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Decree Law No. 53/2004


Publication: Republic Diary No. 66/2004, Series I of 2004-03-18
  • Issuer: Ministry of Justice
  • Diploma Type: Decree Law
  • Number: 53/2004
  • Pages: 1402 - 1465

Summary in plain english

What is it?

This decree-law approves the Company Insolvency and Recovery Code (Código da Insolvência e Recuperação de Empresas - CIRE).

What is going to change?

The CIRE covers areas such as:

    • Personal insolvency;
    • Insolvency of undertakings;
    • Recovery and revitalisation of natural persons through a special procedure leading to a payment agreement (processo especial para acordo de pagamento - PEAP);
    • Recovery and revitalisation of companies through a special revitalisation procedure (processo especial de revitalização - PER).

Insolvency means being unable to fulfil its obligations, such incapacity being verified at a certain time by a declaration of insolvency. The purpose is to use the existing insolvent capital to pay creditors.

The insolvent capital covers the entire assets of the debtor onThis decree-law entered into force on 14 September 2004. the date when the insolvency was declared, as well as the assets and rights acquired throughout the process.

What advantages does it bring?

The purpose of this Decree-Law is, through an insolvency plan, the liquidation of the assets of an insolvent debtor and the distribution of the proceeds obtained by the creditors, or their satisfaction, or the recovery of the company.

When does it enter into force?

This decree-law entered into force on 14 September 2004.

Original Version

LEGAL TRANSLATOR

  • Legal translator is the translation of texts within the field of law

CONSOLIDATED LEGISLATION

Legislative consolidation integrates the various amendments and rectifications made into an original legal diploma in order to make its consultation more accessible to the citizen.