Judgment No. 17962 of 2024: Prededuction and Preventive Arrangement

The recent ruling No. 17962 of 01/07/2024, issued by the Court of Cassation, provides important clarifications regarding the recognition of the prededuction of professional credits in the context of preventive arrangements and subsequent bankruptcy. This decision emphasizes how the failure to be admitted to the preventive arrangement procedure can impact the ability to recognize credits as predeductible.

The Context of the Ruling

The case in question concerns the professional M. F., who had provided services to the debtor in anticipation of entering the preventive arrangement procedure. However, following the withdrawal of the application for the arrangement, the debtor was declared bankrupt. The central issue of the dispute is whether the professional's credit could be considered predeductible in the context of the subsequent bankruptcy.

Preventive arrangement - Professional credit - Failure to be admitted to the arrangement - Recognition of prededuction in the subsequent bankruptcy - Exclusion - Reasons - Case law. In terms of preventive arrangement, the credit of the professional appointed by the debtor for access to the procedure cannot be considered predeductible in the subsequent and consecutive bankruptcy, if there has been no admission to the minor procedure, as this circumstance eliminates the functional link between the professional services rendered and the objectives of the alternative procedure to bankruptcy, which constitutes the prerequisite for the recognition of predeductibility. (Case law regarding the withdrawal of the application for the arrangement followed by the declaration of bankruptcy).

Analysis of the Ruling

The ruling highlights that in order for a credit to be considered predeductible, there must be a functional connection between the professional services and the goal of avoiding bankruptcy. In this specific case, the Court determined that the failure to be admitted to the preventive arrangement interrupted this connection, thus excluding the prededuction of the credit.

Practical Implications

This decision has several practical implications, including:

  • The necessity for professionals to ensure that their work is formally linked to a valid preventive arrangement procedure.
  • Reflections on contractual agreements with debtors, which should clarify the payment conditions and any potential insolvency procedures.
  • The importance of legal advice before undertaking actions that may lead to insolvency procedures.

Conclusions

Judgment No. 17962 of 2024 represents an important guide for professionals operating in the field of bankruptcy law. It clarifies that admission to the preventive arrangement is a fundamental step for the recognition of the prededuction of professional credits. In an ever-evolving economic context, it is essential that professionals are informed and prepared to face such situations, both to protect their own rights and to ensure proper assistance to debtors.

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