission of the claims of creditors and the recognition or non-recognition of the claims of creditors shall not be applicable to the Insolvency Administration.

(10) A claim by the Insolvency Administration to repay the funds allocated by it for settling the employees' claims shall be entered into the Register of Creditors' Claims, when the Insolvency Administration has paid the amounts allocated for settling employees' claims.

(11) The claims of tax authority raised after the insolvency proceedings proclamation date and directly related to the debtor's transactions performed up to the date when the insolvency proceedings were proclaimed shall be filed as creditor's claims in accordance with the procedures laid down in this Law.

[12 September 2013; 25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 74. Inspection of the Creditors' Claims

(1) The administrator shall inspect the validity of the creditors' claims and the conformity thereof with the requirements of laws and regulations.

(2) If a creditor's claim does not conform to the requirements of laws and regulations, including if that specified in Section 73, Paragraph four of this Law is not indicated in the creditor's claim, the administrator shall send a request to the creditor without delay, to rectify the deficiencies established within 10 days from sending of the request by the administrator. If that specified in Section 73, Paragraph four, Clause 6 of this Law is not indicated in the creditor's claim, the administrator shall, without delay, send the creditor a request to rectify the established deficiencies within 10 days from the day when the consignment is handed over to the postal merchant. If the creditor rectifies the deficiencies within this time period, it shall be considered that the creditor's claim has been submitted within the time period specified. If the creditor does not rectify the deficiencies within the time period specified, the administrator shall take a decision on non-recognition of the creditor's claim or the partial recognition within 10 days from expiry of the deadline given for rectifying the deficiencies.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 75. Administrator's Decision Regarding the Creditors' Claims

(1) After inspection of the creditors' claims, the administrator shall take a justified decision on recognition, non-recognition or partial recognition of the creditor's claim. The administrator shall not fully or partially recognise a creditor's claim regarding which a dispute exists between the debtor and creditor.

(2) The administrator may not recognise or partially recognise a creditor's claim which has been established by a court adjudication only if there is evidence that the debtor has honoured his or her obligations fully or partially entering into effect of the court adjudication.

(21) The administrator may not recognise a secured creditor's claim against a third person that is secured by a commercial pledge, or mortgage on the property of the debtor registered in the Land Register or Ship Register and is conditional, if there is reasonable doubt that the condition would materialise.

(3) An adjudication of the Court of Arbitration, in terms of legal outcome, shall be comparable to a court adjudication if the writ of execution issued by the court is appended thereto.

(4) If the administrator has not recognised the creditor's claim, the respective claim shall be excluded from the Register of Creditors' Claims after expiry of the appeal deadline. A creditor's claim shall not be excluded from the Register of Creditors' Claims if the administrator's decision is appealed. Until the moment when the court has examined a complaint, the creditor's claim in question shall be included in the Register of Creditors' Claims but voting rights shall not be granted to this creditor.

(41) When the court, while handling the dispute about the administrator's decision, has set a deadline for brining an action and there is a dispute about rights, then, up to the moment when the relevant creditor's claim has been recognised by a court adjudication, it should be listed in the register of creditors' claims, whereas this creditor shall not be granted any voting rights.

(5) The administrator's decision on non-recognition or partial recognition of a creditor's claim shall be sent to the relevant creditor by post within three days after taking thereof, and the consignment shall be processed in the form of registered mail. It shall be considered that the addressee has received the decision concerned on the seventh day after handing over thereof to the postal office. If doubts arise, the administrator shall prove when the consignment was handed over to the postal merchant.

(6) The administrator shall take the decision on recognition, non-recognition or partial recognition of the creditor's claim within seven days after receipt of this claim. The administrator shall take the decision on recognition, non-recognition or partial recognition of the creditor's claim of a debtor's employee within 15 days after receipt of this claim.

(7) If a claim is submitted after expiry of the deadline for the submission of the creditors' claims, the administrator shall take a decision on recognition, non-recognition or partial recognition of the creditor's claim concerned not later than within 15 days after receipt of the creditor's claim.

(8) If newly discovered circumstances or documents regarding a creditor's claim come into the disposal of the administrator, for which a decision has already been taken, the administrator is entitled to amend or revoke this decision, but not later than by the day when the plan for settling the creditors' claims has been drawn up in accordance with the procedures laid down in this Law. When revoking the initial decision, the administrator shall take a new decision in accordance with the procedures laid down in this Section, in conformity with the deadline for the application of the creditors' claims specified in Section 73 of this Law.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 76. Decision to Grant the Status of Non-Secured Creditor to a Secured Creditor after Sale of Pledged Property

(1) If, when selling the pledged property of a debtor, an amount of money received does not cover the claims of the secured creditors, after taking of the decision by the administrator the relevant creditors shall acquire the status of non-secured creditor for the part of the claim not covered.

(2) If a secured creditor has submitted his or her claim to the administrator within the time period specified in Section 73, Paragraph one of this Law the voting rights for the part of the claim not covered shall be granted to the secured creditor in accordance with the procedures laid down in Section 87 of this Law.

(3) The amount of the main claim not covered and the ancillary claim not covered shall be indicated separately in the administrator's decision.

(4) The administrator shall take a decision and send it to the creditor within five days from the day when the funds acquired from the sale have been transferred to the creditor.

Section 77. Grouping of the Creditor's Claims

The administrator shall divide the submitted claims of creditors into the two following groups:

1) claims of secured creditors;

2) claims of non-secured creditors.

Section 78. Register of Creditors' Claims

(1) The administrator shall organise the Register of Creditors' Claims.

(2) The administrator shall enter the following information in the Register of Creditors' Claims:

1) the creditor's firm (name) or the given name, surname, registration number or personal identity number, contact information of that creditor which has submitted the creditor's claim;

2) a note regarding the recognition or non-recognition of the creditor's claim;

3) the grounds for the creditor's claim;

4) the time the creditor's claim arose;

5) the type of the creditor's claim;

6) the amount of the creditor's claim (the amount of the main claim and ancillary claim);

7) the number of votes of the creditor at a creditors' meeting.

(3) Within seven days after expiry of the deadline specified in Section 73, Paragraph one of this Law, the administrator shall send the Register of Creditors' Claims to the creditors and representative of the debtor in accordance with the procedures laid down in this Law.

(4) Within five days, the administrator shall notify the creditors that changes have been made to the Register of Creditors' Claims.

Section 79. Right to Become Acquainted with the Register of Creditors' Claims

(1) Any person who has submitted a creditor's claim, the Insolvency Administration and a representative of the debtor, have the right to become acquainted with the Register of Creditors' Claims.

(2) Each creditor who has submitted a creditor's claim, and the representative of the debtor has the right to become acquainted with the claims submitted by the creditors and the evidence for the grounds thereof, commencing from the eighth day after expiry of the deadline for the submission of the creditors' claims.

(3) The liquidator involved in the insolvency proceedings specified in Article 3(1) of Council Regulation No 1346/2000 commenced in another Member State may use the right specified in Paragraph two of this Section, but the liquidator involved in the insolvency proceedings specified in Article 3(2) of this Regulation may only do so if he or she has submitted the claims of creditors in the interests of the creditors.

Section 80. Complaints Regarding the Recognition, Non-Recognition or Partial Recognition of the Creditors' Claims

(1) A creditor is entitled to appeal to a court the decision of the administrator on non-recognition or partial recognition of his or her claim within two weeks from the day of receipt of this decision.

(2) The creditor is entitled to appeal to a court the decision of the administrator on recognition of another creditor's claim not later than three weeks after expiry of the deadline for the submission of the creditors' claims. If the relevant creditor's claim has been submitted before expiry of the deadline for the submission of the creditors' claims, the creditor is entitled to appeal to a court the decision of the administrator on recognition of another creditor's claim not later than within one month after the day of taking of the decision.

(3) A debtor's representative is entitled to appeal the decision of the administrator to a court, with which the claim arising from a transaction is approved, which the debtor's representative does not recognise, not later than three weeks after expiry of the deadline for the submission of the creditors' claims. If the relevant creditor's claim has been submitted after expiry of the deadline for the submission of the creditors' claims, the creditor is entitled to appeal to a court the decision of the administrator with which the claim, not recognised by the debtor's representative, and arising from the transaction is approved, not later than within one month after the day of taking of the decision.

(4) Complaints in connection with the recognition, non-recognition or partial recognition of creditors' claims may be submitted to the court in which the respective insolvency proceedings have been proclaimed.

(5) The creditor or debtor's representative may request that the court restores the procedural time period for the submission of a complaint, if it has not been possible to lodge the complaint within the time period specified in this Law due to the fault of the administrator.

Chapter XIV
Duty to Inform Creditors

Section 81. Duty to Inform Creditors

(1) For ensuring the effective and lawful course of the insolvency proceedings of a legal person, in accordance with the procedures laid down in this Law, the administrator shall notify the creditors regarding:

1) the plan for the sale of the debtor's property;

2) the non-existence of property in the debtor's establishment;

3) the amount of the remuneration of the administrator;

4) the expenses of the insolvency proceedings of a legal person;

5) the plan for settling the claims of creditors;

6) the intention to renounce the claims;

7) the intention to enter into a settlement;

8) the intention to perform the cessation of the right to claim;

9) the extension of the deadline for selling of non-pledged property.

(2) The administrator shall notify the creditors of other matters which have significance during the course of the insolvency proceedings of a legal person.

(3) Unless it is laid down otherwise in this Law, the administrator shall provide information to the creditors electronically, drawing up the documents in accordance with the requirements for drawing up electronic documents laid down in laws and regulations.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 82. The Duty of Creditors to Address the Administrator

If creditors have objections to the information referred to in Section 81 of this Law, they have a duty to inform the administrator accordingly within five days after receipt of this information, unless it is laid down otherwise in this Law.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 83. Administrator's Actions after Receipt of the Objections by Creditors

Unless it is laid down otherwise by this Law, after receipt of the objections by creditors regarding the information referred to in Section 81 of this Law, the administrator shall evaluate the grounds for the objections and:

1) if the objections are taken into account, make the appropriate changes and notify all the creditors thereof; and

2) if the objections are not taken into account, provide a reasoned response to the creditor.

Section 84. Rights of Creditors

If the creditors do not agree with the decision notified by the administrator, they have the following rights:

1) to propose the convening of a creditors' meeting in conformity with the provisions of Section 88, Paragraph one, Clause 2, Sub-clauses (a) and (b) of this Law, in order to decide on the matters referred to in Section 89 of this Law;

2) to dispute the administrator's actions in accordance with the procedures laid down in this Law;

3) to apply to the court with a claim against the administrator for the losses caused.

Section 85. Administrator's Operational Report

(1) After proclamation of the insolvency proceedings of a legal person, the administrator shall prepare and send the administrator's operational report electronically to the creditors and Insolvency Administration, each quarter.

(2) The Cabinet shall determine the form of the administrator's operational report and the procedures for filling in thereof.

Chapter XV
Creditors' Meeting

Section 86. Procedure of a Creditors' Meeting

(1) A creditors' meeting is an organised form of creditor's joint operations for the taking of creditors' decisions.

(2) The administrator shall lead the creditors' meeting.

(3) Representatives of the Insolvency Administration may be present at a creditors' meeting.

(4) A creditor may participate in a creditors' meeting in person or with the intermediation of a representative. A creditor's representative is obliged to show a document certifying representation to the chairperson of the creditors' meeting.

(5) If the liquidator involved in the insolvency proceedings specified in Article 3(1) or 3(2) of Council Regulation No 1346/2000 commenced in another Member State participates in the creditors' meeting, he or she shall present to the chairperson of the creditors' meeting a copy of the court adjudication regarding the appointment of the liquidator involved in the insolvency proceedings specified in Article 3(1) or 3(2) of the referred to Regulation or an appropriately certified copy of another confirmation and a translation of the adjudication or confirmation, certified in accordance with the specified procedures, into the official language.

(6) A creditor may authorise not more than one person to represent such creditor at a creditors' meeting. The authorised person shall represent the creditor to the full amount of the creditor's claim.

(7) If more than 100 creditors are registered in the Register of Creditors' Claims, the creditors who represent not less than one per cent of the whole amount of the claims of all the creditors shall participate in the creditors' meeting. In such case one person may represent several creditors.

(8) The administrator shall provide to the creditors, whose claims do not exceed one per cent of the whole amount of all the recognised claims, the information necessary, as well as support, in order that such creditors might unite and authorise a joint representative to vote on their behalf.

(9) A creditors' meeting is entitled to take decisions regardless of the amount of the claims of creditors represented therein, if an entry has been made in the Insolvency Register regarding the convening of the creditors' meeting. The creditors' meeting shall take decisions with a simple majority vote, except in the cases specified in this Law. The non-participation of the debtor's representatives shall not be an obstacle to the course of the creditors' meeting.

(10) Creditors with voting rights are entitled only to vote "for" or "against".

(11) The creditors' meeting is entitled to take decisions only in those matters which are indicated in the application as matters on the agenda of the respective creditors' meeting, except the matter regarding the convening of the creditors' meeting. The matters to be included on the agenda of the creditors' meeting shall be determined by the administrator upon his or her own initiative, as well as taking into account the matters included in the request for convening the creditors' meeting.

(12) The course of the creditors' meeting shall be minuted. The chairperson of the creditors' meeting shall ensure the minute-taking. The chairperson of the creditors' meeting and a representative of the creditors' meeting elected by the creditors present, as well as any creditor who has participated at the creditors' meeting and expressed a wish to sign the minutes of the creditors' meeting, shall sign the minutes of the creditors' meeting not later than within 10 days from the day of convening the creditors' meeting.

(13) The creditors and the debtor's representative have the right to become acquainted with the minutes of the creditors' meeting. The administrator shall issue the appropriately certified minutes of the creditors' meeting within five days after receipt of the written request.

(14) The administrator shall submit the signed minutes and annexes thereto to the responsible authority which makes the entries in the Insolvency Register, within five working days after signing thereof.

(15) A creditors' meeting may be suspended once for a period of up to two weeks, if more than half of the creditors with voting rights present vote for this, indicating the time of the recommencement of the meeting, the address of the location and the agenda. The administrator shall submit an application regarding the suspension of a creditors' meeting, and the time for the recommencement of the meeting, the address of the location and the agenda, as well as the minutes of the relevant creditors' meeting, to the responsible authority which makes the entries in the Insolvency Register.

Section 87. Determination of the Number of Creditors' Votes in a Creditors' Meeting

(1) The administrator shall determine the number of votes for each creditor at a creditors' meeting.

(2) Votes shall be granted in a creditors' meeting to such non-secured creditor, as well as to such secured creditor in a non-secured and secured part of the claim in the case referred to in Section 90 of this Law, whose claim is submitted within the time period for the submission of the creditors' claims referred to in Section 73, Paragraph one of this Law and whose claim has been recognised by the administrator. If the administrator has taken a decision to partially recognise a creditor's claim, votes shall be granted to the creditor according to the amount of the recognised main claim.

(3) The number of votes in a creditors' meeting shall be determined according to the amount of a creditor's principal claim, granting one vote for each whole euro.

(4) If the liquidator involved in the insolvency proceedings specified in Article 3(1) or 3(2) of Council Regulation No 1346/2000 initiated in another Member State against a debtor has submitted the creditors' claims against a debtor in insolvency proceedings initiated in Latvia, then the liquidator involved in the insolvency proceedings specified in Article 3(1) or 3(2) of this Regulation shall acquire the rights of creditors in the amount of the submitted creditors' claims in accordance with the procedures laid down in laws and regulations.

(5) The creditors who are recognised as interested persons in accordance with Section 72 of this Law and persons who have acquired the right to claim against the debtor from interested persons within one year prior to the proclamation of the insolvency proceedings of a legal person, shall not have voting rights at the creditors' meeting.

(6) The creditors in whose creditors' claim the requirement referred to in Section 73, Paragraph four, Clause 6 of this Law is not indicated, and the creditor has not rectified the relevant deficiency, shall not have voting rights at the creditors' meeting.

[12 September 2013]

Section 88. Convening of a Creditors' Meeting

(1) The administrator shall convene a creditors' meeting:

1) upon his or her own initiative;

2) if it is requested by:

a) a creditor with voting rights whose claim is not less than one-tenth of the total amount of the claims of non-secured creditors with voting rights,

b) a secured creditor, in order to initiate the procedure referred to in Section 90 of this Law,

c) not less than three creditors regardless of the amount of the claim,

d) the debtor's representative,

e) the Insolvency Administration,

f) the liquidator involved in the insolvency proceedings specified in Article 3(1) of Council Regulation No 1346/2000 initiated against the debtor in another Member State.

(2) In the cases referred to in Paragraph one, Clause 2 of this Section, a list of the claimants, the amount of their claims, the meeting agenda and the reasons for the convening thereof, shall be included in the request.

(3) The administrator shall convene a creditors' meeting based on the request referred to in Paragraph two of this Section within three weeks after the day of receipt of the request.

(4) Not later than two weeks prior to the date of the specified creditors' meeting, the administrator shall submit an application to the responsible authority, which makes the entries in the Insolvency Register, and indicate the date, time and address of the location of the creditors' meeting in the application. The notification referred to in Paragraph five of this Section shall be appended to the application.

(5) The administrator shall indicate the debtor's firm (name), the registration number, the total amount of the submitted and recognised creditors' claims, the amount of claims by secured and non-secured creditors and the agenda, in the notification of the creditors' meeting. If more than 100 creditors are registered in the Register of Creditors' Claims, in the notification of a creditors' meeting the administrator shall invite the creditors whose claims do not exceed one per cent of the entire amount of the recognised claims to unite and authorise one representative.

(6) Any other information which has significance for the course of the creditors' meeting may also be indicated in the notification.

Section 89. Competence of the Creditors' Meeting

In the cases specified in this Law, a creditors' meeting shall take a decision on the following:

1) remuneration of the administrator;

2) proposal for the removal of the administrator;

3) approval of the expenses of insolvency proceedings;

4) the manner of selling the debtor's property (Section 115, Paragraph 2.1), or the extension of deadline for the sale thereof;

5) further handling of the property that has been excluded from the plan for the sale of the property (Section 111, Paragraph seven).

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 90. Proposal for the Removal of an Administrator

(1) A decision on the proposal for the removal of an administrator may be taken if the administrator has not ensured the effective course of the insolvency proceedings. A decision on the proposal for the removal of an administrator shall be taken if two-thirds of the creditors with voting rights present vote in favour thereof.

(2) Secured creditors shall also participate in the voting regarding the proposal for the removal of an administrator.

(3) [25 September 2014].

(4) A representative appointed by the creditors' meeting shall submit to court the decision of a creditors' meeting on the proposal for the removal of an administrator.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 91. Complaints Regarding Decisions of the Creditors' Meeting

(1) The decision of a creditors' meeting may be appealed to a court which proclaimed the relevant insolvency proceedings of a legal person.

(2) The creditor or representative of a debtor may appeal the decision of a creditors' meeting if this is illegal or in contradiction with the overall interests of the creditors. A complaint may be lodged within two weeks after the creditors' meeting.

(3) The administrator may lodge a complaint regarding any decision of a creditors' meeting. A complaint may be lodged within two weeks after the creditors' meeting.

Chapter XVI
Property of a Debtor and Its Administration

Section 92. Concept of the Property of a Debtor

(1) Within the meaning of this Law, the property of a debtor is:

1) the immovable property and moveable property of a debtor, including funds;

2) funds acquired by alienating the property of a debtor;

3) the property recovered in accordance with Section 93 of this Law;

4) fruits that have been acquired from the property of the debtor during the insolvency proceedings of a legal person;

5) other property legally acquired during the insolvency proceedings of a legal person.

(2) If the insolvency proceedings specified in Article 3(2) of Council Regulation No 1346/2000 have been initiated against a debtor, the property indicated in Paragraph one of this Section shall be located in Latvia.

(3) Property which may not be recovered shall not be included in the list of debtor's property to which creditors' claims are to be addressed.

Section 93. Recovered Property

(1) Within the meaning of this Law, recovered property is funds, as well as other property which:

1) has been included in the property of the debtor during the insolvency proceedings of a legal person on the basis of rights to claim against third persons;

2) has been recovered, recognising the transactions as invalid;

3) has been recovered by reclaiming the debts covered (Section 99);

4) has been recovered by reclaiming the subject of a possessory pledge.

(2) The following shall be equated to recovered property:

1) funds and property which has been acquired from members of the administrative institutions of a legal person, based on the duty thereof to be liable for losses caused;

2) funds and property which has been acquired from the personally responsible members of a partnership, based on the duty thereof to be liable for the partnership's obligations;

3) funds which have been acquired from participants (shareholders) and the members of other administrative institutions in the criminal insolvency proceedings of a legal person and in other cases provided for by law.

Section 94. Property Belonging to Third Persons

(1) The list of property of a debtor, against which the claims of creditors are made, shall not include property in the possession of or held by the debtor, belonging to third persons.

(2) The administrator shall ensure the maintenance of property belonging to third persons until it is transferred to these persons. The third persons have the duty to cover expenses which has arisen in connection with the maintenance of property owned thereby, if these persons do not reclaim their property upon request of the administrator.

(3) If property belonging to third persons is alienated during the insolvency proceedings, the value of this property shall be reimbursed by the person due to whose fault the property owned by third persons has been alienated.

(4) This Section shall also be applicable in respect of funds or financial instruments which, based on the financial security agreement, have been used as security financing for the execution of obligations.

Section 95. Management of the Property of a Debtor

(1) After the proclamation of the insolvency proceedings of a debtor, the rights to manage the property of the debtor shall be acquired by the administrator.

(2) The administrator shall manage the property of the debtor, take measures for the recovery thereof and act with this property within the scope of the empowerment specified in this Law.

(3) The administrator shall manage property as an honest and careful proprietor.

(4) Monetary funds which are received during the course of managing the property of a debtor shall be deposited to a separate current account of the debtor.

Chapter XVII
Appeal of Transactions

Section 96. Recognition of Transactions as Invalid

(1) The administrator has the duty to evaluate the debtor's transactions and bring an action to court regarding the recognition of the respective transaction as invalid regardless of the type of transaction, if it has been concluded:

1) after the day of the proclamation of the insolvency proceedings of a legal person or four months prior to the day of the proclamation of the insolvency proceedings of a legal person and thereby losses have been caused to the debtor regardless of whether the person with whom or for whose benefit the transaction has been concluded, knew or did not know of the losses caused to the creditors;

2) within three years prior to the day of the proclamation of the insolvency proceedings of a legal person and thereby losses have been caused to the debtor, moreover the person with whom or for whose benefit the transaction has been concluded, knew or should have known of the causing of such losses.

(2) If the transaction through which losses have been caused to the debtor has been concluded with interested persons with respect to the debtor or for the benefit of such persons, it shall be considered that such persons have known of the causing of losses, unless they prove otherwise.

(3) A secured creditor may request that a transaction concluded by the administrator be declared invalid, if such a transaction is related to property pledged for security of a claim and the interests of the secured creditor have been injured.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 97. Appeal of Transactions Without Compensation

(1) The administrator has a duty to evaluate and bring an action to court regarding the transfer of the debtor's property or a part thereof given as a gift in accordance with the provisions of Section 1927 of the Civil Law.

(2) Paragraph one of this Section shall not apply to societies, foundations and similar organisations which perform donations or other type of gift within the scope of the usual activities thereof, if such a transaction does not differ significantly from the transactions concluded in the previous year prior to the day of the proclamation of the insolvency proceedings of a legal person.

(3) Regulations regarding transactions without compensation shall be applicable to a transaction which has been concluded in the three years prior to the day of the proclamation of the insolvency proceedings of a legal person, or thereafter, and in which the inequality of the mutual obligations of the parties indicate that a donation has actually been made.

(4) A donation may be appealed and the return requested if it has been illegal or has not been used for the purposes provided for.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 98. Recognition of Pledge Contracts as Invalid

(1) A pledge contract shall be recognised as invalid if the pledge rights have been founded after making of the entry in the Insolvency Register regarding proclamation of the insolvency proceedings of the debtor.

(2) The administrator has a duty to bring an action to court regarding the recognition of a pledge contract as invalid, if the circumstances referred to in Paragraph one of this Section are established.

Section 99. Return of Amounts Paid for the Settlement of Debts

(1) The amounts of money which the debtor has paid for covering the debt within the six months prior to the day of proclamation of the insolvency proceedings of a legal person, as well as after the day of proclamation of the insolvency proceedings of a legal person (except the amounts of money which the administrator has paid during the insolvency proceedings of a legal person), shall be repayable if at least one of the following conditions is established:

1) the payment has been made prior to the coming into effect of the time period for the honouring of obligations, if other payment obligations have not been honoured for which the time period for honouring has come into effect, and it is possible to renew the obligations and rights of the parties referred to in Paragraph three of this Section;

2) the debt has been paid to interested persons in respect of the debtor, and other obligations, whose time period for honouring has come into effect prior to the time period for the honouring of the obligations of interested persons, have not been honoured. This provision shall also apply to debts collected by bailiffs, from which the expenses necessary for the enforcement of a judgment have been deducted.

(2) The creditor shall repay the amount of money to the debtor which the debtor has paid within the last three months prior to the day of the proclamation of the insolvency proceedings of a legal person, in order to prevent the proclamation of the insolvency proceedings of the debtor after the application by the creditor of the recipient of the amount of money.

(3) If the amounts paid regarding settlement of debts are returned in the cases provided for in Paragraphs one and two of this Section, the obligations of parties (including reinforcement of obligations) and the respective rights that were in effect until the settlement of the debts shall be renewed.

Section 100. Requirements for Appeal or Cancellation of Transactions against the Successors to Rights and Obligations

(1) The administrator has the duty to bring an action to court regarding the appeal or discharge of a transaction also against the heirs of the transaction participants.

(2) The administrator has the duty to bring an action to court against other successors to rights and obligations, if:

1) at the moment of the takeover of rights, the successor to rights was an interested person in relation to the debtor;

2) the rights were acquired without compensation.

Chapter XVIII
Execution and Termination of Contracts

Section 101. Administrator's Right to Choose

(1) If the contract entered into by the debtor has not been executed or has been partially executed on the day of the proclamation of the insolvency proceedings of a legal person, the administrator is entitled to request the execution from the other contracting party or to unilaterally withdraw from the contract. The administrator has the right to execute the contract if such action does not reduce the debtor's assets.

(2) If the administrator unilaterally withdraws from the execution of the contract, the other contracting party has the right to submit his or her creditor's claim.

(3) The continuation of the execution of contracts which have not been terminated in the cases provided for by law, as well as the execution of the contracts which have been entered into by the administrator on behalf of the debtor with third persons during the insolvency proceedings of a legal person, shall be financed from the debtor's funds.

(4) If the debtor is an insurer, then the administrator, assessing the interests of the policy-holder, shall evaluate the need for the transfer, termination or continuation of the insurance contracts entered into, and perform all the lawful activities in order to transfer, terminate or continue the insurance contracts entered into.

Section 102. Termination of an Authorisation Contract and the Termination of Procure and Ordinary Franchises

(1) The task given by the debtor to his or her authorised representative (including the proctor and person with a commercial power of attorney) in respect of his or her property, to which creditor claims are addressed, shall lose effect from the day of the proclamation of the insolvency proceedings of a legal person.

(2) If the execution of the task is connected to the risk of losses, the authorised representative (including the proctor and person with a commercial power of attorney) may execute this until the day when the administrator takes over the debtor's property. In respect of expenses which have been incurred by the authorised representative (including the proctor and person with a commercial power of attorney) in connection with the execution of tasks, he or she may submit his or her creditor's claim to the administrator.

Section 103. Termination of an Employment Contract

(1) After the proclamation of the insolvency proceedings of a debtor, the administrator has the right to terminate the employment contract with the employee of the debtor. In such case the provisions of Section 101, Paragraph one, Clauses 9 and 10 of the Labour Law shall be considered to be lawful grounds for the termination of the employment contract, and the provisions of Section 103, Paragraph one, Clause 3 of the Labour Law regarding the time period for the termination of an employment contract shall not be applied. If an employee has entered into a collective agreement, the administrator has the right not to apply the norms thereof regarding the termination of an employment contract, including the costs related to the termination.

(2) The norms of the Labour Law regarding collective redundancy shall not be applied to the insolvency proceedings of a legal person.

Section 104. Restrictions on a Set-off

A set-off in the insolvency proceedings of a legal person shall be permissible if the mutual claims of the debtor and creditor have arisen at least six months prior to the proclamation of the insolvency proceedings of a legal person.

Section 105. Cession of Claims

The administrator may cede the debtor's claims against third persons if the recovery of debts may be hindered or extended.

Chapter XIX
Transition from Insolvency Proceedings of a Legal Person to Legal Protection Proceedings

Section 106. Admissibility of Legal Protection Proceedings

The transition from insolvency proceedings of a legal person to legal protection proceedings shall not be permissible if the insolvency proceedings of a legal person have been proclaimed for a debtor on the basis of Section 57, Paragraph one, Clause 7, 8, or 9 of this Law.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 107. Transition to Legal Protection Proceedings

(1) The legal protection proceedings shall be applicable to a debtor, in conformity with the regulations of the extrajudicial legal protection proceedings. In such case the following persons are entitled to submit an application for the termination of the insolvency proceedings of a legal person, the proclamation of legal protection proceedings, as well as to draw up a plan for the legal protection proceedings:

1) the debtor's representative;

2) the administrator;

3) the liquidator involved in the insolvency proceedings specified in Article 3(1) of Council Regulation No 1346/2000 initiated against the debtor in another Member State;

4) a creditor or group of creditors.

(2) When drawing up and co-ordinating a plan of measures of the legal protection proceedings, the provisions of this Law shall not be applicable regarding the agreement of the debtor with the administrator and creditors regarding the candidate for the office of administrator in extrajudicial legal protection proceedings, nor is the opinion of the administrator required, if the plan of measures of the legal protection proceedings has been drawn up by the administrator. The plan of measures of the legal protection proceedings shall be considered to be supported if it has been co-ordinated by the majority of the creditors specified in Section 42, Paragraph three of this Law.

(3) The costs of the insolvency proceedings of a legal person and the remuneration for the drawing up of the plan of measures of the legal protection proceedings shall be included in the plan of measures of the legal protection proceedings, and they shall be covered in the full amount prior to the honouring of the creditor's claim.

(4) Employees' claims which are covered by the resources of the guarantee fund for employees' claims shall be included in the plan of measures of the legal protection proceedings and be covered in the full amount prior to covering the costs of the insolvency proceedings of a legal person.

(5) If the insolvency proceedings specified in Article 3(2) of Council Regulation No 1346/2000 are initiated against a debtor in Latvia, prior to the submission of an application for the legal protection proceedings to court, the written consent for the plan of measures of the legal protection proceedings from the liquidator involved in the insolvency proceedings specified in Article 3(1) of this Regulation shall be received.

Section 108. Informing Creditors of the Application of Legal Protection Proceedings

Prior to submitting the relevant application to court the person who has drawn up and co-ordinated the plan of measures of the legal protection proceedings has a duty to inform the administrator and creditors, as well as the debtor accordingly, if the plan has not been drawn up by the debtor's representative.

Section 109. Effects of the Proclamation of Legal Protection Proceedings and Termination of Insolvency Proceedings of a Legal Person

(1) After the court has rendered an adjudication regarding the implementation of legal protection proceedings, the effects of the proclamation of the insolvency proceedings of a legal person shall be terminated and the effects of the implementation of legal protection proceedings shall take effect, and the operations of the debtor's administrative body shall also be restored.

(2) After the court has rendered an adjudication regarding the implementation of legal protection proceedings, the administrator shall hand over all his or her property into the ownership of the debtor, within seven days.

Chapter XX
Sale of Property in Insolvency Proceedings of a Legal Person

Section 110. Property to be Sold

The debtor's property indicated in Section 92 of this Law shall be sold in insolvency proceedings of a legal person, except for money.

Section 111. Sale of a Debtor's Property

(1) Within two months after the day of the proclamation of the insolvency proceedings of a legal person, the administrator shall draw up a plan for the sale of the debtor's property or a report regarding the non-existence of the debtor's property.

(2) The sale of the debtor's property shall take place for the highest price possible, in order to ensure the covering of the claims of creditors.

(3) The property of a debtor serving as security (pledged property) shall be sold in accordance with the provisions of Section 116 of this Law.

(4) The administrator shall take the decision on the method of sale of the non-pledged property of a debtor (with or without an auction).

(5) Funds which are connected to the sale of the debtor's property shall be transferred into the debtor's account.

(6) All the debtor's property is to be sold within six months after the proclamation of the insolvency proceedings of a legal person. The administrator may extend the term for selling the non-pledged property of the debtor for up to six months, notifying the creditors thereof in accordance with the procedures laid down in Section 81 of this Law, and substantiating the reason for extending the deadline. If the creditors do not agree to extended term for selling the non-pledged property of the debtor, they have the right to propose the convening of a creditors' meeting in accordance with the provisions of Section 84, Clause 1 of this Law.

(7) If it is impossible to sell the debtor's property or the property sales costs exceed the projected revenues, the administrator shall exclude it from the plan for the sale of the property and shall, without delay, notify all creditors thereof in accordance with the procedures laid down in Section 81 of this Law, inviting them to retain the property to themselves at its initial price. A creditor, who agrees to decrease the debt by the value of the property the administrator was unable to sell, shall notify the administrator thereof within two weeks after sending of the administrator's invitation. If there is more than one creditor wishing to retain the same property, the administrator shall organise an auction between these creditors in accordance with the procedures laid down in the Civil Procedure Law. If creditors do not agree to exclusion of the property from the plan for the sale of the property, they have the right to propose the convening of a creditors' meeting in accordance with the provisions of Section 84, Clause 1 of this Law.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 112. Report on the Non-Existence of a Debtor's Property

(1) If the administrator establishes that the debtor has no property or its value is lower than the deposit amount, he or she shall draw up a report on the fact of non-existence of the debtor's property, indicating:

1) the debtor's financial status;

2) an evaluation of the possibility of recovering the debtor's property indicated in Section 93 of this Law;

3) the costs of the planned insolvency proceedings of a legal person, if these are to be continued;

4) a proposal to ensure the financing for the insolvency proceedings of a legal person;

5) a proposal for the further solution of the insolvency proceedings of a legal person - to terminate or to continue the insolvency proceedings of a legal person;

6) information regarding the intent to recourse against the debtor's board of directors in accordance with Section 72.1 of this Law.

(2) The administrator shall send the report to all creditors on the non-existence of the debtor's property without delay, after expiry of the time period referred to in Section 111, Paragraph one of this Law, in accordance with the procedures laid down in this Law.

(3) If a proposal regarding the financing of the insolvency proceedings of a legal person is received within 15 days from the day when the report is sent on the non-existence of the debtor's property, the administrator shall enter into the agreement specified in Section 168, Paragraph three of this Law and continue the insolvency proceedings of a legal person.

(4) If no objections by the creditors are received within 15 days from the day when the report is sent on the non-existence of the debtor's property, the administrator shall implement the proposal for the further solutions of the proceedings indicated in the report on the non-existence of the debtor's property.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 113. Plan for the Sale of a Debtor's Property

(1) The administrator shall include the following information in the plan for the sale of the debtor's property:

1) a list of the non-pledged property of the debtor;

2) an evaluation of the non-pledged property of the debtor;

3) the estimated amount of funds which are planned to be acquired by selling the non-pledged property of a debtor, indicating separately the amount of funds which are planned to be acquired with or without an auction, additionally indicating the amount of funds which are planned to be acquired by selling the debtor's property as a whole with or without an auction;

4) the method of sale of the non-pledged property of a debtor (with or without an auction);

5) a list of the pledged property of the debtor;

6) an evaluation of the pledged property of the debtor;

7) the method of sale of the pledged property of a debtor co-ordinated with the secured debtor (with or without an auction);

8) the amount of funds planned to be acquired by selling the pledged property of a debtor;

9) information regarding the cession of claims, if such is provided for;

10) the source of financing for the insolvency proceedings of a legal person;

11) the planned costs of the insolvency proceedings of a legal person - the remuneration of the administrator and expenses of the proceedings;

12) the deadline for the sale of the debtor's property;

13) information regarding the intent to recourse against the debtor's board of directors in accordance with Section 72.1 of this Law.

(2) The administrator shall send the plan for the sale of the debtor's property to all creditors, the debtor's representative and the guarantor without delay, after expiry of the time period referred to in Section 111, Paragraph one of this Law, in accordance with the procedures laid down in this Law.

(3) Within 15 days from sending of the plan for the sale of the debtor's property the creditor and debtor's representative have the right to submit to the administrator a proposal for selling of the debtor's property as a whole. Each creditor has the right to object to the administrator's proposal for the method of sale of the non-pledged property of the debtor, the cession of the claims offered and the planned costs of the insolvency proceedings of a legal person.

(4) If the administrator, when evaluating the objections received, recognises them as justified, he or she shall update the plan accordingly and notify the parties involved thereof. If the administrator does not recognised the objections received as justified, he shall provide a reasoned response to the submitter.

(5) The administrator shall commence the sale of the debtor's property in accordance with the method of sale proposed in the plan for the sale of the debtor's property not sooner than two weeks after sending of the plan to the creditors, the debtor's representative and the guarantor, but not later than one week after the plan being considered as harmonised.

(6) If it is intended to sell the debtor's property without auction in the plan for the sale of the debtor's property and execution proceedings have been commenced in respect of this property, the administrator, when commencing the sale of the property, shall inform the bailiff who is organising the specific execution proceedings accordingly.

(7) If the implementation of the plan for the sale of the debtor's property is not possible, the administrator shall inform the creditors thereof without delay, sending an updated plan for the sale of the debtor's property. The updated plan for the sale of the debtor's property shall be harmonised in accordance with the procedures laid down in Paragraphs three and four of this Section.

(8) If, prior to the preparation of the plan for the sale of the debtor's property, the administrator establishes movable property in the debtor's property which is perishing or becoming significantly worthless, he or she shall sell it without delay for as favourable a price as possible, informing the creditors of this and of the funds acquired after sale.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 114. Sale of the Debtor's Establishment

(1) When preparing the plan for the sale of the debtor's property, the administrator shall evaluate the option of selling the debtor's establishment as a whole.

(2) If the pledged property of the debtor is also contained in the establishment, the administrator shall receive the secured creditor's consent for the sale of the establishment.

(3) When selling an establishment as a whole, the creditor's gain from the sale of the establishment must be greater than if the debtor's property was sold separately.

(4) If the administrator has taken a decision to sell the establishment at auction, then the auction shall take place in accordance with the procedures by which the sale of immovable property is intended, and this shall be performed by the administrator.

(5) When taking a decision to sell the establishment, the administrator shall draw up a list in which the tangible and intangible items contained in the establishment to be sold and the economic gain belonging to the establishment shall be included.

(6) In case of the sale of the establishment, all the rights and liabilities of the debtor shall be transferred to the beneficiary, except the debtor's obligations which have arisen prior to the proclamation of the insolvency proceedings of a legal person.

(7) The decision to approve the statement of auction shall be taken by the court examining the matter of the debtor's insolvency proceedings.

Section 115. Auction of a Debtor's Property

(1) If the debtor's property is sold at auction, the auction thereof shall be carried out and the ownership rights recorded in the beneficiary's name in accordance with the provisions of the Civil Procedure Law regarding the sale of property in a compulsory auction, unless otherwise laid down in this Law.

(2) If the first auction of immovable property within the scope of the insolvency proceedings of a legal person is recognised as not having taken place, the second auction shall be organised according to the regulations of the first auction by descending step.

(21) If the second auction of immovable property within the scope of the insolvency proceedings of a legal person is recognised as not having taken place, the administrator shall, without delay, send to the creditor the adjusted plan for the sale of the debtor's property, with a proposal for further handling of the property.

(22) If a creditors' request to organise the third auction has been received within 15 days after sending of the adjusted plan for the sale of the debtor's property, the costs of the auction shall be covered by the creditors who have requested it, by arranging this in writing with the administrator. The rules for the third auction shall be the same as for the second auction. If the amount of money necessary for organising the auction has not been paid by the deadline specified in the agreement, the administrator shall decline the request to organise the third auction.

(23) If no objections have been received from the creditors within 15 days after sending of the adjusted plan for the sale of the debtor's property, the administrator shall proceed with the solution he or she has proposed.

(3) The administrator shall perform the activities of the bailiff in connection with the auction of the debtor's property specified in the Civil Procedure Law.

(4) After the court has approved the statement of the auction or has taken a decision to register the title to the property in that creditor's name who has expressed the wish to retain the property, the administrator shall draw up calculations stating the expenses of the auction, the remuneration for organising the auction, value added tax if applicable to the auction price, the current tax payments for the immovable property for a time period starting from the proclamation of the insolvency proceedings to the last day of the month when a court adjudication approving the immovable property auction has entered into effect, and the amount payable to the creditors. Within 10 days after receipt of the calculation, the winning bidder, debtor or creditors may appeal the calculation of the administrator to the court where the respective insolvency proceedings matter of the legal person has been initiated.

(5) If none of the participants of the auction are bidding at the auction, the security deposit shall not be reimbursed and shall be included in the debtor's property instead.

(6) The administrator is entitled to set a participation fee for the second auction up to 0.1 per cent of the valuation of the immovable property, however not less than 50 euro.

(7) If the administrator has set a participation fee for the auction, the persons willing to participate in the second auction of immovable property shall transfer the participation fee to the debtor's account specified by the administrator. Before the auction, the administrator shall check whether the participation fee has been transferred to this account.

(8) The participation fee contributed by the participants of the auction shall not be reimbursed and shall be included in the debtor's property instead.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 116. Sale of the Property of the Debtor Serving as Security (Pledged Property)

(1) A secured creditor has the right to request the sale of the property of a debtor serving as security (pledged property) after expiry of the deadline specified in Section 63, Paragraph one, Clause 4 of this Law.

(2) The property of the debtor serving as security (pledged property) shall be sold in auctions in accordance with the procedures laid down in the Civil Procedure Law and in accordance with the provisions of Section 115 of this Law, if the secured creditor has not agreed with the administrator on selling the property without an auction. The administrator shall perform the activities of the bailiff specified in the Civil Procedure Law in respect of the auction of the debtor's property. By agreeing with the secured creditor on the sale of pledged property, the administrator shall ensure that this property is sold for as high a price as possible, taking into account the interests of non-secured creditors.

(3) If the property of a debtor serving as security (pledged property) is sold at an auction, then in cases when the auction is considered not to have taken place in accordance with the provisions of Sections 615 and 616 of the Civil Procedure Law, and the secured creditor wishes to keep the property for himself or herself, such creditor has a duty to cover all the expenses of the auction, including the costs for evaluation of the property of the debtor serving as security (pledged property), remuneration for organising the auction and other expenses related to organising the auction, as well as the immovable property tax payments due from the insolvency proceedings proclamation day up to the immovable property auction day.

(31) If the property of a debtor serving as security (pledged property) is sold at an auction, then in cases when the auction is considered not to have taken place in accordance with the provisions of Section 614 of the Civil Procedure Law, and the secured creditor does not wish to keep the property for himself or herself, the administrator shall agree with the secured creditor on further handling of the property. If the secured creditor requests the third auction, it shall be organised in accordance with the procedures laid down in Section 115, Paragraph 2.2 of this Law. If the administrator fails to reach an agreement with the secured creditor on further handling of the property, including on selling of the property without an auction, or establishes the fact of the circumstances referred to in Section 111, Paragraph seven of this Law, the administrator shall take a decision on further handling of the property and shall notify the secured creditor thereof in accordance with the procedures laid down in Section 81 of this Law. If the secured creditor has any objections in respect of the received notification, it shall express them in accordance with the procedures laid down in Section 82 of this Law.

(4) If by selling the pledged property of a debtor, an amount of money is received which exceeds the secured creditor's claims and auction expenses, these funds shall be transferred to the debtor's property with which other claims of creditors shall be settled.

(5) If, by selling the pledged property of a debtor, an amount of money is received which does not cover the claims of the secured creditors, after taking of the decision by the administrator the relevant creditors shall acquire the rights of a non-secured creditor for the part of the claim not covered. The amount of the main claim not covered and the ancillary claim not covered shall be indicated separately in the administrator's decision. If a secured creditor has submitted his or her claims to the administrator within the deadline specified in Section 73, Paragraph one of this Law, the voting rights for the part of the claim not covered shall be granted to the secured creditor in accordance with the procedures laid down in Section 87 of this Law.

(6) When settling the secured creditor's claim from funds received by selling the pledged property, the main claim of this claim shall be covered first, followed by the interest and finally the penalties.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Chapter XXI
Settling the Claims of Creditors in the Insolvency Proceedings of a Legal Person

Section 117. List of the Costs of the Insolvency Proceedings of a Legal Person and the Plan for Settling the Claims of Creditors

(1) Within 15 days after implementation of the plan for the sale of the debtor's property, the administrator shall draw up a list of the costs of the insolvency proceedings of a legal person and a plan for settling the claims of creditors in accordance with the procedures laid down in Section 118 of this Law.

(2) The administrator shall send all the creditors the list of the costs of the insolvency proceedings of a legal person and the plan for covering the claims of creditors without delay after expiry of the deadline specified in Paragraph one of this Section, in accordance with the procedures laid down in this Law.

(3) The administrator shall commence the settling of the claims of creditors in accordance with the list of the costs of the insolvency proceedings of a legal person and the plan for covering the claims of creditors, if no objections by the creditors are received within 15 days after sending of the list of the costs of the insolvency proceedings of a legal person and the plan for covering the creditors' claims.

(4) If objections are received in respect of the plan for settling the claims of creditors within 15 days after sending of the list of the costs of the insolvency proceedings of a legal person and the plan for settling the creditors' claims and the administrator, when evaluating the objections received recognises them as substantiated, he or she shall update the plan accordingly and notify the creditors thereof. If the administrator does not recognise the objections received as substantiated, he shall provide a reasoned response to the submitter thereof.

(5) If objections are received in respect of the costs of the insolvency proceedings of a legal person within 15 days after sending of the list of the costs of the insolvency proceedings of a legal person and the plan for settling the claims of creditors, the decision to approve the costs of the insolvency proceedings of a legal person shall be taken by the creditors' meeting.

(6) Within 15 days after implementation of the plan for settling the claims of creditors, the administrator shall notify the creditors accordingly.

(7) If at the time of drawing up a list of the expenses of the insolvency proceedings of a legal person and the plan for settling the claims of creditors legal proceedings are in progress which have been initiated or resumed by the deadline set forth by the court, because it has been established that a dispute about the rights exists, then, when examining the complaint on the administrator's decision in respect of recognition, non-recognition or partial recognition of creditor's claims, the terms referred to in this Section shall commence on the day when the court decision in the abovementioned court proceedings enters into effect.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 118. Procedures for Settling the Creditors' Claims in Insolvency Proceedings of a Legal Person

(1) The costs of the insolvency proceedings of a legal person shall be covered in full in the first place, from the debtor's funds, including funds acquired by alienating the debtor's property, or from other sources of financing of the insolvency proceedings of a legal person (the funds of creditors, other natural persons or legal persons), except funds which have been acquired in the case specified in Section 116 of this Law.

(2) After settling in full of the costs of the insolvency proceedings of a legal person specified in Paragraph one of this Section, the claim of the Insolvency Administration shall be settled, if the claims of the debtor's employees are settled from the resources of the guarantee fund for employees' claims in accordance with the Law On Protection of Employees in Case of Insolvency of Employer.

(3) After settling of the claims specified in Paragraph two of this Section in full, the following employees' claims shall be settled:

1) work remuneration for the last three months of employment legal relationships in the 12 month period prior to the proclamation of the employer's insolvency proceedings of a legal person;

2) reimbursement for the annual paid leave, the right to which is based on the 12 month period prior to the proclamation of the employer's insolvency proceedings;

3) reimbursement for other type of paid leave in the last three months of employment legal relationships within the 12 month period prior to the proclamation of the employer's insolvency proceedings of a legal person;

4) severance pay in connection with the termination of employment legal relationships in the minimum amount specified in the law, the right to which was acquired not sooner than in the 12 month period prior to the proclamation of the employer's insolvency proceedings of a legal person;

5) compensation for harm in connection with an accident at work or an occupational disease for the full unpaid time period until the proclamation of the employer's insolvency proceedings of a legal person and the amount of compensation for harm for four years in advance, if the accident at work has taken place or the occupational disease acquired until 1 January 1997, as well as where an employee who is not considered as an insured person in accordance with the Law On Mandatory Social Insurance Against Accidents and Work and Occupational Diseases whose occupational disease, which has arisen due to the employee performing work in hazardous work conditions until 1 January 1997, has been determined after 1 January 1997;

6) payments of State social insurance mandatory contributions and personal income tax which are related to the claims referred to in this Paragraph.

(4) Tax claims of the tax administration (creditor) which are submitted within the deadline for submission of the creditors' claims referred to in Section 73, Paragraph one of this Law, shall be settled in the amount of the basic debt after payment of the insolvency proceedings of a legal person and the settling of the claims of creditors specified in Paragraph two of this Section.

(5) After covering of the expenses of the insolvency proceedings of a legal person referred to in Paragraph one of this Section and the settlement of the creditors' claims specified in Paragraphs two, three, and four of this Section, the remaining funds of the debtor shall be divided for the settlement of the remaining claims of those non-secured creditors in the amount of the principal debt (without interest) who have submitted their claims by the deadline for the submission of the creditors' claims referred to in Section 73 of this Law. At this round, the claims of secured creditors shall also be settled for the non-secured part thereof and the part not covered in the claims of secured creditors in accordance with Section 76 of this Law, if the claims of secured creditors have been submitted by the deadline referred to in Section 73 of this Law.

(6) If there are insufficient debtor's funds to settle in full all the claims of creditors referred to in Paragraph five of this Section, the respective claims shall be settled in proportion to the amount due to each creditor.

(7) [25 September 2014].

(8) [25 September 2014].

(9) From the debtor's funds remaining after settling the claims of non-secured creditors in the amount of the basic debt, the ancillary claims of non-secured creditors shall be settled (in proportion to the amount due to each creditor).

(10) The debtor's funds remaining after settling the costs of the insolvency proceedings of a legal person indicated in this Section and settling the creditors' claims shall be divided to the participants of the debtor (shareholders) or members in proportion to the size of each investment, the debtor (natural person), the heir (in respect of an inheritance) or persons yielding the property of an association or foundation in accordance with laws and regulations or the articles of association of the respective association or foundation.

(11) If the insolvency proceedings specified in Article 3(2) of Council Regulation No 1346/2000 have been initiated against a debtor in Latvia, the administrator shall transfer the appropriate funds remaining after settlement of the costs of the insolvency proceedings of a legal person specified in Paragraph one of this Section and the settlement of the creditors' claims specified in Paragraphs two, three, four, five, and nine of this Law, to the liquidator involved in the insolvency proceedings specified in Article 3(1) of the Regulation referred.

(12) From the funds acquired by selling the debtor's establishment, the costs connected to the sale of the property and the claims of secured creditors shall be covered in the first place in the amount of the pledged property, but not exceeding the amount of the security. The remaining funds shall be divided in accordance with the procedures laid down in this Section.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 118.1 Procedures for Settling the Creditors' Claims in Case when a Secured Creditor's Claim has been Filed where the Right to Claim is Conditional

(1) Any funds raised from selling a debtor's property serving as security for a secured creditor's claim where the right to claim is conditional shall be deposited by the administrator in an escrow account opened by the Insolvency Administration with the Treasury until the moment when the secured creditor has submitted to the Insolvency Administration a notification regarding the materialisation of the condition.

(2) The funds referred to in Paragraph one of this Section shall be kept not longer than for three years after selling of the pledged property in favour of the secured creditor whose right to claim was conditional, or five years after proclamation of the insolvency proceedings of the debtor, whichever occurs earlier.

(3) If the secured creditor whose right to claim was conditional has specified the date by which the condition should materialise in the application, and has failed to submit a notification to the Insolvency Administration regarding the materialisation of the condition, then the funds referred to in Paragraph one of this Section shall be kept until the date specified in the application.

(4) If the secured creditor whose right to claim was conditional has failed to notify the Insolvency Administration regarding the materialisation of the condition by the deadline laid down in Paragraph two or three of this Section, then the funds referred to in Paragraph one of this Section shall be disbursed in accordance with the provisions of Section 118 of this Law. If the condition has materialised which is contingent to the secured creditor's right to claim and the amount of the claim is lower than the cash amount referred to in Paragraph one of this Section, the remaining funds shall be disbursed in accordance with the provisions of Section 118 of this Law.

(5) The Cabinet shall determine the procedures for depositing the cash in the escrow account opened by the Insolvency Administration with the Treasury and disbursing it to the creditors that has been raised by selling the debtor's property serving as security for a secured creditor's claim where the right to claim is conditional.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 119. Termination of Insolvency Proceedings of a Legal Person

(1) If no objections from creditors have been received within 15 days after sending of the notification regarding the implementation of the plan for settling the claims of creditors, the administrator shall submit an application to court for the termination of the insolvency proceedings of a legal person, appending the notification regarding the implementation of the plan for settling the claims of creditors.

(2) If objections from creditors are received within 15 days after sending of the notification regarding the implementation of the plan for settling the claims of creditors, the administrator shall:

1) rectify the deficiencies in the implementation of the plan for settling the claims of creditors within five days, if the objections are taken into account, and submit an application to court for termination of the insolvency proceedings of a legal person, appending thereto an updated notification regarding the implementation of the plan for settling the claims of creditors;

2) if the objections are not taken into account, submit an application to court for the termination of the insolvency proceedings of a legal person, appending thereto a notification regarding the implementation of the plan for settling the claims of creditors and inform the court of the objections received.

(3) The application referred to in Paragraphs one and two of this Section shall be submitted to court within 10 days after expiry of the deadline specified in Paragraphs one and two of this Section.

(4) If the administrator has included a proposal to terminate the insolvency proceedings of a legal person in the report on the non-existence of the debtor's property, and no objections are received from creditors, the administrator shall submit to court an application regarding termination of the insolvency proceedings of a legal person after expiry of the deadline specified in Section 112, Paragraph four of this Law.

Section 120. Effects of the Termination of Insolvency Proceedings of a Legal Person

(1) If the insolvency proceedings of a legal person are terminated concurrently with the court adjudication for the implementation of the debtor's legal protection proceedings, the powers of the administrator as an administrative body in the respective insolvency proceedings of a legal person shall expire and the debtor's rights to manage his or her property, as well as the activity of the debtor's administrative body, shall be restored.

(2) If the insolvency proceedings of a legal person are terminated in connection with the completion of the debtor's insolvency proceedings of a legal person, the administrator shall destroy the debtor's stamps and unused debtor's forms within one day after receipt of the court adjudication and draw up a statement regarding the destruction of the stamp and debtor's forms, and destroy the unused strict accountability receipt forms in accordance with the procedures laid down in laws and regulations.

(3) [25 September 2014].

(4) Within five days after receipt of the court decision to complete the proceedings, the administrator shall submit to the Register of Enterprises an application requesting to delete the debtor from the relevant register, together with a statement from the State Archives that the debtor's documents have been handed over for storage.

(5) If the legal proceedings of a legal person are terminated in connection with the completion of the debtor's legal proceedings of a legal person, the administrator's powers shall be terminated upon exclusion of the debtor from the relevant public register.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Chapter XXII
Features of Insolvency Proceedings of Individual Merchants and Partnerships

Section 121. Rights of the Creditors whose Claims do not Arise from the Debtor's Commercial Activities

(1) Insolvency proceedings shall be implemented for an individual merchant in conformity with the provisions of insolvency proceedings of a legal person, unless it is laid down otherwise in this Chapter.

(2) If the insolvency proceedings of a legal person are proclaimed for an individual merchant, the persons whose right to claim against the individual merchant have arisen apart from the commercial activities performed by the individual merchant also have the right of the creditors specified in this Chapter.

(3) If the insolvency proceedings of a legal person are proclaimed for a partnership, the complementary creditors of the partnership also have the creditor's rights specified in this Chapter.

(4) If the creditors referred to in Paragraphs one and two of this Section do not file their claims in conformity with the requirements of Section 73 of this Law, the provisions of Section 122 of this Law shall not apply thereto.

Section 122. Limitation Period of the Right to Claim

(1) After completion of the insolvency proceedings of an individual merchant or partnership in accordance with the procedures laid down in Chapter XXI of this Law, the non-covered creditor's right to claim shall have the limitation period specified in the Commercial Law.

(2) The right of creditors to claim referred to in Section 121, Paragraphs two and three of this Law shall also have the limitation period referred to in Paragraph one of this Section, if these creditors have submitted their claims to the insolvency proceedings of an individual merchant or partnership.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 123. Right to Use the Insolvency Proceedings of a Natural Person

(1) A natural person whose insolvency proceedings of a legal person have been terminated as for an individual merchant, has the right to address the court with an application for the insolvency proceedings of a natural person.

(2) The right referred to Paragraph one of this Section shall be enjoyed also by a natural person who has been a general partner in a partnership in respect of which the insolvency proceedings of a legal person have been terminated, as well as by a natural person who has been a founding member or a shareholder in an agricultural holding or a fishery in respect of which the insolvency proceedings of a legal person have been terminated.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Chapter XXIII
Features of the Insolvency Proceedings of the Producer of Agricultural Products

Section 124. Initiation of Insolvency Proceedings and Sale of the Property of a Producer of Agricultural Products

(1) The insolvency proceedings of the producer of agricultural products shall be implemented in accordance with the provisions of the insolvency proceedings of a legal person, unless it is laid down otherwise in this Chapter.

(2) In the insolvency proceedings a producer of agricultural products shall be understood to be the subject of the insolvency proceedings of a legal person from whose annual income more than 50 per cent on the day of the proclamation of the insolvency proceedings of a legal person is formed by revenue from the production and processing of agricultural products.

(3) When deciding on the sale of the property of a producer of agricultural products, the seasonal nature of agricultural products and dependence on nature and climatic conditions, as well as the opportunity for settling the claims of creditors from income which the producer of agricultural products may acquire at the end of the respective period of agricultural activities, shall be taken into account.

(4) In order to obtain income from manufactured or processed agricultural products, the sale of the property of a producer of agricultural products shall be commenced not before the end of the respective period of agricultural activities, observing the period necessary in order to sell the manufactured or processed agricultural products. This time period shall not exceed one year. This may be extended by six months by consent of the creditors' meeting.

Section 125. Sale of the Property of a Producer of Agricultural Products

(1) When selling the property of a producer of agricultural products, the property as a whole shall be offered for sale in the first place.

(2) A person who is engaged in the production or processing of agricultural products and whose property is a plot of land bordering the plot of land belonging to the debtor, shall have pre-emptive rights to purchase the property of the producer of agricultural products as a whole, for its evaluation price.

(3) If several persons who comply with the provisions of Paragraph two of this Section wish to acquire the item for sale as a whole, an auction by ascending step shall be organised between them.

(4) If no persons complying with the provisions of Paragraph two of this Section apply to purchase the item for sale as a whole within one month from the day of the offer being expressed, the item shall be sold as a whole in accordance with the general procedures laid down in this Law.

Section 126. Provisions for the Sale of the Property of a Producer of Agricultural Products

(1) If the property of a producer of agricultural products is not sold as a whole in accordance with the procedures provided for in Section 125 of this Law, the property of this producer of agricultural products may be sold in accordance with the general procedures provided for in this Law.

(2) When selling the immovable property owned by a producer of agricultural products, which is used in the production or processing of agricultural products, a producer of agricultural products from the administrative territory of the site of the immovable property has the pre-emptive rights to purchase this property for the evaluation price specified by a certified immovable property evaluator.

(3) If several persons who comply with the provisions of Paragraph two of this Section wish to acquire the immovable property referred to in Paragraph two of this Section, an auction by ascending step shall be organised between them.

Division D
Insolvency Proceedings of a Natural Person

Chapter XXIV
General Provisions of Insolvency Proceedings of a Natural Person

Section 127. Subjects of Insolvency Proceedings of a Natural Person

(1) A subject of insolvency proceedings of a natural person may be any natural person who has been a taxpayer in the Republic of Latvia in the previous six months and who is in financial difficulties (hereinafter in this Chapter - debtor).

(2) The debtor's guardian or trustee in the insolvency proceedings of a natural person shall implement the debtor's rights and duties in accordance with the requirements of the Civil Law.

(3) Insolvency proceedings of a natural person shall not be applicable to individual merchants.

Section 128. Basic Conditions of Insolvency Proceedings of a Natural Person

(1) The provisions of the insolvency proceedings of a legal person shall be applied to the insolvency proceedings of a natural person, in conformity with the provisions of this Chapter.

(2) The debtor has the rights and duties of a debtor's representative specified in this Law.

(3) Insolvency proceedings of a natural person comprise the bankruptcy procedure and the procedure of extinguishing obligations in succession.

(4) Within the scope of the bankruptcy procedure all the debtor's property shall be sold off, and the funds acquired from the selling shall be transferred for settling the claims of creditors, except the property specified in Annex 1 to the Civil Procedure Law and the amounts referred to in Section 596.

(5) Within the scope of the procedure of extinguishing obligations, the debtor's income shall be shifted for settling the claims of creditors and after expiry of the time period for the procedure of extinguishing obligations, the obligations not covered within the scope of this procedure shall be extinguished.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 129. Features and Prerequisites of Insolvency Proceedings of a Natural Person

(1) Insolvency proceedings of a natural person may be applied to a debtor if any of the following features of insolvency proceedings of a natural person exist:

1) this person does not have the possibility of settling debt obligations for which the due date has set it, and the debt obligations exceed 5 000 euro in total;

2) in connection with provable circumstances, it will not be possible for this person to settle debt obligations which will be due within a year and the debt obligations exceed 10,000 euro in total.

(2) The pre-condition for submitting an application for insolvency proceedings of a natural person is the payment of a deposit in the amount of two minimum monthly salaries into an account specially created by the Insolvency Administration.

(3) The deposit in the insolvency proceedings of a natural person shall be used for paying the remuneration to the administrator laid down in Section 171, Paragraph one of this Law.

(4) If the insolvency proceedings of a natural person are not proclaimed, the deposit shall be reimbursed to the submitter of the application for the insolvency proceedings of a natural person.

(5) The Cabinet shall determine the procedures by which the deposit for insolvency proceedings of a natural person shall be paid into the account specially created by the Insolvency Administration and disbursed to the administrator or to the submitter of the application for the insolvency proceedings of a natural person.

[12 September 2013; 25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 130. Restrictions on the Application of Insolvency Proceedings of a Natural Person

Insolvency proceedings of a natural person shall not be applicable or terminable for a person:

1) who in the last three years prior to the proclamation of the insolvency proceedings of a natural person has deliberately provided false information to his or her creditors;

2) who has spent the granted loan for purposes other than stated in the agreement and an adjudication of the competent authority in criminal proceedings has entered into effect;

3) who has had the insolvency proceedings of a natural person proclaimed, in the scope of which the obligations have been extinguished, within the last 10 years prior to the proclamation of the insolvency proceedings of a natural person;

4) within the last five years prior to the proclamation of the insolvency proceedings of a natural person or during the insolvency proceedings of a natural person, an adjudication of the competent authority in a criminal matter has entered into effect, with which it has been established that the debtor has avoided tax payment.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 131. Interested Persons in Insolvency Proceedings of a Natural Person

(1) The following persons shall be considered as interested persons in relation to a debtor:

1) the debtor's spouse;

2) a person who is in relation or affinity to the debtor to the second degree;

3) the debtor's guardian or trustee;

4) a commercial company in which the debtor has a decisive influence within the meaning of the Group of Companies Law.

(2) As an interested person in relation to a debtor shall also be considered such person as has been an interested person in accordance with the provisions of Paragraph one of this Section, within the last five years prior to the initiation of the matter of insolvency proceedings of a natural person.

Section 132. Publicity of the Matter of Insolvency Proceedings of a Natural Person

(1) The responsible authority shall enter the following information in the Insolvency Register regarding a matter of insolvency proceedings of a natural person:

1) the debtor's given name, surname and the personal identity number;

2) the date when the insolvency proceedings of the natural person were proclaimed and the name of the court;

3) the given name, surname and certificate number of the administrator appointed to the matter;

4) the given name, surname, certificate number and term of validity of the authorisation of the authorised administrator;

5) the given name, surname, address of the place of practice and telephone number of the liquidator involved in the insolvency proceedings specified in Article 3(1) of Council Regulation No 1346/2000;

6) the type of insolvency proceedings in accordance with Article 3(1) or 3(2) of Council Regulation No 1346/2000;

7) the type of insolvency proceedings in accordance with Section 128, Paragraph three of this Law;

8) the date of the termination of the insolvency proceedings of a natural person, the name of the court, and the justification;

9) the time period for the application by creditors;

10) the address, date and time of the creditors' meeting;

11) the date of the making of the entry.

(2) The information referred to in Paragraph one of this Section may be published also in other registers, information systems, or databases.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Chapter XXV
Commencement of Insolvency Proceedings of a Natural Person

Section 133. Persons who may Submit an Application for Insolvency Proceedings of a Natural Person

(1) An application for insolvency proceedings of a natural person may be submitted in the cases provided for in this Law by:

1) the debtor if any of the features referred to in Section 129, Paragraph one of this Law are present;

2) the person indicated in Article 29(a) of Council Regulation No 1346/2000;

3) the debtor jointly with the interested persons referred to in Section 131, Paragraph one, Clauses 1 and 2 of this Law, if any of the features referred to in Section 129, Paragraph one of this Law exists for each of them.

(2) An application for insolvency proceedings of a natural person shall be submitted to court in accordance with the procedures laid down in the Civil Procedure Law.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 134. Effects of the Proclamation of Insolvency Proceedings of a Natural Person

(1) After proclamation of the insolvency proceedings of a natural person, the bankruptcy procedure shall be commenced.

(2) After proclamation of the insolvency proceedings of a natural person:

1) the execution proceedings in the matters on the recovery of the amounts adjudged but not recovered shall be suspended, and in matters regarding the honouring of the debtor's obligations through court;

2) the debtor shall lose the right to act with all his or her property, as well as of the property of third persons which is possessed or held by the debtor (except property to which recovery may not be addressed), and such rights shall be acquired by the administrator;

3) the increase in interest for the use of the loan (credit), the lawful increase in interest, the increase in the penalty (including the penalty increment expressed in per cent), the increase in the late payment charges ceases. The calculation of late payment charges which are specified as interest payments for missing the deadline for the payment of taxes, duties and penalties, shall be suspended for tax claims;

4) the debtor shall lose the rights without the administrator's consent to conclude transactions, the amount of which exceeds one minimum monthly wage, more often than once a month;

5) the debtor shall lose the right to undertake new debt obligations without the administrator's consent.

(3) The debtor's obligations whose term for execution has taken effect after the day of the proclamation of the insolvency proceedings of a natural person, shall be considered to be those whose term for execution has taken effect on the day of the proclamation of the insolvency proceedings.

(4) A court decision proclaiming the insolvency proceedings of a natural person shall be the grounds for a stay of proceedings against the debtor.

(5) The judgement of the court announcing the insolvency proceedings of a natural person shall be the grounds for revoking the securing of claims in accordance with the procedures laid down in the Civil Procedure Law.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 135. Appointment of an Administrator to Insolvency Proceedings of a Natural Person

Section 59, Paragraphs one and four of this Law shall be applied to the appointment of an administrator to insolvency proceedings of a natural person.

Section 136. Restrictions on the Debtor's and Creditor's Actions in the Insolvency Proceedings of a Natural Person

(1) After proclamation of the insolvency proceedings of a natural person a debtor is prohibited from performing activities which cause losses to the creditors.

(2) Upon proclamation of the insolvency proceedings of a natural person, a creditor is prohibited from performing individual activities by which losses are inflicted upon other creditors.

(3) Financial rights which have arisen for the creditor or third person as a result of the activities referred to in Paragraph one or two of this Section shall be recognised as invalid.

Chapter XXVI
Course of the Bankruptcy Procedure

Section 137. Administrator's Activities During the Bankruptcy Procedure

After proclamation of the insolvency proceedings of a natural person and the commencement of the bankruptcy procedure, the administrator shall:

1) open in his or her name an account with a credit institution for securing the creditors' claims within the scope of the bankruptcy procedure, if funds are transferred to the administrator in accordance with Section 139, Clause 2 of this Law, or the selling of property is intended as part of the insolvency proceedings of the debtor;

2) where necessary, submit an application to the relevant public registers for the entry or deletion of a notation of insolvency, appending a copy of the court decision to appoint an administrator;

3) study the debtor's property and obligations;

4) request and receive from the debtor, as well as from State authorities and credit institutions, information necessary in order to study the debtor's property and obligations, as well as other information within the scope of the insolvency proceedings of a natural person;

5) accept, register and check creditors' claims;

6) where necessary, take the debtor's property under his or her administration, except property to which recovery may not be addressed, and the property referred to in Section 140, Clause 2 of this Law, as well as the property possessed or held by the debtor which is in the ownership of third persons;

7) provide creditors with a report of his or her activities and recommendations for acquiring funds for covering the costs of the insolvency proceedings of a natural person and for settling the claims of creditors;

8) prepare the plan for the sale of the debtor's property;

9) recover the debts of debtors and perform legal activities for the recovery of other property of the debtor;

10) organise the sale of the debtor's property;

11) [25 September 2014];

12) represent the debtor in matters connected to the insolvency proceedings of a natural person;

13) upon request of the debtor and upon mutual agreement, provide advice for drafting a plan for extinguishing obligations.

[14 October 2010; 25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 138. Administrator's Rights During the Bankruptcy Procedure

Within the scope of the bankruptcy procedure the administrator, in addition to the general administrator's rights specified in this Law, has the following rights:

1) to alienate the property of the debtor in cases specified in this Law;

2) to cover the expenses of the insolvency proceedings of a natural person (Section 172);

3) to invite specialists in order to ensure the effective and lawful insolvency proceedings of a natural person, and to cover the costs related thereto by consent of the creditors, from the property of the debtor or the sources of financing the insolvency proceedings of other natural persons.

Section 139. Debtor's Duties During the Bankruptcy Procedure

A debtor has a duty to:

1) to acquire income according to his or her possibilities, in order to satisfy the creditors' claims as fully as possible;

2) not later than within 10 days after proclamation of the insolvency proceedings of a natural person, to transfer his or her funds to the administrator;

3) keep and manage his or her property as an honest and careful proprietor;

4) prepare a plan for extinguishing obligations;

5) supply the administrator with the information necessary for the course of the insolvency proceedings;

6) cover the costs of the insolvency proceedings of a natural person;

7) upon request of the administrator, transfer the property under his or her administration, except property to which recovery may not be addressed, and the property referred to in Section 140, Clause 2 of this Law, as well as the property possessed or held by the debtor which is in the ownership of third persons.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 140. Debtor's Rights During the Bankruptcy Procedure

The debtor has the following rights:

1) to receive at least two-thirds of his or her income in order to cover the costs for the maintenance of a natural person;

2) to keep property which is essential for the acquisition of income.

Section 141. Creditors' Claims and the Creditors' Meeting

(1) The creditors' claims against the debtor shall be submitted to the administrator in accordance with the procedures laid down in Chapter XIII of this Law. (2) If a creditor has missed the term for submitting the claim referred to in Section 73, Paragraph one of this Law, it may submit the claim against the debtor within a time period not exceeding six months from the day when the entry has been made in the Insolvency Register regarding the proclamation of the insolvency proceedings of the debtor, however not later than until the day when the final list of the bankruptcy procedure expenses has been drawn up in accordance with the procedures laid down in this Law.

(11) After the term for submitting creditors' claims referred to in Section 73, Paragraph two of this Law, a limitation period sets in, thereby the creditor shall lose the status of a creditor and its right of claim against the debtor both within the scope of insolvency proceedings of a natural personal, as well as after the debtor has been released from obligations in the case referred to in Section 164, Paragraph one of this Law. The obligations referred to in Section 164, Paragraph four, Clauses 1, 2, and 4 of this Law shall have no limitation period.

(2) The administrator shall draw up the debtor's claims of creditors in accordance with the procedures laid down in Chapter XIII of this Law.

(21) The administrator shall,without delay, send a notification regarding the proclamation of insolvency proceedings electronically to all known creditors of the debtor whose right to claim is secured by a commercial pledge, or mortgage registered in the Land Register or Ship Register. If the information accessible to the general public does not contain any information regarding the debtor's creditors or e-mail addresses of the creditors, the administrator is entitled not to send the notification to the abovementioned creditors.

(3) Creditors' meetings shall take place in accordance with the provisions of Chapter XV of this Law.

(4) Any creditor has the right to request the convening of a creditors' meeting.

[25 September 2014; 19 February 2015 / See Paragraph 34 of Transitional Provisions]

Section 142. Right of Creditors to Notify of the Restrictions on Applying Insolvency Proceedings of a Natural Person

(1) Within two months from the day when the entry has been made in the Insolvency Register regarding the proclamation of the insolvency proceedings of a debtor, creditors have the right to submit to the administrator a proposal to terminate the insolvency proceedings of a natural person, if information is at the disposal of the creditors regarding the restrictions referred to in Sections 130 and 153 of this Law.

(2) The administrator's decision not to submit to court an application regarding termination of the bankruptcy proceedings after receipt of the creditors' notification referred to in this Paragraph concerning existence of the restrictions referred to in Section 130 of this Law may be appealed to the court where the matter of the insolvency proceedings of a natural person has been initiated.

[14 October 2010; 25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 143. Debtor's Property

(1) The provisions contained in Chapter XVI of this Law shall be applicable to the debtor's property and the procedures for the management thereof, unless it is laid down otherwise in this Law.

(2) The debtor's property is also the debtor's income which has been acquired during the insolvency proceedings of a natural person.

(3) The administrator shall be responsible for keeping the debtor's property, who may transfer this property to the debtor for keeping with or without the right to use it.

Section 144. Appeal of Transactions During the Bankruptcy Procedure

Transactions concluded by the debtor may be appealed in accordance with the procedures laid down in Chapter XVII of this Law, if the restrictions for extinguishing obligations specified in Section 153 of this Law are established.

Section 145. Sale of the Debtor's Property during the Bankruptcy Procedure

(1) The administrator shall ensure the sale of the debtor's property, in conformity with the plan for the sale of the property.

(2) The administrator shall commence the sale of property not sooner than two months after proclamation of the insolvency proceedings of a natural person.

Section 146. Plan for the Sale of the Debtor's Property in Insolvency Proceedings of a Natural Person

(1) For the sale of the debtor's property the administrator shall draw up a plan for the sale of the debtor's property (Section 113), taking into account the provisions of Sections 111 and 148 of this Law.

(2) If the secured creditor and debtor have entered into an agreement to keep the dwelling which is encumbered by a pledge, and this agreement is comparable with the interests of the other creditors, this shall be indicated in the plan for the sale of the debtor's property.

(3) The administrator shall send the plan for the sale of the debtor's property to the creditors in accordance with the procedures laid down in this Law not later than two weeks after expiry of the term for the creditor's application.

(4) The plan for the sale of the debtor's property shall be implemented in conformity with the provisions of Chapter XX of this Law, insofar as it is not laid down otherwise in this Law.

Section 147. Procedures for Covering the Costs of Insolvency Proceedings of a Natural Person and Settling of the Creditors' Claims

(1) After implementation of the plan for the sale of the debtor's property, the administrator shall draw up and send all creditors a list of the final costs of the bankruptcy procedure, determining the procedures for settling the creditors' claims, as well as a report on the funds received and spent.

(2) The payments for the means of support shall be settled in full from the debtor's property in the first place, including payments to the Maintenance Guarantee Fund, as well as the costs of the insolvency proceedings of a natural person.

(3) Funds which have been acquired by selling the debtor's property serving as security shall be shifted for settling the secured creditor's claim.

(4) The claims of non-secured creditors shall be amalgamated into one group without priority. After making of the payments referred to in Paragraphs two and three of this Section, the claims of non-secured creditors shall be settled in proportion to the amount of the basic debt of each creditor. From the debtor's funds remaining after settling the claims of non-secured creditors in the amount of the basic debt, the ancillary claims of non-secured creditors shall be settled (in proportion to the amount due to each creditor).

(5) The debtor's funds remaining after settling the costs of the insolvency proceedings referred to in this Section and the settling of the creditor's claims, shall be transferred to the debtor.

(6) [19 February 2015].

[25 September 2014; 19 February 2015 / See Paragraph 34 of Transitional Provisions]

Section 148. Agreement on Keeping the Debtor's Dwelling in the Debtor's Ownership

(1) A secured creditor and debtor may enter into an agreement that the dwelling owned by the debtor which has been pledged in favour of the secured creditor shall not be sold during the insolvency proceedings of a natural person.

(2) In the case referred to in Paragraph one of this Section, a payment shall be made to the secured creditor during the insolvency proceedings of a natural person which shall not exceed the amount which would be payable to the debtor, when hiring the debtor's property serving as security during the insolvency proceedings of a natural person.

(3) The administrator shall make the payments referred to in Paragraph two of this Section from the debtor's property in conformity with the timetable co-ordinated by the debtor and the secured creditor. The creditor's claim shall be reduced by the payments made to the secured creditor.

(4) If the procedure for extinguishing obligations is applied to the debtor after completion of the bankruptcy procedure, the agreement referred to in this Section shall remain in effect and the secured creditor, during the procedure for extinguishing obligations, shall receive payments which do not exceed those referred to in Paragraph two of this Section.

(5) The secured creditor is entitled to withdraw from the agreement entered into and request the sale of the debtor's property serving as security, if the payments provided for in the conditions of the agreement are not made.

(6) If in a dwelling with a cadastral value not exceeding 142,287 euro debtor's dependants are living with him or her and the dwelling is the declared place of residence of the debtor's dependants who are living together with him or her, there is a possibility to postpone the selling of this dwelling in an auction for a time period of up to one year from the proclamation date of the insolvency proceedings of a natural person, to enable the debtor to find another dwelling. This possibility should be provided for in the plan for selling the property of the natural person.

(7) Within the meaning of this Law, a dwelling is a property in the ownership of the debtor which he or she has declared as the place of residence in the six months preceding the day when an application for insolvency proceedings has been submitted to the court.

[12 September 2013; 25 September 2014 / See Paragraphs 18 and 34 of Transitional Provisions]

Section 149. Completion of a Bankruptcy Procedure

(1) The administrator shall send the report on the completion of the bankruptcy procedure to the creditors and debtor not later than 15 days after completion of the sale and recovery of the debtor's property (Section 144). The administrator shall also send the report on the completion of the bankruptcy procedure if the dwelling remains in the ownership of the debtor, in respect of which the debtor has reached an agreement with the secured debtor.

(2) The administrator shall indicate the amount of the settled claims of creditors and non-settled claims of creditors in the report regarding completion of the bankruptcy procedure.

(3) When sending the creditors a report on the completion of the bankruptcy procedure, a plan for extinguishing obligations which has been drawn up in compliance with Sections 154 and 155 of this Law, shall be appended thereto.

(4) Within 15 days after receipt of the administrator's report, the creditors and debtor have the right to express objections and recommendations regarding completion of the bankruptcy procedure thereto.

(5) The administrator, having evaluated the proposals and objections submitted, shall take the appropriate measures within the scope of the bankruptcy procedure. If the administrator has not taken into account the proposals and objections expressed, he or she shall provide a reasoned response to the submitter of the relevant objection or proposal and notify the court accordingly, submitting an application for approval of the completion of the bankruptcy procedure.

(6) Not earlier than three weeks and not later than one month after the report on the completion of the bankruptcy procedure has been sent to the debtor and creditors, the administrator shall submit to court an application regarding approval of the completion of the bankruptcy procedure.

(7) The administrator, when submitting to court an application regarding approval of the completion of the bankruptcy procedure shall concurrently request termination of the insolvency proceedings of a natural person, if restrictions on the application of the procedure for extinguishing obligations are determined for the debtor (Section 153).

[14 October 2010]

Section 150. Termination of a Bankruptcy Procedure

(1) The court shall terminate a bankruptcy procedure concurrently terminating the insolvency proceedings of a natural person, if restrictions on the application of the insolvency proceedings of a natural person are determined (Section 130).

(2) The administrator shall submit an application regarding the termination of a bankruptcy procedure in the case referred to in Paragraph one of this Section within three months after proclamation of the insolvency proceedings of a natural person.

(3) The court shall terminate a bankruptcy procedure concurrently terminating the insolvency proceedings of a natural person, if the creditors' claims have not been submitted in accordance with the procedures laid down in Section 141, Paragraph one of this Law.

(4) In the case referred to in Paragraph three of this Section, the debtor shall submit the application on termination of the bankruptcy procedure within one month after expiry of the deadline for submitting creditors' claims referred to in Section 141, Paragraph one of this Law.

(5) [19 February 2015].

(6) [19 February 2015].

(7) A court shall terminate the bankruptcy procedure concurrently with terminating the insolvency proceedings of a natural person if the debtor has died.

(8) In the case referred to in Paragraph seven of this Section, the application on termination of the bankruptcy procedure shall be submitted by the administrator.

[25 September 2014; 19 February 2015 / See Paragraph 34 of Transitional Provisions]

Section 151. Effects of the Completion or Termination of a Bankruptcy Procedure, if the Insolvency Proceedings of a Natural Person are Terminated Concurrently

(1) If the insolvency proceedings of a natural person are terminated concurrently with the completion or termination of a bankruptcy procedure, the administrator's rights provided for in this Law and the restrictions on the debtor's actions with his or her property provided for in this Law shall be terminated.

(2) If the insolvency proceedings of a natural person are terminated concurrently with the completion or termination of a bankruptcy procedure, the creditor's right to request the honouring of the debtor's obligations in the amount for which the debtor has not honoured his or her obligations in the insolvency proceedings of a natural person shall be restored, and the matters regarding the recovery of the amounts adjudged but not recovered shall be restored, and the matters regarding the honouring of the debtor's obligations through the court.

Chapter XXVII
Course of the Procedure of Extinguishing Obligations

Section 152. Subjects of the Procedure of Extinguishing Obligations

(1) A subject of the procedure of extinguishing obligations may be a debtor whose bankruptcy procedure has been completed.

(2) The debtor's guardian or trustee shall implement the debtor's rights and duties in accordance with the provisions of the Civil Law.

Section 153. Restrictions on the Application of the Procedure of Extinguishing Obligations

The procedure for extinguishing obligations shall not be applied or shall be suspended in the following cases:

1) the debtor has concluded transactions within the last three years prior to the proclamation of the insolvency proceedings of a natural person or during the insolvency proceedings, as a result of which he or she has become insolvent or has caused losses to creditors, moreover, he or she knew or should have known that concluding of such transactions may lead to insolvency or to losses being caused to the creditors;

2) the debtor has deliberately provided false information regarding his or her financial situation and hidden his or her actual income;

3) the debtor fails to fulfil the obligations specified by the bankruptcy procedure or extinguishing of obligations procedure, thus notably hindering an efficient course of the insolvency proceedings.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 154. Plan for Extinguishing Obligations of a Natural Person

(1) The debtor shall draw up a plan for extinguishing the obligations of a natural person during the bankruptcy procedure.

(2) The following shall be indicated in the plan for extinguishing the obligations of a natural person:

1) creditors who have submitted their claims in accordance with the procedures laid down in Section 141, Paragraph one of this Law and whose claims have not been satisfied in the scope of bankruptcy procedure, as well as the amount of such claims;

2) the term of validity of the plan for extinguishing obligations;

3) the estimated amount of the debtor's monthly income;

4) the estimated amount of the debtor's monthly income, in order to cover the debtor's maintenance costs;

5) the amount of the debtor's income necessary for the hire of his or her dwelling or interest payments for use to a secured creditor, if the debtor has agreed with him or her on keeping the only dwelling;

6) the estimated amount of the debtor's monthly income, which shall be shifted for the implementation of the plan for extinguishing obligations;

7) amounts due to the creditors who have filed their claims in accordance with the procedures laid down in Section 141, Paragraph one of this Law and the settlement schedule in the extinguishing of obligations procedure.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 155. Time Period for the Plan for Extinguishing Obligations of a Natural Person

(1) The time period for implementation of the plan for extinguishing the obligations of a natural person shall be determined, taking into account the estimated income in the procedure for extinguishing the obligations.

(2) If according to the debtor's evaluation in the procedure for extinguishing obligations his or her income will be sufficient to cover at least 50 per cent of the total obligations remaining after completion of the bankruptcy procedure, the time period for the plan for extinguishing the obligations of a natural person shall be six months from the day of the proclamation of the procedure for extinguishing obligations.

(3) If the debtor, during the procedure for extinguishing obligations, is unable for reasons out of his or her control to cover the amount of the obligations specified in Paragraph two of this Section, the time period for the plan for extinguishing the obligations shall be determined as follows:

1) one year from the day of the proclamation of the procedure for extinguishing obligations, if according to the debtor's evaluation his or her income during the procedure for extinguishing the obligations will be sufficient to cover at least 35 per cent of the total obligations remaining after completion of the bankruptcy procedure;

2) one year and six months from the day of the proclamation of the procedure for extinguishing obligations, if according to the debtor's evaluation his or her income during the procedure for extinguishing the obligations will be sufficient to cover at least 20 per cent of the total obligations remaining after completion of the bankruptcy procedure.

(4) If the debtor, during the procedure for extinguishing obligations, is unable to settle the amount of the obligations specified in Paragraphs two and three of this Section for reasons out of his or her control, it shall be provided for in the plan for extinguishing the obligations of a natural person that funds in the amount of one-third of the debtor's income, however not less than in the amount of one-third of one minimum monthly wage, will be shifted for settling the claims of creditors. In the plan for extinguishing the obligations of a natural person, the following term shall be set:

1) one year from the day when the procedure for extinguishing obligations is proclaimed, if the debtor's total amount of obligations after completion of the bankruptcy procedure do not exceed 30,000 euro;

2) two years from the day when the procedure for extinguishing obligations is proclaimed, if the debtor's total amount of obligations after completion of the bankruptcy procedure is from 30,001 euro to 150,000 euro;

3) three years from the day when the procedure for extinguishing obligations is proclaimed, if the debtor's total amount of obligations after completion of the bankruptcy procedure exceed 150,000 euro.

(5) Only the basic debt shall be considered to be the debtor's obligations, not including penalties, fines or late payment interest. The settled unpaid interest for use shall be added to the debtor's obligations until the proclamation of insolvency, but not more than in the amount of six per cent per year.

[25 September 2014; 19 February 2015 / See Paragraphs 17, 18 and 34 of Transitional Provisions]

Section 156. Right of Creditors to Provide an Opinion and Proposals Regarding the Plan for Extinguishing the Obligations of a Natural Person

(1) When drawing up the plan for extinguishing the obligations of a natural person, the debtor shall co-operate with the creditors, hearing their objections and proposals.

(2) The creditors have the right within 15 days after receipt of the plan for extinguishing the obligations of a natural person to express their objections and proposals to the debtor in respect of this plan.

(3) The debtor shall evaluate the objections and proposals expressed and, if necessary, update the plan for extinguishing the obligations of a natural person.

(4) If a debtor has not taken into account the objections and proposals expressed, he or she shall provide a reasoned response to the submitter of the relevant objection or proposal and notify the court accordingly.

[14 October 2010]

Section 157. Approval of the Plan for Extinguishing Obligations of a Natural Person in Court

(1) The debtor shall submit the plan for extinguishing the obligations of a natural person for approval in court within the time period specified in Section 149, Paragraph six of this Law.

(2) After the court approval of this plan, the debtor shall send it to all the creditors included in the plan, as well as to the authority responsible for organising the Insolvency Register.

Section 158. Effects of the Proclamation of the Procedure for Extinguishing Obligations

(1) The court decision on the completion of the bankruptcy procedure and the approval of the plan for extinguishing the obligations of a natural person is the basis for the proclamation of the procedure for extinguishing obligations.

(2) Concurrently with the court decision on the proclamation of the procedure for extinguishing obligations:

1) the debtor's right to act with all the property thereof shall be restored, as well as with the property of third persons which is possessed or held by the debtor;

2) the prohibition for the debtor to conclude such transactions in respect of his or her property whose amount exceeds two minimum monthly wages without the consent of the administrator shall be retained.

Section 159. Administrator's Activities After Proclamation of the Procedure for Extinguishing Obligations

After proclamation of the procedure for extinguishing obligations, in accordance with the procedures laid down in this Law, the administrator:

1) upon request of the creditor, shall supervise the implementation of the plan for extinguishing the obligations of a natural person;

2) upon request of the creditor, shall supervise the debtor's actions in the fulfilment of the duties specified in this Chapter;

3) upon request of the debtor, shall provide him or her with legal aid in connection with the insolvency proceedings of a natural person (if necessary, shall also draw up amendments to the plan for extinguishing the obligations of a natural person).

Section 160. Debtor's Obligations in the Procedure for Extinguishing Obligations

A debtor has the following obligations:

1) to implement the plan for extinguishing the obligations of a natural person;

2) to acquire income according to his or her possibilities, in order to satisfy the creditors' claims as fully as possible;

3) upon request of the administrator, to provide information for the implementation of the plan for extinguishing the obligations of a natural person;

4) to cover the costs of insolvency proceedings of a natural person.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 161. Debtor's Rights in the Procedure for Extinguishing Obligations

The debtor has the following rights:

1) to keep at least two-thirds of his or her income in order to cover his or her maintenance costs;

2) to keep property which is essential for the acquisition of income;

3) to request legal aid from the administrator in connection with the insolvency proceedings of a natural person (if necessary, also to draw up amendments to the plan for extinguishing the obligations of a natural person).

Section 162. Amendments to the Plan for Extinguishing Obligations of a Natural Person

(1) If the debtor's income changes during the implementation of the plan for extinguishing obligations of a natural person, he or she has the duty to prepare amendments to the plan for extinguishing obligations of a natural person, changing the deadline for the plan and the amount of the obligations to be covered within the scope thereof, according to the method provided for in Section 155 of this Law.

(2) The debtor shall extend the deadline for the implementation of the plan for extinguishing obligations of a natural person and reduce the amount of the obligations to be covered, if the debtor's income reduces in such amount that he or she will evidently be unable to cover the amount indicated in the plan for extinguishing the obligations of a natural person.

(3) The debtor shall reduce the deadline for the implementation of the plan for extinguishing the obligations of a natural person and increase the amount of the obligations to be covered, if the debtor's income increases by such amount that he or she will evidently be able to cover the greater part of his or her obligations.

(4) If the debtor has increased his or her income during the procedure of extinguishing obligations, by making amendments to the plan for extinguishing the obligations of a natural person, he or she is entitled to proportionately increase not only the part of the payment to be shifted towards extinguishing the obligations, but also the part of the property he or she is entitled to keep.

(5) Creditors shall be acquainted with the amendments to the plan for extinguishing the obligations of a natural person in accordance with the procedures laid down in Section 149 of this Law, and the court shall approve them in accordance with the procedures laid down in Section 157 of this Law.

(6) The debtor's payments to creditors provided for in the plan for extinguishing the obligations of a natural person may be reduced by half by the court decision once during the period of the procedure for extinguishing obligations, for a time period not exceeding one year, if he or she is unable to find paid work or has become incapable for work during the period of extinguishing obligations.

Section 163. Debtor Monitoring

If the creditors have information that the debtor is hiding his or her income or is not performing the activities specified in this Law, in order to cover as great a part as possible of his or her obligations, the creditors are entitled to request that the administrator performs an inspection of the debtor's activities within the scope of the procedure for extinguishing obligations.

Section 164. Debtor's Exemption from Obligations

(1) If a debtor has performed the activities specified in the plan for extinguishing obligations, at the end of the plan being in effect, the remaining obligations of this person indicated in the plan referred to shall be extinguished and execution proceedings for the recovery of the extinguished obligations shall be terminated.

(2) A debtor shall not be released from the remaining obligations indicated in the plan for extinguishing the obligations of a natural person, if he or she has not performed the activities specified in this plan.

(3) The decision to release the debtor from the remaining obligations which are indicated in the plan for extinguishing the obligations of a natural person, shall be taken by court, when completing the procedure for extinguishing obligations.

(4) After completion of the procedure for extinguishing obligations, the following shall not be extinguished:

1) claims for maintenance payments;

2) claims from unauthorised activities;

3) a secured claim if the debtor has kept the dwelling serving as security for this claim, insofar as it is not otherwise determined in the agreement referred to in Section 148 of this Law. Execution proceedings for the recovery of the obligations referred to shall be restored in the amount of the remaining debt;

4) claims for the sanctions provided for in the Latvian Administrative Violations Code and the Criminal Law, as well as indemnification for the damage.

(5) The extinguishing of obligations in respect of the agreement specified in Section 148 of this Law regarding keeping the debtor's dwelling in his or her ownership shall be determined in accordance with the abovementioned agreement.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 165. Procedures for Terminating the Procedure for Extinguishing Obligations

(1) The debtor shall submit to court an application regarding termination of the procedure for extinguishing obligations, if he or she:

1) has settled the obligations included in the plan for extinguishing obligations of a natural person to full extent;

2) has fulfilled the plan for extinguishing obligations of a natural person.

(2) The administrator shall submit to court an application regarding termination of the procedure for extinguishing obligations, if:

1) restrictions for applying the procedure for extinguishing obligations (Section 153) are determined;

2) [25 September 2014].

(3) The creditor shall submit to court an application regarding termination of the procedure for extinguishing obligations, if:

1) the debtor is not implementing the plan for extinguishing the obligations of a natural person; or

2) restrictions for applying the procedure for extinguishing obligations (Section 153) are determined.

(4) When terminating the procedure for extinguishing obligations, the court shall concurrently terminate the insolvency proceedings of a natural person.

(5) If the court, when terminating the procedure for extinguishing obligations, establishes that the debtor is exempt from debt obligations in accordance with Section 164 of this Law, the court shall release him or her from the obligations indicated in the plan for extinguishing the obligations of a natural person, concurrently with termination of the procedure.

(6) If the procedure for extinguishing obligations is terminated, without releasing the debtor from obligations, the claims of creditors shall be restored and calculated in full amount, but the suspended court proceedings and execution proceedings of the judgment shall be restored.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Division E
Costs of Legal Protection Proceedings and Insolvency Proceedings

Chapter XXVIII
Costs for Ensuring Lawful and Effective Course of Legal Protection Proceedings and Extrajudicial Legal Protection Proceedings

Section 166. Administrator's Remuneration in Legal Protection Proceedings and Extrajudicial Legal Protection Proceedings

(1) The administrator who has been appointed by court upon the debtor's proposal shall agree with the debtor in writing regarding the amount of remuneration provided for the performance of administrator's duties in the legal protection proceedings or extrajudicial legal protection proceedings and the procedure for the covering thereof.

(2) The administrator shall receive monthly remuneration for the performance of administrator's duties in legal protection proceedings or extrajudicial legal protection proceedings, in the amount of one minimum monthly wage, unless the agreement referred to in Paragraph one of this Section has been reached on another amount of remuneration and the procedures for the covering thereof.

(3) Remuneration for the performance of administrator's duties in legal protection proceedings or in extrajudicial legal protection proceedings shall be covered from the debtor's funds, and the procedures for the covering thereof shall be provided for in the plan of the legal protection proceedings.

(4) Value added tax shall be added to the remuneration for the performance of administrator's duties in legal protection proceedings or in extrajudicial legal protection proceedings, if the administrator is registered with the State Revenue Service Value Added Tax Taxable Persons Register.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 167. Expenses of Legal Protection Proceedings and Extrajudicial Legal Protection Proceedings

(1) The expenses of legal protection proceedings and extrajudicial legal protection proceedings shall be covered from the debtor's funds.

(2) The amount of the expenses for the legal protection proceedings and extrajudicial legal protection proceedings and the procedures for the covering thereof shall be provided for in the plan of the legal protection proceedings.

(3) The following shall be included in the expenses of legal protection proceedings:

1) the remuneration of the administrator;

2) the regular tax and duty payments;

3) the salaries of the debtor's employees;

4) the expenses necessary for the maintenance and upkeep of the property;

5) costs related to ensuring the debtor's economic activities.

Chapter XXIX
Costs for Ensuring the Lawful and Effective Course of Insolvency Proceedings of a Legal Person and the Sources of Financing These Costs

Section 168. Sources of Financing the Costs of Insolvency Proceedings of a Legal Person

(1) The costs of insolvency proceedings of a legal person shall be covered from the debtor's property.

(2) If it is impossible to cover the costs of insolvency proceedings of a legal person and the insolvency proceedings of a legal person are terminated in accordance with Section 119, Paragraph four of this Law, the costs of the insolvency proceedings of a legal person shall be covered from the deposit for the insolvency proceedings of a legal person indicated in Section 62 of this Law, which shall be paid to the administrator as the costs of the insolvency proceedings of a legal person, from which he or she shall cover the expenses and remuneration of the insolvency proceedings of a legal person. If the deposit for insolvency proceedings of a legal person has not been paid or has been paid partly (Section 62, Paragraph 7.1), the expenses of the insolvency proceedings of a legal person shall be covered from the State budget and State entrepreneurial risk fee funds that have been allotted to the Insolvency Administration for covering the costs of insolvency proceedings of a legal person on relevant occasions.

(3) If it is impossible to cover the costs of the insolvency proceedings of a legal person from the debtor's property, they may be financed from the funds of the debtor's representative, the administrator, creditor, creditor groups or other natural person or legal person and upon initiative thereof, by the abovementioned persons agreeing thereto in writing with the administrator, if such agreement conforms to the creditors' interests.

(4) If property is sold or recovered in the insolvency proceedings of a legal person, then the property granted to the persons referred to in Paragraph three of this Section for financing the costs of the insolvency proceedings of a legal person shall be comparable to the costs of the insolvency proceedings of a legal person and shall be repayable in accordance with the procedures indicated in Section 118, Paragraph one of this Law, repaying the property granted to the persons referred to in Paragraph three of this Section, in the first place.

(5) If property is recovered in the insolvency proceedings of a legal person which has been acquired from the persons referred to in Sections 166, 167, 168, and 169 of the Commercial Law, based on the obligation thereof to be responsible for the losses caused to the debtor, then, based on the claims raised by the creditor in favour of the debtor in accordance with Section 170 of the Commercial Law, the expenses of the creditor, who has raised the claim for the benefit of the debtor, which has arisen in connection with raising this claim shall be comparable to the costs of insolvency proceedings and be repayable in accordance with the procedures indicated in Section 118, Paragraph one of this Law, repaying the expenses incurred by him or her in connection with raising the claim, in the first place.

[14 October 2010; 25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 169. Remuneration of an Administrator in Insolvency Proceedings of a Legal Person

(1) The administrator shall receive remuneration from the debtor's property for performing the administrator's duties in the insolvency proceedings of a legal person, except the cases referred to in this Law.

(2) The remuneration of the administrator shall be specified in the following amount:

1) in the amount of two minimum monthly wages for the work from the day of appointment until drawing up of the plan for the sale of the debtor's property (Section 113) or the report on non-existence of the debtor's property (Section 112) and 10 per cent of funds from the recovered property (Section 93) which have been recovered until drawing up of the plan for the sale of the debtor's property or the report on non-existence of the debtor's property;

2) if after drawing up of the plan for the sale of the debtor's property, the insolvency proceedings are continued because it is possible to finance these proceedings from the debtor's funds, the administrator's remuneration from the sale of the debtor's non-pledged property, as well as from the debtor's recovered property, shall be 10 per cent of the amount intended for paying to the creditors. The administrator may also agree with the creditors' meeting or other sponsor of the costs of the insolvency proceedings on another amount of remuneration and the procedures for covering thereof;

3) if after drawing up of a report on non-existence of debtor's property, the insolvency proceedings are continued because an agreement has been reached on financing the costs of these proceedings in accordance with Section 168, Paragraph three of this Law, the administrator shall agree with the sponsor of the costs of the insolvency proceedings on the amount of the administrator's remuneration and the procedures for covering thereof.

(3) The remuneration for the sale of the pledged property of a debtor, if this has been performed by the administrator, shall be specified in the following amounts:

1) up to 4268 euro - 15 per cent of the amount payable to the creditor;

2) from 4268 euro to 14,228 euros - 640.20 euro plus 10 per cent of the amount exceeding 4268 euro payable to the creditor;

3) from 14,228 euro to 142,287 euros - 1636.20 euro plus 5 per cent of the amount exceeding 14,228 euro payable to the creditor;

4) from 142,287 euro to 711,435 euro - 8039.15 euro plus 3 per cent of the amount exceeding 142,287 euro payable to the creditor;

5) from 711,435 euro to 1,422,871 euro - 25,113.59 euro plus 2 per cent of the amount exceeding 711,435 euro payable to the creditor;

6) if the amount recovered exceeds 1,422,871 euro - 39,342.29 euro plus 1 per cent of the amount exceeding 1,422,871 euro payable to the creditor.

(4) In cases when an auction of pledged property is considered not to have taken place and the secured creditor wishes to keep the property for himself or herself, a coefficient of 0.3 shall be applied to the remuneration specified in Paragraph three of this Section.

(5) In cases when the administrator is removed from office in accordance with the procedures laid down in Section 90 of this Law, the administrator's remuneration shall be one minimum monthly wage from the moment of the administrator's appointment. In such case the administrator's remuneration shall be paid by the creditors who have voted for the proposal for his or her revoking, in proportion to the number of votes belonging thereto in the creditors' meeting.

(6) Remuneration shall not be specified for the administrator if he or she is removed from office due to the reasons referred to in Section 22, Paragraph two, Clauses 1, 2, 3, 4 or 7 of this Law.

(7) Value added tax shall be added to remuneration for the performance of administrator's obligations in the insolvency proceedings of a legal person, if the administrator is registered with the State Revenue Service Value Added Tax Taxable Persons Register.

[14 October 2010; 12 September 2013; 25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 170. Expenses of Insolvency Proceedings of a Legal Person

(1) The expenses related to ensuring insolvency proceedings of a legal person (except expenses related to property which is serving as security) shall not exceed an amount of five per cent of the total amount of the revenue from the alienation of assets, if these assets do not serve as security and if the creditors' meeting has not decided otherwise.

(2) The following shall be included in the expenses of insolvency proceedings of a legal person:

1) remuneration for the invited specialists during the provision of services according to the significance, extent and value of the services they have provided, but not exceeding the remuneration for analogous services in similar areas;

2) expenses for the upkeep of the debtor's property in the insolvency proceedings;

3) expenses for placing advertisements, organising auctions, opening, serving and closing a settlement account, expenses for the notary and postal services;

4) expenses related to the transfer of the matter to the archives;

5) business travel expenses, which shall be calculated in accordance with the laws and regulations regarding expenses related to business travels and business trips;

6) expenses for continuing the implementation of contracts which have not been terminated in the cases specified in the law, as well as for implementation of those contracts which the administrator has entered into with third persons during the insolvency proceedings of a legal person;

7) expenses that are related to the liquidation of the debtor, including removal, processing and burial of hazardous waste;

8) regular tax and duty payments for the time period from the day when the insolvency proceedings of a legal person are proclaimed;

9) expenses related to the maintenance of property belonging to third persons until it is transferred to these persons;

10) expenses which are justified and related to ensuring the specific insolvency proceedings of a legal person;

11) expenses which have arisen for a creditor, when bringing an action on behalf of the debtor against the Board members of this debtor, if the claim is satisfied and the property recovered is at least in the amount of the court expenses;

12) expenses for the execution of a judgment, if the administrator in accordance with Section 65, Clause 12 and Section 67, Clause 14 of this Law has requested termination of the execution proceedings of the judgment.

Chapter XXX
Costs for Ensuring Lawful and Effective Course of Insolvency Proceedings of a Natural Person

Section 171. Remuneration of an Administrator in Insolvency Proceedings of a Natural Person

(1) The administrator shall receive remuneration from the day of the appointment thereof until completion of the bankruptcy procedure, after performance of administrator's duties - a one-off remuneration in the amount of two minimum monthly wages.

(2) In addition to the remuneration referred to in Paragraph one of this Section, the administrator shall receive remuneration for recovering and selling the property within the scope of the bankruptcy procedure, in the amount provided for in the insolvency proceedings of a legal person.

(3) The administrator shall receive a remuneration for the legal aid provided by the administrator in the procedure for extinguishing the debtor's obligations after approval of the plan for extinguishing the obligations of a natural person and for giving advice for drawing up a plan for extinguishing obligations of a natural person in a bankruptcy procedure, which shall not exceed the payment for the provision of State ensured legal aid - legal consultations.

(4) The amount of the administrator's remuneration for performing the inspection referred to in Section 163 of this Law, shall be determined by the administrator agreeing with the relevant creditor in writing. If an agreement is not reached, the administrator shall receive remuneration at a fixed rate - a one-off remuneration in the amount of one minimum monthly wage.

(5) In case of insolvency proceedings of a natural person the administrator's remuneration shall be covered from the debtor's property and the deposit for the insolvency proceedings of a natural person, except the case referred to in Paragraph four of this Section, when expenses are covered by the relevant creditor.

(6) Value added tax shall be added to remuneration for the performance of administrator's obligations in the insolvency proceedings of a natural person, if the administrator is registered with the State Revenue Service Value Added Tax Taxable Persons Register.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 172. Costs of Insolvency Proceedings of a Natural Person

(1) Any costs incurred by the debtor after proclamation of insolvency proceedings of a natural person shall be divided into direct costs and indirect costs of insolvency proceedings of a natural person.

(2) Direct costs of insolvency proceedings of a natural person are the costs related to ensuring the insolvency proceedings of a natural person:

1) expenses for placing the advertisement, organising the auction, the opening, servicing and closure of a settlement account;

2) expenses for postal services for dispatching correspondence by mail;

3) expenses related to the evaluation of the property of a natural person;

4) expenses for notary services;

5) expenses related to the maintenance of the natural person's property if it has been transferred to the administrator, and inspection of transactions, as well as the property and transaction insurance.

(3) Direct costs of insolvency proceedings of a natural person shall be covered from the funds raised as a result of selling the debtor's property.

(4) Indirect costs of insolvency proceedings of a natural person are the costs related to support the debtor after proclamation of the insolvency proceedings of a natural person:

1) subsistence costs;

2) the regular tax and duty payments;

3) current payments of means of support;

4) statutory payments and payments arising from agreements that are carried on or have been signed after proclamation of insolvency proceedings of a natural person in accordance with the procedures laid down in this Law (e.g. administrative fines, rental payments, payments for utilities, etc.);

5) expenses related to the maintenance of property belonging to third persons until it is transferred to these persons.

(5) Indirect costs of insolvency proceedings of a natural person shall be covered from the debtor's funds which he or she is entitled to retain to cover own subsistence costs.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Division F
Supervision of Legal Protection Proceedings and Insolvency Proceedings

Chapter XXXI
Insolvency Administration in Legal Protection Proceedings and Insolvency Proceedings

Section 173. Competence of the Insolvency Administration

(1) The Insolvency Administration is an institution of direct administration under the supervision of the Minister for Justice which, within the scope of the competence specified in laws and regulations, implements the State policy in issues of legal protection proceedings and insolvency proceedings, protects the interests of employees in case of insolvency of their employer, and implements the protection of State and public interests in issues of legal protection proceedings and insolvency proceedings in accordance with the procedures laid down in the law.

(2) The following funds shall be used for implementation of the competence of the Insolvency Administration:

1) the part of the State entrepreneurial risk fee;

2) subsidies from general revenue of the State budget;

3) revenue from paid services provided;

4) foreign financial assistance funding.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 174. Rights of the Insolvency Administration in Supervision of Legal Protection Proceedings and Insolvency Proceedings

(1) In order to ensure the supervision of legal protection proceedings and insolvency proceedings, the Insolvency Administration shall control the administrator's activities in legal protection proceedings and insolvency proceedings, as well as examine complaints about the administrator's actions, except the cases specified in the law when complaints about the administrator's decisions shall be examined by the court in which the respective matter of insolvency proceedings was initiated.

(2) The Insolvency Administration is entitled when ensuring the supervision of legal protection proceedings and insolvency proceedings, to:

1) request from State and local government institutions, and receive from them free of charge, any information related to the legal protection proceedings and insolvency proceedings necessary for the implementation of the functions of the Insolvency Administration;

2) request from the institutions and persons involved in the legal protection proceedings and insolvency proceedings, and receive from them necessary information and documents regarding the course of the legal protection proceedings and insolvency proceedings;

3) request from the administrator and receive from him or her the necessary information and relevant documents regarding the course of the legal protection proceedings and insolvency proceedings;

4) request that the administrator presents the originals of the documents and receive copies of the documents to inspect the legality of the administrator's actions;

5) request and receive from the administrator explanations about his or her actions in the legal protection proceedings and insolvency proceedings;

6) invite the administrator to visit the Insolvency Administration, in order to provide explanations about the course of the legal protection proceedings and insolvency proceedings;

7) impose legal obligations on the administrator;

8) submit an application to court regarding the removal of the administrator from fulfilling the administrator's duties of the legal protection proceedings and insolvency proceedings;

9) propose a matter regarding expiry of the validity of the administrator's certificate or revocation in the cases referred to in this Law.

Chapter XXXII
Procedures for Contesting and Appealing a Decision of the Insolvency Administration

Section 175. Decisions of the Insolvency Administration, Contesting and Appealing thereof

(1) The Insolvency Administration shall take decisions:

1) to settle the claims from employees of insolvent employers;

2) on the administrator's actions in legal protection proceedings or insolvency proceedings, as well as to impose legal obligations in case of determining a violation;

3) on contested administrative acts and actual action in matters regarding certification of an administrator, including issuance of a certificate, termination or revocation of the validity of the certificate, as well as re-certification of the administrator;

4) to pay the deposit referred to in Sections 62 and 129 of this Law;

5) to disburse the funds referred to in Section 118.1 of this Law.

(2) The decision of the Insolvency Administration referred to in Paragraph one, Clause 1 of this Section may be contested with a higher authority. The decision of the higher authority on the relevant decision of the Insolvency Administration may be appealed to court.

(3) The actual action of the Association of Administrators and the administrative acts relating to the administrator's certification, including issuance of a certificate, termination or revocation of the validity of the certificate or re-certification of the administrator may be contested with the Insolvency Administration. The decision of the Insolvency Administration referred to in Paragraph one, Clause 3 of this Section may be appealed to court.

(4) The decisions referred to in Paragraphs two and three of this Section may be contested and appealed in accordance with the procedures laid down in the Administrative Procedure Law. Contesting or appeal of the abovementioned decisions shall not suspend the execution thereof.

(5) The decision of the Insolvency Administration referred to in Paragraph one, Clauses 2, 4, and 5 of this Section may be appealed within one month after receipt of the decision to court where the relevant matter of the legal protection proceedings or the matter of insolvency proceedings is or has been initiated. Submission of a complaint to court shall suspend the operation of the decision of the Insolvency Administration, except the decision referred to in Paragraph one, Clause 2 of this Section.

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Section 176. Submission of Complaints Regarding the Administrator's Action and Examination by the Insolvency Administration

(1) A creditor, commercial company (in legal protection proceedings), a natural person (in the insolvency proceedings thereof), the debtor's representative (in the insolvency proceedings of a legal person) or a third person, whose lawful rights have been infringed upon, may submit a complaint to the Insolvency Administration regarding the administrator's action.

(2) A creditor, commercial company (in legal protection proceedings), a natural person (in the insolvency proceedings thereof), the debtor's representative (in the insolvency proceedings of a legal person) or a third person, whose lawful rights have been infringed upon, may submit a complaint within three months from the day when the action with which the rights of the creditor, natural person, debtor's representative or third person have been infringed upon has been determined. If the legal protection proceedings or insolvency proceedings are terminated, a complaint may be submitted not later than within a year from the day of termination of the relevant proceedings.

(3) The Insolvency Administration shall not examine complaints regarding the administrator's decisions which are based on a dispute regarding rights.

(4) The Insolvency Administration, when examining complaints regarding the administrator's actions, is entitled to request the information and documents necessary thereto.

(5) The Insolvency Administration shall examine complaints regarding the administrator's actions within one month from the day of receipt of the complaint.

(6) If for objective reasons, it is impossible to conform to the time period referred to in Paragraph five of this Section, the Insolvency Administration may extend it, but not longer than by three months from the day of receipt of the complaint, notifying the submitter of the complaint accordingly.

Section 177. Complaint Regarding the Decision of the Insolvency Administration

[25 September 2014 / See Paragraph 34 of Transitional Provisions]

Transitional Provisions

1. With the coming into force of this Law the Insolvency Law (Latvijas Vestnesis, 2007, No. 188; 2009, No. 97), is repealed.

2. The norms of the Law On the Insolvency of Undertakings and Companies shall be applied to insolvency proceedings which have been initiated until 31 December 2007.

3. When deciding on covering the costs of the administration of insolvency proceedings which have been initiated in compliance with the Law On the Insolvency of Undertakings and Companies, the Insolvency Administration shall apply Cabinet Regulation No. 201 of 14 March 2006, Procedures for Covering the Remuneration of the Administrator of Insolvency Proceedings and the Costs of Administration, except the provisions on the amount of the administrator's remuneration (not including additional remuneration for each employee whose claim is satisfied from the resources of the guarantee fund for employees' claims), which shall be determined in accordance with the Insolvency Law which was in force from 1 January 2008 to 31 October 2010.

4. The administrator is not entitled to receive remuneration for insolvency proceedings which have been initiated in accordance with the Law On the Insolvency of Undertakings and Companies from the funds granted to the Insolvency Administration for this purpose, if:

1) the administrator has not submitted a request to the Insolvency Administration to cover the remuneration thereof within two months after the debtor's exclusion from the relevant public register;

2) the debtor has been excluded in these proceedings from the relevant public register by 2 July 2009 and the administrator has not submitted a request to the Insolvency Administration to cover the remuneration thereof by 30 November 2009;

3) by a court decision the administrator has been removed from fulfilling the administrator's duties in the case provided for in Section 28, Paragraph one, Clauses 2 or 3 of the Law On the Insolvency of Undertakings and Companies, or the administrator's certificate has been annulled because the administrator has provided false information in order to receive the certificate.

5. The norms of the Insolvency Law and the laws and regulations issued on the grounds thereof which are in force between 1 January 2008 and 31 October 2010 shall be applied to the legal protection proceedings and insolvency proceedings which were initiated during the abovementioned time period.

6. If insolvency proceedings of a natural person have been initiated by 31 October 2010 and have not been terminated, this person has the right to request that the court commences the procedure for extinguishing obligations in accordance with the provisions of this Law, after all the property of the natural person and the property provided for in the plan for satisfying creditors has been sold. In such case the debtor shall draw up a report on termination of the bankruptcy procedure and the plan for extinguishing obligations, in accordance with the provisions of this Law and send it to the creditors in accordance with the procedures laid down in Sections 149 and 157 of this Law. The report on termination of the bankruptcy procedure and the plan for extinguishing obligations shall be submitted to court not earlier than two months after sending of this document to the creditors. Within this time period the creditors have the right to notify also regarding the restrictions referred to in Sections 130 and 153 of this Law. The debtor shall inform the court of the abovementioned reports. From the moment when the court has approved the plan for extinguishing obligations, the procedure for extinguishing the obligations of a natural person shall be commenced in accordance with the provisions of this Law.

7. For administrators whose certificates have been issued in accordance with the requirements of Section 13 of the Law On the Insolvency of Undertakings and Companies for at least thee years practical experience in the supervisory institutions of undertakings or companies and executive bodies, but who do not have higher education in jurisprudence, the requirement referred to in Section 13, Paragraph one, Clause 2 of this Law regarding higher education in jurisprudence shall be applicable as of 1 January 2022. For administrators whose certificates have been issued before 31 October 2010, but who do not have higher education in jurisprudence, the requirement referred to in Section 13, Paragraph one, Clause 2 of this Law regarding higher education in jurisprudence shall be applicable as of 1 January 2022. If the administrator referred to in the first and second sentence of this Paragraph has not commenced studies in an educational institution for acquisition of higher education, he or she shall commence them by 1 January 2014 and submit a statement issued by the institution of higher education to the Association of Administrators. The administrators referred to in the first and second sentence of this Paragraph who are studying at an institution of higher education, when applying for re-certification, shall submit a statement issued by the institution of higher education to the Association of Administrators on successful continuation of the studies. If the administrator has not commenced studies at an institution of higher education within the time period specified in the third sentence of this Paragraph or, when applying for re-certification, has not submitted a statement on successful continuation of the studies, his or her certificate shall be recognised as valid within the time period indicated therein and this administrator shall not be re-certified.

[Amended by the Constitutional Court decision of 22 November 2011; 23 February 2012]

8. The right of the administrator referred to in Section 28, Paragraph one of this Law to empower another administrator for a time period not exceeding 60 days per year shall enter into effect on 1 January 2011. Until 31 December 2010, the administrator has the right to empower another administrator for performance of the duties specified in this Law for a time period not exceeding 10 days.

9. Within the scope of the funds for the State entrepreneurial risk fee the Cabinet shall determine which part of these funds shall be transferred into the relevant State budget sub-programme, from which the costs for the insolvency proceedings shall be covered in the insolvency proceedings of a legal person in accordance with the Insolvency Law which was in force from 1 January 2008 to 31 October 2010 (Section 182, Paragraph eight and Section 183, Paragraph five).

10. The remaining funds which are granted to the Insolvency Administration until 31 October 2010 for covering the remuneration and expenses of insolvency proceedings initiated within the scope of the State budget and State entrepreneurial risk fee, shall be spent by 31 October 2010 for covering the remuneration and expenses of the initiated insolvency proceedings during the subsequent financial years.

11. All amendments to this Law which come into force on 1 March 2015 shall be applicable to all proceedings initiated until 28 February 2015, except the cases referred to in Paragraphs 12, 13, 14, 15, 16, and 17 of the Transitional Provisions.

[18 December 2014]

12. The amendments coming into force on 1 March 2015 in respect of the status of a secured creditor for persons whose right to claim against a third person is secured by a commercial pledge, or mortgage on the property of the debtor registered in the Land Register or Ship Register, as well as for persons whose right to claim is conditional, shall be applied to insolvency proceedings that have been proclaimed as of 1 March 2015, and to the matters of legal protection proceedings that have been initiated as of 1 March 2015.

[18 December 2014]

13. In respect of legal protection proceedings that have been initiated yet not proclaimed by 28 February 2015, the administrator shall provide a reasoned opinion on the fact whether the creditors' claims in the plan of measures of legal protection proceedings and documents appended thereto are justified prima facie, if requested by a creditor.

[18 December 2014]

14. Amendments to Sections 38, 40, and 42 of this Law, coming into force on 1 March 2015, shall not be applicable to legal protection proceedings proclaimed until 28 February 2015.

[18 December 2014]

15. Auctions that have been announced until 1 March 2015 shall be completed in accordance with the regulation in this Law in force by 28 February 2015.

[18 December 2014]

16. Amendments to Chapter XVII "Appeal of Transactions" of this Law shall be applicable to insolvency proceedings proclaimed as of 1 March 2015.

[18 December 2014]

17. Amendments to Division D and Chapter XXX of Division E which come into force on 1 March 2015, shall be applicable to insolvency proceedings of a natural person proclaimed as of 1 March 2015. Amendments to this Law in Section 155 in respect of the terms in the plan for extinguishing obligations which come into force on 1 March 2015, shall be applicable also to insolvency proceedings that have been initiated until 28 February 2015.

[18 December 2014; 19 February 2015]

18. If the procedure for extinguishing of obligations in the insolvency proceedings of a natural person has been proclaimed by the date when amendments to Section 148, Paragraph six and Section 155, Paragraphs two, three, and four of this Law come into force, and has not been terminated, the natural person has the right, within 90 days after these amendments come into force, to submit his or her amendments to the plan for extinguishing of obligations for a court's approval, concurrently with submitting evidence to the fact that amendments to the plan for extinguishing obligations have been delivered to all creditors.

[18 December 2014; 19 February 2015]

19. If the insolvency proceedings have been initiated in accordance with the Law On the Insolvency of Undertakings and Companies and have not been terminated, the administrator shall, by 31 August 2015, submit an application to court in respect of termination of insolvency proceedings due to completion of bankruptcy procedure. If amicable settlement or reorganisation has been started in the abovementioned proceedings by 28 February 2015, the situation in the insolvency proceedings shall be addressed in accordance with the procedures laid down in the Law On the Insolvency of Undertakings and Companies.

[18 December 2014]

20. If the insolvency proceedings of a legal person have been initiated in accordance with the Insolvency Law that was in force until 31 October 2010 and have not been terminated, the administrator shall, by 31 December 2015, submit an application to court in respect of termination of the insolvency proceedings matter due to completion of bankruptcy procedure. If amicable settlement, reorganisation or legal protection proceedings (extrajudicial legal protection proceedings) have been started in the abovementioned proceedings by 28 February 2015, the situation in the insolvency proceedings shall be addressed in accordance with the procedures laid down in the Insolvency Law that was in force until 31 October 2010.

[18 December 2014]

21. The creditors' meeting may, by 31 August 2015, take a decision to apply amicable settlement, settlement, reorganisation or legal protection proceedings in accordance with laws and regulations that were in force on the day when the abovementioned insolvency proceedings were initiated.

[18 December 2014]

22. If amicable settlement, reorganisation or legal protection proceedings (extrajudicial legal protection proceedings) that have been initiated in accordance with the procedures laid down in Paragraphs 19, 20, and 21 of these Transitional Provisions are discontinued after 28 February 2015, the administrator shall initiate bankruptcy procedure by applying the legal provisions that were in force on the day when the abovementioned insolvency proceedings were initiated.

[18 December 2014]

23. If the administrator has initiated bankruptcy procedure after the cases referred to in Paragraph 21 of these Transitional Provisions, he or she shall submit an application to court on termination of insolvency proceedings due to completion of bankruptcy procedure within one year after the start date of the bankruptcy procedure, by applying legal provisions that were in force on the day when the abovementioned insolvency proceedings were initiated.

[18 December 2014]

24. If the administrator fails to submit the application referred to in Paragraphs 19 and 20 of these Transitional Provisions to court by the deadlines specified therein, the Insolvency Administration shall submit an application to court in respect of revoking the administrator from performing his or her duties in the respective insolvency proceedings, except the cases when:

1) insolvency proceedings cannot be terminated due to initiated civil proceedings or administrative matters;

2) according to an evaluation by the Insolvency Administration, insolvency proceedings cannot be terminated due to justified reasons;

3) the debtor in respect of whom insolvency proceedings have been proclaimed has been recognised a victim in criminal proceedings.

[18 December 2014]

25. In the cases referred to in Paragraph 24, Sub-paragraph 1 of these Transitional Provisions, the Insolvency Administration shall impose a legal obligation on the administrator to convene a creditors' meeting for deciding on the issue of proceeding with the court procedures in accordance with the legal provisions that were in force on the day when the abovementioned insolvency proceedings were initiated: by 30 November 2015 (if the insolvency proceedings have been initiated in accordance with the Law On the Insolvency of Undertakings and Companies, and have not been terminated), or by 31 March 2016 (if the insolvency proceedings of a legal person have been initiated in accordance with the Insolvency Law that was in force until 31 October 2010, and have not been terminated). If the creditors' meeting votes on discontinuation of court procedures, the administrator shall start or complete the selling of the property, satisfy the creditors' claims and shall submit an application to court in respect of termination of insolvency proceedings due to completion of bankruptcy procedure: by 30 November 2016 (if the insolvency proceedings have been initiated in accordance with the Law On the Insolvency of Undertakings and Companies, and have not been terminated), or by 31 December 2017 (if the insolvency proceedings of a legal person have been initiated in accordance with the Insolvency Law that was in force until 31 October 2010, and have not been terminated). If the creditors' meeting votes on proceeding with court procedures, the administrator shall convene the next creditors' meeting for deciding on the issue of either termination of the insolvency proceedings or proceeding with court procedure: by 30 November 2016 (if the insolvency proceedings have been initiated in accordance with the Law On the Insolvency of Undertakings and Companies, and have not been terminated), or by 31 December 2017 (if the insolvency proceedings of a legal person have been initiated in accordance with the Insolvency Law that was in force until 31 October 2010, and have not been terminated). The decision shall be deemed taken when supported by three quarters of the creditors with voting rights attending the meeting.

[18 December 2014]

26. In the cases referred to in Paragraph 24, Sub-paragraph 2 of these Transitional Provisions, the Insolvency Administration shall impose legal obligation on the administrator to convene a creditors' meeting for deciding on the issue of completing the bankruptcy procedure in accordance with the legal provisions that were in force on the day when the abovementioned insolvency proceedings were initiated: by 30 November 2015 (if the insolvency proceedings have been initiated in accordance with the Law On the Insolvency of Undertakings and Companies, and have not been terminated), or by 31 March 2016 (if the insolvency proceedings a legal person have been initiated in accordance with the Insolvency Law that was in force until 31 October 2010, and have not been terminated). If the creditors' meeting votes in favour of completing the bankruptcy procedure, the administrator shall start or complete the selling of the property, satisfy the creditors' claims and shall submit an application to court in respect of termination of insolvency proceedings due to completion of bankruptcy procedure: by 30 November 2016 (if the insolvency proceedings have been initiated in accordance with the Law On the Insolvency of Undertakings and Companies, and have not been terminated), or by 31 December 2017 (if the insolvency proceedings of a legal person have been initiated in accordance with the Insolvency Law that was in force until 31 October 2010, and have not been terminated). If the creditors' meeting has not voted on the actions for completing the bankruptcy procedure, the administrator shall convene the next creditors' meeting for deciding on the issue of terminating the insolvency proceedings: by 30 November 2016 (if the insolvency proceedings have been initiated in accordance with the Law On the Insolvency of Undertakings and Companies, and have not been terminated), or by 31 December 2017 (if the insolvency proceedings of a legal person have been initiated in accordance with the Insolvency Law that was in force until 31 October 2010, and have not been terminated). The decision shall be deemed taken when supported by three quarters of the creditors with voting rights attending the meeting.

[18 December 2014]

27. If the administrator fails to submit the application to court requesting termination of insolvency proceedings in the cases referred to in Paragraph 23, 25, 26, or 28 of these Transitional Provisions and by the deadlines specified therein, the Insolvency Administration shall submit an application to court in respect of revoking the administrator from performing his or her duties in the respective insolvency proceedings and requesting termination of the insolvency proceedings.

[25 September 2014]

28. If the court revokes the administrator from performing his or her duties in the relevant insolvency proceedings based on the application by the Insolvency Administration referred to in Paragraph 24 of these Transitional Provisions, the new administrator shall start or complete the selling of the property, satisfy the creditors' claims and shall submit an application to court in respect of termination of insolvency proceedings due to completion of bankruptcy procedure: by 31 August 2016 (if the insolvency proceedings have been initiated in accordance with the Law On the Insolvency of Undertakings and Companies, and have not been terminated), or by 31 December 2016 (if the insolvency proceedings of a legal person have been initiated in accordance with the Insolvency Law that was in force until 31 October 2010, and have not been terminated).

[18 December 2014]

29. If the court has revoked the administrator from performing his or her duties in the insolvency proceedings concerned based on the application of the Insolvency Administration referred to in Paragraph 27 of these Transitional Provisions, and the administrator fails to perform the actions referred to in the court decision which are related to exclusion of the debtor from the relevant public register or termination of the insolvency proceedings, the Association of Administrators, upon proposal of the Insolvency Administration, may take a decision to terminate the operation of the administrator's certificate.

[25 September 2014]

30. In order to ensure the performance of the duties referred to in Paragraphs 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, and 29 of these Transitional Provisions, the administrator may provide information to creditors in accordance with the procedures laid down in Section 81, Paragraph three of this Law. Creditors shall submit an application to the administrator by 1 April 2015, indicating their electronic mail address.

[18 December 2014]

31. If any contradictions are detected between various regulations governing insolvency proceedings, for the purpose of complying with Paragraphs 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, and 30 of these Transitional Provisions, those legal provisions shall be applied that were in force on the day when the insolvency proceedings concerned were initiated, unless laid down otherwise in Paragraphs 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, and 22 of these Transitional Provisions.

[18 December 2014]

32. Value added tax shall be added to the administrator's remuneration for performing his or her duties in respect of insolvency proceedings to which laws and regulations referred to in Paragraphs 2 and 5 of these Transitional Provisions apply, if the administrator is registered with the State Revenue Service Value Added Tax Taxable Persons Register.

[25 September 2014]

33. [19 February 2015]

34. Sections 1-76 of the the law "Amendments to the Insolvency Law" adopted by the Saeima on 25 September 2014 shall come into force on 1 March 2015.

[18 December 2014 / The abovementioned amendments are included in the wording of the Law as on 1 March 2015]

This Law shall come into force on 1 November 2010.

This Law has been adopted by the Saeima on 26 July 2010.

President V. Zatlers

Adopted 6 August 2010

 


1 The Parliament of the Republic of Latvia

Translation © 2017 Valsts valodas centrs (State Language Centre)

 
Document information
Status:
In force
in force
Issuer: Saeima Type: law Adoption: 26.07.2010.Entry into force: 01.11.2010.Theme:  InsolvencyPublication: "Latvijas Vēstnesis", 124 (4316), 06.08.2010.
Language:
Related documents
  • Amendments
  • Changes legal status of
  • Legal basis of
  • Rulings of Constitutional Court
  • Annotation / draft legal act
  • Explanations
  • Other related documents
214590
{"selected":{"value":"01.07.2018","content":"<font class='s-1'>01.07.2018.-31.12.2018.<\/font> <font class='s-3'>Sp\u0113k\u0101 eso\u0161\u0101<\/font>"},"data":[{"value":"15.04.2019","iso_value":"2019\/04\/15","content":"<font class='s-1'>15.04.2019.-...<\/font> <font class='s-2'>N\u0101kotnes<\/font>"},{"value":"01.01.2019","iso_value":"2019\/01\/01","content":"<font class='s-1'>01.01.2019.-14.04.2019.<\/font> <font class='s-2'>N\u0101kotnes<\/font>"},{"value":"01.07.2018","iso_value":"2018\/07\/01","content":"<font class='s-1'>01.07.2018.-31.12.2018.<\/font> <font class='s-3'>Sp\u0113k\u0101 eso\u0161\u0101<\/font>"},{"value":"06.01.2017","iso_value":"2017\/01\/06","content":"<font class='s-1'>06.01.2017.-30.06.2018.<\/font> <font class='s-2'>V\u0113sturisk\u0101<\/font>"},{"value":"23.12.2015","iso_value":"2015\/12\/23","content":"<font class='s-1'>23.12.2015.-05.01.2017.<\/font> <font class='s-2'>V\u0113sturisk\u0101<\/font>"},{"value":"01.03.2015","iso_value":"2015\/03\/01","content":"<font class='s-1'>01.03.2015.-22.12.2015.<\/font> <font class='s-2'>V\u0113sturisk\u0101<\/font>"},{"value":"01.01.2015","iso_value":"2015\/01\/01","content":"<font class='s-1'>01.01.2015.-28.02.2015.<\/font> <font class='s-2'>V\u0113sturisk\u0101<\/font>"},{"value":"01.01.2014","iso_value":"2014\/01\/01","content":"<font class='s-1'>01.01.2014.-31.12.2014.<\/font> <font class='s-2'>V\u0113sturisk\u0101<\/font>"},{"value":"07.08.2013","iso_value":"2013\/08\/07","content":"<font class='s-1'>07.08.2013.-31.12.2013.<\/font> <font class='s-2'>V\u0113sturisk\u0101<\/font>"},{"value":"24.04.2012","iso_value":"2012\/04\/24","content":"<font class='s-1'>24.04.2012.-06.08.2013.<\/font> <font class='s-2'>V\u0113sturisk\u0101<\/font>"},{"value":"01.03.2012","iso_value":"2012\/03\/01","content":"<font class='s-1'>01.03.2012.-23.04.2012.<\/font> <font class='s-2'>V\u0113sturisk\u0101<\/font>"},{"value":"01.11.2010","iso_value":"2010\/11\/01","content":"<font class='s-1'>01.11.2010.-29.02.2012.<\/font> <font class='s-2'>Pamata<\/font>"}]}
01.07.2018
84
0
Saite uz tiesību aktuAtsauce uz tiesību aktu
 
0
Vēstnesim 100 About Likumi.lv
News archive
Useful links
Contacts
For feedback
Terms of service
Privacy policy
Cookies
RSS logo
Latvijas Vēstnesis "Everyone has the right to know about his or her rights."
Article 90 of the Constitution of the Republic of Latvia
© Official publisher "Latvijas Vēstnesis"
ISO 9001:2008 (quality management system)
ISO 27001:2013 (information security) Kvalitātes balva