initiation of bankruptcy proceedings Article 244
(the coming into effect of the legal consequences of the initiation of bankruptcy proceedings)
(1) The legal consequences of initiation of bankruptcy proceedings shall come into effect as of the beginning of the day of publication of the notice of the initiation of bankruptcy proceedings.
(2) If the resolution on the initiation of bankruptcy proceedings is set aside by virtue of an appeal, but the court has, in a repeated procedure, once again issued the resolution on the initiation of bankruptcy proceedings, the legal consequences of the initiation of bankruptcy proceedings shall be considered to occur as of the day when the notice of the initiation of bankruptcy proceedings was published on the basis of the first resolution on the initiation of bankruptcy proceedings.
Article 245
(delegation of powers to the administrator)
(1) With the initiation of bankruptcy proceedings, the powers of the debtor’s representatives, holders of procuration and other persons authorised to represent the debtor, as well as the powers of the management of the debtor to conduct his operations, shall expire.
(2) With the initiation of bankruptcy proceedings, the administrator shall acquire the powers to represent the debtor in bankruptcy and the conduct of his operations referred to in the second paragraph of Article 97 of this Act.
(3) The administrator shall, on the next working day following the initiation of bankruptcy proceedings at the latest, inform the providers of payment services who keep the debtor's transaction accounts of the initiation of bankruptcy proceedings.
Article 246
(termination of validity of debtor’s payment orders and other payments to the debit of the debtor’s transaction account)
(1) When bankruptcy proceedings are initiated, the payment orders for executing a legal transaction or another legal action for the account of the debtor issued by the debtor prior to the initiation of bankruptcy proceedings shall no longer be valid, unless otherwise provided for in the second and third paragraphs of this Article, or in another law in respect of a particular type of payment order.
(2) The initiation of bankruptcy proceedings shall not affect the validity of the debtor’s payment order, executed by the receiver of such order within eight days following the publication of the notice of the initiation of bankruptcy proceedings, provided that he was not aware of the initiation of bankruptcy proceedings when executing the order, unless otherwise provided for by the law in respect of a particular type of payment order.
(3) The initiation of bankruptcy proceedings shall not affect the validity of the debtor’s payment order to the debit of his transaction account if the provider of payment services keeping this transaction account has received notification from the administrator of the initiation of bankruptcy proceedings at the time when the payment order could no longer be cancelled under Articles 64 or 65 of ZPlaP.
(4) After the initiation of bankruptcy proceedings the provider of payment services shall not execute any payment to the debit of the insolvent debtor's transaction account on the basis of a resolution on execution or resolution on compulsory settlement, even if by the time the conditions for the execution of such payment laid down in ZIZ or in act governing the tax procedure are satisfied, he has not received a resolution from the enforcement court or tax authority providing for the suspension of the enforcement procedure under the first paragraph of Article 132 of this Act.
(5) The prohibition referred to in the fourth paragraph of this Article shall apply to payments, the execution of which may no longer be cancelled under Articles 64 or 65 of ZPlaP, when the provider of payment services receives the notification of the administrator on the initiation of bankruptcy proceedings.
(6) The prohibition referred to in the fourth paragraph of this Article shall apply until such time as the provider of payment services receives the resolution of the enforcement court or tax authority on the continuation of the enforcement procedure referred to in the second paragraph of Article 281 of this Act.
Article 247
(cessation of validity of debtor’s offers)
When bankruptcy proceedings are initiated, the offers given by the debtor in bankruptcy prior to the initiation of bankruptcy proceedings shall no longer be valid, unless the receiver has received such offer before the initiation of bankruptcy proceedings.
Article 248
(cancellation of rental and lease contracts)
(1) When bankruptcy proceedings are initiated, the debtor in bankruptcy shall acquire the right to cancel rental and lease contracts (hereinafter referred to as: right of notice) concluded prior to the initiation of bankruptcy proceedings, with one month’s notice, irrespective of the general rules provided for by the law or a contract concerning the right to cancel a rental or lease contract which would apply if the debtor in bankruptcy as a tenant or a lessor was not the subject of the initiated bankruptcy proceedings.
(2) If the debtor in bankruptcy exercises the right of notice, the period of notice shall start on the last day of the month in which the other party to the contract has received the statement of the debtor in bankruptcy on the cancellation, and shall expire on the last day of the following month.
(3) Exercising the right of notice under the first and second paragraphs of this Article shall be without prejudice to the right of the other party to the contract to request from the debtor in bankruptcy compensation for damages incurred by such party for the reason that the right of notice has been executed contrary to the general rules referred to in the first paragraph of this Article.
(4) The other party to the contract shall lodge a claim for compensation for damages referred to in the third paragraph of this Article in bankruptcy proceedings, and shall
be paid from the distribution estate under the rules of this Act concerning payment of creditors’ claims.
Article 249(suspension of the statute of limitations of claims of the debtor in bankruptcy)
The statute of limitation of claims of a debtor in bankruptcy against debtors shall not run within the period of one year following the initiation of bankruptcy proceedings.
Article 250 (right of reclamation)
(1) A seller who has not been paid the full purchase price shall have the right to demand the return of the goods which were delivered to the debtor in bankruptcy from elsewhere and before the start of bankruptcy proceedings if they have not arrived at the destination, or the debtor in bankruptcy has not yet taken possession of such goods (hereinafter referred to as: right of reclamation).
(2) Also, a commission agent of the purchase committee shall have a reclamation right.
(3) If the debtor in bankruptcy has taken over goods at their destination before the initiation of bankruptcy proceedings only for safekeeping purposes, the seller shall not have a right of reclamation, but may exercise the exclusion right in bankruptcy proceedings.
Article 251
(service of documents to the administrator in court and other procedures) After the initiation of bankruptcy proceedings all writings in court and other procedures which should be served to the debtor in bankruptcy as a client or to another party to the proceedings shall be served to the administrator at his address as entered under the second indent of the second paragraph of Article 229 of this Act.
Subsection 5.3.2: Legal consequences of the initiation of bankruptcy proceedings