The state agency Insolvency Administration is a public institution that was established in 2002 in accordance with the Public Agencies Law, Law On Protection of Employees in Case of Insolvency of Employer, Law On Insolvency of Undertakings and Companies, and operates under the supervision of the Ministry of Justice.

The activities of the Insolvency Administration are aimed at implementing the state policy in the sphere of insolvency proceedings, protecting the interests of employees in the event of insolvency of their employer, and safeguarding the interests of the state and those of the general public in insolvency matters in the manner set forth by law.

Functions of the Insolvency Administration:

• training of administrators;
• certification of administrators;
• recommendation of administrators to a court;
• supervision of the activities of administrators in insolvency proceedings (including settlement, restoration and bankruptcy proceedings);
• management of the Employee Claims Guarantee Fund in accordance with the Law On Protection of Employees in Case of Insolvency of Employer;
• satisfaction of claims of employees from the Employee Claims Guarantee Fund in accordance with the Law On Protection of Employees in Case of Insolvency of Employer;
• representation of the interests of the state in insolvency proceedings;
• performance of other functions that are entrusted to the Insolvency Administration by virtue of regulatory enactments.

The Insolvency Administration fulfils its functions by:

• elaborating training programmes for administrators;
• organising training of those persons who wish to obtain an administrator’s certificate;
• organising examinations for obtaining the administrator’s certificate in accordance with the procedures specified by regulatory enactments;
• issuing and annulment administrator certificates or extending of the certificates in accordance with the procedures specified by regulatory enactments;
• randomly selecting and recommending of the candidate to a court for each specific insolvency proceedings;
• reviewing the legality of activities of administrators in insolvency proceedings;
• examining complaints regarding the activities and actions of administrators;
• satisfaction of claims of the employees from Employee Claims Guarantee Fund;
• reimbursement of costs incurred in administering the insolvency proceedings of asset less companies;
• exercising creditor’s rights against insolvent undertakings and companies for the amounts of employee claims and expenses defrayed in relation to administering the insolvency proceedings;
• maintaining a database of administrators and insolvent debtors (e.g. companies, undertakings and merchants) in insolvency proceedings and ensuring public availability of administrators data;
• summarizing and submitting proposals for improvement of regulatory enactments in the domain of insolvency proceedings;
• organizing and publishing of methodical and informative materials on matters of insolvency proceedings;
• ensuring an exchange of information in the domain of the agency’s activities in cooperation with foreign and international institutions.