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How much does a pre-bankruptcy settlement cost and what if you do not cover the costs?

The total costs of a pre-bankruptcy settlement according to the Tax Administration Regulation consist of administrative costs for initiating and conducting the procedure, rewards and reimbursements for the work of the pre-bankruptcy settlement commissioner, and costs that are prescribed by law to be settled as costs of the pre-bankruptcy settlement procedure.

Administrative costs for initiating and conducting a pre-bankruptcy settlement are divided into three categories. In the expedited pre-bankruptcy settlement procedure, they amount to 1712 kuna, in the regular procedure where the debtor’s obligation does not exceed 10 million kuna, the costs are 3080 kuna, while for the regular procedure where the debtor’s obligation exceeds 10 million kuna, 5890 kuna must be allocated.

In addition, the pre-bankruptcy settlement commissioner is entitled to a reward of 3000 kuna if it is a regular procedure where the obligation does not exceed 10 million kuna and 6000 kuna if it is an amount greater than 10 million kuna. 
The commissioner is entitled to reimbursement of costs incurred while performing actions, provided that the pre-bankruptcy settlement council deems the cost justified and necessary, it is noted.
In the event that the pre-bankruptcy settlement commissioner is relieved or the procedure is suspended before the hearing for the determination of claims, after the commissioner has begun examining the reported claims, he is entitled to half of the reward..
If the pre-bankruptcy settlement commissioner is relieved or the procedure is suspended, and the commissioner has not taken any action in the procedure, he is not entitled to reimbursement.
As emphasized by the Tax Administration, in the event that the pre-bankruptcy settlement commissioner is relieved or the procedure is suspended, and the commissioner has taken actions in the procedure but has not begun examining the claims, he is entitled to one-third of the reward.
If another pre-bankruptcy settlement commissioner is appointed in the pre-bankruptcy settlement procedure before the hearing for the determination of claims, he is entitled to reimbursement.
In the event that another pre-bankruptcy settlement commissioner is appointed in the pre-bankruptcy settlement procedure after the determination of claims, he is entitled to half of the reimbursement.
Costs that are prescribed by law or special law to be settled as costs of the pre-bankruptcy settlement procedure will be determined in the amount prescribed by that law.
The cost of issuing a certificate that the debtor is unable to pay, in cases where the Agency submits a proposal for initiating bankruptcy proceedings against the debtor ex officio in accordance with the Law, is considered a cost of the pre-bankruptcy settlement procedure.
If the amount of the cost is not prescribed, the council will determine the amount of the cost according to the circumstances of that procedure.

The debtor is obliged to advance the costs already when submitting the proposal for the pre-bankruptcy settlement, and no later than the expiration of the deadline from the decision on costs. The debtor is obliged to pay the entire amount of the costs determined by the decision on costs no later than eight days from the expiration of the eighth day from the publication of the decision on costs on the Agency’s website.

If the debtor does not cover the costs contained in the decision on costs within the prescribed deadline, the council will place a certificate of enforceability on the decision on costs and deliver it to the Agency for execution in accordance with the provisions of the Law on Enforcement on Monetary Assets, for the amount of costs that the debtor is obliged to pay to the Agency. If the debtor has not covered the costs of the pre-bankruptcy settlement commissioner determined by the decision on costs within the prescribed deadline, the pre-bankruptcy settlement commissioner may submit to the Agency in the system of enforced collection the decision on costs with a certificate of enforceability for the collection of his claim from the decision on costs.

These provisions are in force from January 11.