Paulian Acts

If a bankruptcy has been declared, the bankruptcy trustee will investigate remarkable legal acts performed in the run-up to the bankruptcy. Equality of creditors One of the basic principles of bankruptcy law is that creditors are treated equally. This is usually referred to by the Latin term “paritas creditorum”: equality of creditors. The only exception to this is that the law assigns a different ranking to creditors when paying out the proceeds of the bankruptcy. [...]