Insolvency procedure may be general or simplified.
The general procedure is the insolvency procedure whereby a debtor, who meets the conditions provided by law, enters, after the observation period, successively, in the judicial reorganization procedure and in the bankruptcy procedure or, separately, only in judicial reorganization, or only in bankruptcy procedure.
Simplified procedure is the insolvency procedure whereby the debtor, who meets the conditions provided by law, enters directly into bankruptcy procedure, either with the opening of insolvency procedure, or after a maximum observation period of 20 days.
The observation period shall be the period between the date of opening of insolvency procedure and the date of confirmation of the reorganisation plan or, where applicable, of bankruptcy.
Judicial reorganization is the procedure that applies to the debtor in insolvency, a legal entity, in order to pay his debts, according to the schedule of payment of claims. The reorganization procedure involves the preparation, approval, confirmation, implementation and compliance with a plan, called a reorganization plan.
Bankruptcy procedure is the insolvency procedure, competitive, collective and egalitarian, which apply to the debtor in order to liquidate his property in order to cover the liability, followed by the removal of the debtor from the register in which he is registered.
The bodies applying the insolvency procedure are: courts, syndic judge, judicial administrator and judicial liquidator – insolvency practitioners.