The Insolvency Control Service has received 109 complaints about the actions of insolvency administrators in six months – Sectors – Financenet

Currently, 71 complaints have been dealt with and infringements have been detected in almost 30% of cases.

The Service pointed out that in 23 cases the administrator had violated the requirements of regulatory enactments, and more often the violations found within the complaints are related to non-evaluation of the debtor’s transactions and failure to provide information to the persons involved in the process.

The service also pointed out that creditors are actively exercising their right to appeal to the MKD about the actions of insolvency process administrators. Despite the fact that the number of complaints about the conduct of insolvency practitioners had decreased during the Covid-19 emergency, there is now an increase in the number of complaints.

The SCD noted that planned monitoring identifies risk factors and intensifies monitoring of those administrators who fall into the high-risk category, indicating that on-site visits are the most effective method of verification.

It has already been reported that this year, the MKD has detected serious violations in 45% of cases by conducting on-site inspections at the practice sites of insolvency process administrators and persons supervising the legal protection process.

However, the Latvian Association of Certified Insolvency Administrators does not understand how MKD obtained such statistical data, therefore it decided to contact MKD and ask to inform in detail all insolvency process administrators about publicly distributed, in its opinion, unclear violation statistics and supporting data.

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