Company bankruptcy: Procedure and key steps  

Bankruptcy is a legal process initiated when a company is no longer able to settle its debts to creditors.

Below is a guide through the main steps of the bankruptcy procedure in Montenegro.

1. FILING FOR BANKRUPTCY

The request is submitted to the Commercial Court of Montenegro.

Applicants may include:

• the company’s founder
• a creditor (supplier, state authority, employee).

The request must be accompanied by documentation proving that the company is unable to meet its obligations.

2. DECISION OF THE COMMERCIAL COURT

After receiving the request, the Commercial Court issues a decision to open bankruptcy proceedings and informs creditors.

• Creditors are notified through the Official Gazette of Montenegro and the bulletin board of the Commercial Court.
• The decision specifies the deadline within which creditors must file their claims.

3. FILING OF CREDITORS’ CLAIMS

Creditors are obliged to file their claims within the prescribed deadline, with supporting evidence such as:

• invoices
• account statements
• court judgments
• other relevant documents.

If a creditor fails to file their claim on time, the claim will be rejected as late.

4. BANKRUPTCY ESTATE

The bankruptcy estate represents the total assets of the company from which creditors are paid. It may include:

• real estate
• vehicles
• receivables from customers
• inventory of goods or products
• cash in the company’s bank account.

IF THE COMPANY POSSESSES ANY ASSETS, THESE ARE SEIZED BY THE COMMERCIAL COURT, APPRAISED, AND SOLD IN ORDER TO SATISFY CREDITORS.
PAYMENTS TO CREDITORS ARE MADE EXCLUSIVELY FROM THE BANKRUPTCY ESTATE.

5. DURATION OF BANKRUPTCY PROCEEDINGS

Bankruptcy can last from two months to several years, depending on:

• the complexity of the case
• the value and scope of assets
• the workload of the Commercial Court.

If the company owns significant assets, the process of appraisal and sale can considerably extend the duration of the proceedings.

Bankruptcy proceedings are a necessary step in closing a company that can no longer meet its obligations. Although they can be lengthy and complex, the main goal is to ensure that the company’s assets are properly distributed among creditors.

Due to the complexity and potential duration of the process, it is crucial to have a professional team to guide you through and minimize the risk of errors.

At Perfectum, with experience in over 500 bankruptcy cases, we provide full support and expertise throughout all phases – from preparing documentation to completing the process.
Our goal is to ensure that closing your company is as efficient and stress-free as possible