Insolvency vs. bankruptcy in Romania — key differences and creditor implications

Insolvency is the state of payment incapacity; bankruptcy is the liquidation procedure within insolvency. Not all insolvencies lead to bankruptcy — judicial reorganisation is an alternative.

24.03.2025 · Updated: 20.04.2026

Insolvency vs. bankruptcy in Romania

Under Law 85/2014, insolvency is the state of payment incapacity (debts unpaid for 60+ days, minimum 50,000 RON). Two procedures: judicial reorganisation (debtor continues under an approved plan) or bankruptcy (liquidation). Civil cases against an insolvent debtor are automatically suspended — creditors must register claims in the insolvency table. Priority order at bankruptcy: secured creditors → wages → taxes → unsecured creditors.

General information only — this does not constitute legal advice. Data sourced from portal.just.ro, updated daily.

Frequently Asked Questions

The civil case is suspended. You must register your claim in the insolvency creditors' table within the deadline set by the syndic judge.

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