Distinction of Bankruptcy Proceedings between Financial Institutions and Business Organizations in Kosovo

Abstract

Just as the establishment of business organizations and fnancial institutions requires a legal procedure to be initiated, the same applies for the commencement of activities by a trade company or a fnancial institution in which it is necessary to terminate the existence of a company and even more the fnancial institutions so that there is clear legal guidance. When business organizations encounter diffcult fnancial situation, including the company’s incapacity to pay its fnancial obligations to the creditors, the bankruptcy proceedings for business organizations and fnancial institutions should be clearly defned in details from the legal aspect of view. Taking into account the danger and sensitivity of the bankruptcy proceedings, the legislator body under the Kosovan law has set forth to divide the bankruptcy proceedings between the fnancial institutions and business organizations. What are the aims of the current law relating to distinction of bankruptcy proceedings? What does distinguish the bankruptcy of the business organizations, and which are the characteristics of the bankruptcy proceedings of the fnancial institutions? By complying with the best practices on commencement of the bankruptcy proceedings, including warranties to the creditors, the protection of the debtor’s dignity at satisfactory levels is the substantial objective of the laws as a guarantee to success to make sure that the bankruptcy proceedings shall be complied with in order to achieve the desired level. Having in consideration all the diffculties in bankruptcy proceedings, both in business organizations and in fnancial institutions, the appointment of competent persons in the position of administrators is a momentum of particular importance as to which direction the proceedings will take course as a whole. A successful administrator, even in the reorganization or bankruptcy proceedings, by protecting the assets, creditors and debtors, is the leader of success in bankruptcy proceedings relating to commercial companies and fnancial institutions. The moral of the bankruptcy proceedings of business organizations and fnancial institutions is to provide as much as possible warranties to its creditors that the credited means shall be paid to its creditors.