Debtors’ assets that are non-traceable in the insolvency procedure of natural persons

(entry into force on December 26, 2015)

The law on the insolvency of natural persons indicates a series of non-traceable goods, belonging to the debtor, and which cannot be subject to repayment in the procedure provided by Law 151/2015.

Are included in the category of ASSETS required to ensure a minimum living standard:
a) personal or household goods, including furniture, necessary to the debtor and its family for a decent living, worth up to RON 5,000 each;
b) religious items, if there are not more of the same kind, which are worth up to RON 2,000 each;
c) a vehicle, if it is essential to the debtor and its family, including to travel from/to work and which is worth less than EUR 5,000, and the costs of its acquisition is not subject to any claim against the debtor’s property;
d) reasonably necessary items to the debtor suffering from a disability or the persons dependent on him who are in this situation and the objects used for taking care of the sick persons;
e) food necessary to the debtor or to the persons dependent on him during the course of the procedure;
f) assets which serve the debtor’s occupation or profession;
g) agricultural inventory, including working animals, the feedstuff for these animals and the seeds for the land culture, in case the debtor is engaged in agriculture, to the extent necessary for him to continue agricultural works, except for the case when over these assets there is a real right of guarantee or privilege for guaranteeing the claim;
h) personal or family letters, photos and pictures and others alike;

As regards the family residence, the procedure administrator is the person entitled to assess the housing situation of the debtor and he shall make suggestions on the family residence during the procedure.

If by the reimbursement plan it is established that the property, the family residence, is to be sold in order to cover the liability:
a) the debtor shall be allowed to stay in the house until the sale, but no more than 6 months after the date envisaged in the recovery plan, if a more favourable term is not agreed upon.
b) if the recovery method is payment, which operates before the expiry of the 6 months deadline from the date stated in the plan for recovery, the debtor shall be allowed to stay in the house until the completion of this term, with a rent payment in the amount established by the insolvency Committee;
c) if recovery, by any method provided for by the law, except under letter b), operates before the expiry of the 6 months deadline referred to in the recovery plan, the debtor shall be allowed to stay in the house until the expiry of this term, with a rent payment in the amount established by the insolvency Committee;
d) after the asset recovery, the debtor has a preference right upon the conclusion of a lease agreement of the house or a part thereof, to an amount of the rent established under market conditions.

Nevertheless, the solution of foreclosure of the real estate as family residence shall be nuanced in terms of the Decision of the Court of Justice of the European Union, in case C-34/13.

In this regard, the European Court of the Human Rights considered, on the one part, that the loss of a house is one of the most serious violations of the right to respect for home and, on the other part, that any person at risk of being the victim of such interference must in principle be able to request the examination of the proportionality of this measure (see the European Court of Human Rights, Judgment McCann versus the United Kingdom, no. 19009/04, § 50, the European Court of Human Rights 2008, and Judgment Rousk versus Sweden, no. 27183/04, § 137).