The rehabilitation of contracts for the acquisition of assets in installments

Abstract

The Consolidated Text of the Bankruptcy Law provides special regulations for the reinstatement of contracts for the acquisition of movable or immovable property with a deferred price, in the interest of the bankruptcy estate and to maintain the business activity of the bankrupt. Rehabilitation is permitted in the event of a resolution prior to the declaration of bankruptcy that occurred in the three months prior to the date of the bankruptcy order, provided that the bankruptcy administrator pays the outstanding amounts at the time of the reinstatement and assumes future payments from the estate. Rehabilitation must occur before the expiration of the deadline for the communication of claims and does not require the filing of a bankruptcy incidental proceeding, but rather a mere notification, which is recommended to be reliable. If, in the three months prior to the declaration of bankruptcy, an action resolutory of the sale of real estate was exercised due to non-payment of the deferred price and arising from an explicit resolutory condition registered in the Property Registry, the reinstatement will take place within the scope of said procedure and will result in its closure. The same applies if, within this period, actions to recover assets sold in installments with retention of title have been exercised through contracts registered in the Registry of Movable Property. The transferor may object to the reinstatement for specific reasons and has the right to resolve the contract in the event of subsequent breach of the reinstated contract, without the possibility of further reinstatement.