Bankruptcy and Bankruptcy Proceedings - Legal and Financial Support for Exiting a Crisis
Bankruptcy proceedings do not have to mean the end of business. With timely action and expert guidance, company owners can often retain assets, preserve jobs and continue operations - through a bankruptcy plan as an alternative to liquidation.
Maneo d.o.o. is a leading consulting firm in Croatia in the fields of pre-bankruptcy, bankruptcy and restructuring. We have more than 1,000 successfully completed procedures behind us, 94% of settlements concluded and 20 years of experience in business advisory. We support companies that are facing bankruptcy, are already in bankruptcy or have an opportunity to implement a bankruptcy plan.
Request a free initial consultation →
What Are Bankruptcy Proceedings?
Bankruptcy proceedings are court non-contentious proceedings conducted over a legal entity or the assets of an individual debtor for the collective settlement of creditors. The objective is to realise the debtor's assets and distribute the proceeds to creditors - in the order and scope prescribed by the Bankruptcy Act.
In Croatia, bankruptcy is regulated by the Bankruptcy Act (Official Gazette 71/15, 104/17, 36/22, 27/24), which replaced the previous bankruptcy framework in September 2015 and introduced new rules on pre-bankruptcy proceedings, bankruptcy plans and international bankruptcy.
Proceedings are opened against an entrepreneur when one of the two basic bankruptcy grounds exists:
- Inability to pay - a lasting inability to meet due monetary obligations, which the law links to an account blockade lasting more than 60 days.
- Over-indebtedness - a situation in which the debtor's assets do not cover its liabilities.
A petition for opening proceedings may be filed by the debtor, a creditor, the Republic of Croatia or the Financial Agency. According to Fina practice, if a legal entity has an uninterrupted account blockade for 120 days, Fina is required to file a petition to open bankruptcy proceedings within eight days of the conditions being met.
Regardless of who files the petition, every bankruptcy procedure has serious legal and financial consequences - and requires expert preparation from day one.
Stečajni postupak, predstečajni postupak ili likvidacija — koja je razlika?
Many entrepreneurs assume that when they hear the word "bankruptcy", everything is over. In reality, the Croatian legal framework offers three very different paths - each with a different outcome.
Pre-bankruptcy proceedings. Debt reorganisation before bankruptcy is opened. Accounts are unblocked, enforcement actions are suspended and, with creditor consent, partial write-off and rescheduling of obligations are possible. The goal is to avoid bankruptcy and continue operating. We write more about this option on the pre-bankruptcy proceedings page, while practical advice on recognising the right moment is available in our article on how to avoid bankruptcy through pre-bankruptcy proceedings.
Bankruptcy proceedings with liquidation. The classic form of "bankruptcy" - assets are realised, funds are distributed to creditors and the company ceases to exist. This is the final option when reorganisation is not possible.
Bankruptcy proceedings with a bankruptcy plan. Bankruptcy is formally opened, but instead of liquidation, a restructuring plan is implemented within bankruptcy - the company survives, debts are rescheduled and operations continue in a modified form.
The differences at a glance:
| Pre-Bankruptcy Proceedings | Bankruptcy Proceedings (Liquidation) | Bankruptcy Plan | |
| Who remains in charge | Existing management | Bankruptcy administrator | Existing management (with the administrator) |
| Company status | Continues operating | Ceases to exist | Continues operating |
| Assets | Remain in the company | Realised/sold | Remain in the company |
| Debts | Write-off up to 70-80% | Settlement from the bankruptcy estate | Write-off and rescheduling under the plan |
| Jobs | Preserved | Dismissals | Most often preserved |
It is crucial to understand that bankruptcy is not synonymous with the end - but to have real options, you must act on time.
When Do You Need Expert Support in Bankruptcy Proceedings?
Bankruptcy proceedings are not a place for experimentation. Wrong decisions in the first weeks often mean the difference between a preserved company and full liquidation. Our clients most often contact us in one of four typical situations.
You have already received a court summons or notification that proceedings have been initiated. At this stage, a quick legal response is crucial - checking whether the petition is proper, whether the conditions for opening exist, and assessing whether there is room for a pre-bankruptcy solution or a bankruptcy plan. If you do not react within the statutory deadline, you lose the right to defend yourself and the procedure moves toward liquidation. Our text on court practice in pre-bankruptcy proceedings shows how important procedural nuances can be for the final outcome.
Management has a statutory obligation to propose bankruptcy when a bankruptcy ground arises - failure to do so entails personal liability of directors for damage caused to creditors. However, before filing a petition, it is worth checking whether pre-bankruptcy proceedings can be conducted and the company preserved. We do this through a rapid financial analysis and assessment of options.
The bankruptcy plan is the least used, but often one of the most effective options in Croatian practice. Domestic researchers in bankruptcy law point out that restructuring in bankruptcy is rarely implemented in Croatia because of the complex procedure - which means that companies that successfully carry it out often gain a significant competitive advantage. Our team has experience in preparing and implementing bankruptcy plans for multiple clients.
If you recognise yourself in any of these situations, contact us for an initial assessment - we will analyse your position and recommend the best path forward.
Bankruptcy Plan - A Second Chance for Your Company
The bankruptcy plan deserves special attention because it is the only mechanism within opened bankruptcy proceedings through which a company can survive. It is regulated by Chapter VII of the Bankruptcy Act (Articles 213-265) and represents a procedure within bankruptcy in which reorganisation of the debtor is carried out instead of liquidation.
What a bankruptcy plan may include:
- Partial write-off of obligations - creditors agree to write off part of their claims in exchange for more realistic prospects of recovery.
- Rescheduling of obligations - extension of maturity dates adjusted to the real repayment capacity.
- Debt-to-equity conversion - conversion of creditors' claims into business shares, making the creditor a co-owner.
- Merger with another company - integration with an investor or strategic partner within bankruptcy.
- Retention of jobs - a bankruptcy plan most often enables existing employees to continue working.
- Return of assets to the owner - with proper plan implementation, existing owners often retain control of the company.
The bankruptcy plan is submitted by the debtor or the bankruptcy administrator, and creditors vote on it by groups. To be accepted, it must be confirmed by the court and approved by the legally prescribed majority of creditors. More details on practical implementation and legal prerequisites are available in our blog article on the bankruptcy plan as a second chance for companies.
Maneo d.o.o. has participated in the preparation of numerous bankruptcy plans, including plans that enabled clients to exit bankruptcy through sustainable solutions and continue operating.
What Our Service in Bankruptcy Proceedings Includes
Bankruptcy is not a service resolved by a single contract with a lawyer - it is a multidisciplinary process in which law, finance, tax and negotiation skills intersect. Our team covers all of these disciplines under one roof.
Legal management of the procedure. Our specialised attorneys prepare and file all submissions, represent clients at hearings before the commercial court, communicate with the bankruptcy administrator and creditors' committee, and ensure that the procedure proceeds in accordance with the law.
Financial analysis and preparation of the bankruptcy plan. Before any plan is prepared, we conduct an in-depth financial analysis - diagnosing the causes of the crisis, reviewing the asset structure, projecting cash flows and estimating liquidation value. Based on those data, we prepare a bankruptcy plan with a realistic chance of passing the creditor vote. For clients whose primary need is financial restructuring without court proceedings, we also offer out-of-court solutions.
Negotiations with creditors. Negotiations with banks, suppliers, the state (Tax Administration, Croatian Pension Insurance Institute, Croatian Health Insurance Fund) and employees are essential for the success of any plan. Our team has more than 15 years of experience negotiating with key institutional creditors and understands what can realistically be achieved in each situation.
Tax advisory. Debt write-off, asset sale and conversion into equity have tax consequences that can be lawfully optimised with timely advice. Our tax advisers prepare the transaction structure to avoid unnecessary tax burdens.
Support for creditors. For clients who are creditors in other companies' bankruptcy proceedings, we prepare claim registrations, advise on voting on the plan and represent them at hearings and in litigation over disputed claims.
Operational restructuring. Bankruptcy is often opened after years of poor cost and process management. Our consultants assist with operational reorganisation that makes the difference between a plan that looks good on paper and a company that truly recovers.
How Cooperation Works - The Process with the Maneo Team
Every bankruptcy case is different, but the way we work with clients follows six proven steps.
Step 1 — Initial consultation. A meeting (in person or online) where we learn about the company's situation, review balance sheets, creditor lists and account status. This consultation is free and without obligation.
Step 2 — Rapid diagnosis and option assessment. Within a few working days, we prepare a short document assessing the available options - pre-bankruptcy, bankruptcy plan or liquidation - and the indicative financial effects of each. The client receives a clear picture before making a decision.
Step 3 — Strategy and agreement. We agree on the course of action, the scope of our services and the fee. A detailed work plan is prepared with deadlines and responsibilities.
Step 4 — Preparation of documentation. Our team prepares all required documentation - financial statements, business plans, bankruptcy plan, petitions and submissions. The goal is to make the paperwork flawless before it goes to court.
Step 5 — Negotiations and implementation of the procedure. We lead negotiations with creditors, represent the client before the court and coordinate communication with the bankruptcy administrator. The client is informed about every important decision.
Step 6 — Plan implementation and monitoring. After the bankruptcy plan is accepted or a settlement is concluded, we can monitor its implementation if desired - from creditor payments to operational measures within the company. For all arrangements, we remain available after the procedure is completed.
Costs and Duration of Bankruptcy Proceedings
The duration and costs of bankruptcy proceedings cannot be fixed in advance - they depend on the size of the bankruptcy estate, the number of creditors, the complexity of asset relations and whether the procedure is conducted under the regular procedure or as a shortened bankruptcy procedure.
Costs. Total costs of bankruptcy proceedings in Croatia include court fees, bankruptcy administrator fees, expert witness costs, legal advice and administrative costs. For larger procedures, the total amount may reach EUR 100,000 or more - another reason why timely assessment of alternatives such as pre-bankruptcy proceedings or a bankruptcy plan pays off.
Duration. Regular bankruptcy proceedings in Croatia last on average between one and three years, while complex cases can last significantly longer. A shortened bankruptcy procedure - conducted over legal entities without employees and with an uninterrupted blockade of 120 days - ends much faster. We also discuss the broader advantages of pre-bankruptcy proceedings as an alternative to bankruptcy on our blog.
Court framework. Proceedings are conducted by commercial courts, and from autumn 2025 some procedural actions will also take place through a digital platform that accelerates claim registration and communication with creditors.
Details on the procedure itself can be found in the Guide to Bankruptcy Proceedings prepared by the Ministry of Economy and on the website of the Ministry of Justice.
Why Choose Maneo d.o.o. for Bankruptcy Proceedings
In bankruptcy and restructuring, experience is not a marketing phrase - it is the difference between a plan that passes and one that does not. Here is why clients have trusted us in more than 1,000 procedures.
Leader in pre-bankruptcy and restructuring in Croatia. Since 2012, we have participated in more than 70% of all pre-bankruptcy proceedings in the Republic of Croatia - making us the most experienced private team in the country in this field.
94% of settlements concluded. In pre-bankruptcy proceedings we have managed, as many as 94% ended with a settlement - an indicator of the quality of documentation preparation and the team's negotiation capability.
AAA Certificate of Creditworthiness Excellence. Our business has been certified with an AAA credit rating, placing us among the top 5% of companies in Croatia.
Multidisciplinary team of 15 specialists. Under one roof, 15 permanently employed specialists work together - attorneys, economists, auditors, tax advisers and accountants. Clients are not referred to three different offices. An overview of all our services - from pre-bankruptcy and bankruptcy to financial analyses - is available on the Services page.
Internationally recognised expertise. Our founder and director, Saša Rendulić, is a member of INSOL Europe and the Turnaround Management Association (TMA) - leading international organisations in restructuring and bankruptcy. He brings more than 18 years of experience in restructuring large systems, including work in companies within the Agrokor Group.
Discretion and confidentiality. Bankruptcy is a sensitive topic. Our security system and internal protocols ensure that confidential information remains confidential - more information is available on the About Us page.
Frequently Asked Questions about Bankruptcy Proceedings
Timely Action Is Key - Contact Us Today
Bankruptcy is a process in which every week can mean the difference between a preserved company and liquidation. If your company has a blocked account, a threat of enforcement, unpaid salaries or has already received a court summons - do not wait until the options close.
Our initial consultation is free and without obligation. Within a few working days, you will receive a clear assessment of your options and a recommendation for the best course of action.
Phone: +385 1 647 49 90
E-mail: maneo@maneo.hr
Zagreb Office: Ulica Grada Vukovara 269a, Green Gold Tower, 13th floor
Bjelovar Office: Augusta Šenoe 7
Book a free consultation →