The bankruptcy is an institution that finds its complete and meticulous discipline in the Royal Decree number 267 of 1942, better known as the Bankruptcy Law. You may click this site for more information.
The first article of the bankruptcy law identifies the subjective assumptions: who can fail. Commercial entrepreneurs are subject to bankruptcy proceedings, without prejudice to public officials. Commercial entrepreneurs are better identified in article 2195 of the civil code: they are the subjects that deal with the production of goods and services, intermediation in the exchange of goods, transport, banking or insurance activity and auxiliary activities to these. However, it should not be an agricultural enterprise: the agricultural enterprise is not commercial by definition. Article 1 of the bankruptcy law is without prejudice to certain exceptions to bankruptcy, these are represented by the joint possession (of all) of the following requirements:
If you demonstrate that you have owned all three of the aforementioned requirements in the three years prior to filing for bankruptcy, even if you are a commercial entrepreneur, you will not be declared bankrupt.
Article 5 of the bankruptcy law identifies the objective assumption. Objective condition is the state of insolvency. The same article gives a deliberately imprecise definition of a state of insolvency, which manifests itself “with defaults or other external facts, which prove that the debtor is no longer able to meet his obligations regularly “.
The rule deliberately leaves ample room for discretion to the judge: a copious jurisprudence has developed on the subject. It is considered, for example, that the state of insolvency cannot be either temporary or transitory, having instead to represent a pathological situation of the company. Legislative Decree No. 169 of 2007 then established that, for the purposes of filing for bankruptcy, the amount of overdue and unpaid debts cannot be less than thirty thousand euros.
Having ascertained the existence of the conditions listed above, the court declares the bankruptcy of the entrepreneur. From this derive numerous consequences that can be divided into a patrimonial consequence, consequences on the person of the entrepreneur and the effects of a procedural nature.