The Albanian legal system is based on codified principles of civil, criminal and administrative law. Judicialprecedents are taken into consideration by courts, but without having a binding effect, except for unifyingdecisions issued by the Joint Colleges of the Supreme Court.
The Albanian court system is composed of District Courts, Courts of Appeal, Administrative Courts andAppellate Administrative Courts, Courts of Serious Crimes and Appellate Court of Serious Crimes, MilitaryCourts and Appellate Military Courts, and the Supreme Court. There is also a Constitutional Court whoseinfluence is increasing, especially due to an expansion of the "constitutional due process" review of othercourts' decisions.
In each District Court (court of first instance), there are special court departments in charge to decide on:
-disputes related to minors and family; and
Cases in District Courts are heard by a single judge or a panel of three judges. Matters exclusively heardby a panel of three judges include:
-claims valued at more than ALL 20 million (approximately EUR 156,000);
-claims on declaring a person as missing or deceased; and
-claims on removing or limiting the capacity to act of a person.
In the Courts of Appeal, cases are heard by a panel of three judges, while the High Court decides in panelsof five judges. In the Supreme Court, Joint Panels also hear cases with the participation of all judges. TheJoint Colleges of the Supreme Court are responsible for the unification and amendment of court practice.Panel, administrative and civil colleges established at the Supreme Court pre-hear the claims and decidewhether the claim shall be rejected or refer the case for judgement to the panel of three judges.
Decisions of the Supreme Court are proclaimed, along with the reasoning behind the decision, no laterthan 30 days from the date of the termination of the judicial examination. Decisions of the Joint Panels,along with their reasoning, are published in the Periodical Bulletin of the Supreme Court. Decisions thatserve the unification or amendment of court practice are published immediately in the next issue of theOfficial Gazette.
In certain cases, courts may also grant interim measures.
The Albanian court system is rather efficient, despite the fact that no precise time frame is provided for therendering of judgments. The time frame is generally allowed to be reasonably defined by the judges.
Decisions by the first instance courts (i.e., District Courts) may be appealed before the Courts of Appeal.As a general principle, all decisions issued by a court of first instance may be challenged in the Courts ofAppeal, except for those cases when appeal is excluded by law. An appeal request may only be deniedwhen: (a) the appeal is presented after the deadline provided by law; (b) the appeal is made against adecision where an appeal is not permitted; or (c) the appeal is made by an individual that is not legallyentitled to file an appeal.
Upon request of the parties, the Appeals Court may examine facts and other legal aspects examined bythe court of first instance, and may allow the presentation of new evidence in support of the appeal.
After considering the case, the Appeals Court can decide to: (a) uphold and leave in effect the decision ofthe first instance court; (b) change the decision; (c) revoke the decision and terminate the case; or (d)revoke the decision and send the case back to the first instance court for retrial.
Decisions issued by the Court of Appeals are final and may be challenged before the Supreme Court onlywhen: (a) the law has been violated or applied incorrectly; (b) there are grave violations of proceduralnorms (i.e. Article 467 of the Civil Procedure Code); (c) decisive proof or evidence requested by theparties during trial has not been provided; (d) the reasoning of the decision is clearly illogical; or (e) theprovisions on jurisdiction and authority have been violated.
Litigation costs are mainly composed of court and attorneys' fees, expenses for expert opinions andwitnesses (including remuneration for any business days missed), and translation costs. The fees,expenses and remunerations for witnesses and translators are defined by the Council of Ministers.
The court and attorneys' fees awarded to the plaintiff shall be charged to the defendant if the claim has beenaccepted by the court. However, if a party is exempted by the court with respect to the awarding of courtfees, the fees shall be charged to the other party only if the claim has been accepted by the court. Thedefendant shall generally have the right to demand court fees be awarded in proportion to the refused part ofthe claim. The defendant shall have the right to demand court fees be awarded, even if the case is over.
Final decisions of the court can be enforced by obtaining an instrument of immediate enforceability ("IEI").The IEI gives its holder the right to have an enforcement order issued by the District court and to have theexecution carried out immediately by the bailiffs’ office.
The adjudication of administrative disputes is made through independent proceedings by theadministrative courts and within a shorter period of time. The maximum term for administrativeproceedings at the administrative courts of first instance is 60 (sixty) days.
Administrative courts are organised as: (i) Administrative Courts of First Instance which are establishedand function in the same regions as Courts of Appeal; (ii) the Administrative Appellate Court - currentlythere is only one Appellate Administrative Court which is located in Tirana, Albania; and (iii) theAdministrative College of Supreme Court.
Military Courts are composed of Courts of First Instance and a Court of Appeal. Military Courts try militarycases. The Military Court of Appeal is responsible for the second level review of complaints filed againstdecisions of the Military Courts of First Instance. The Military Courts try cases using panels of three judges.
There is also a Constitutional Court, which is not a part of the ordinary court system. It is regulated as anindependent body subject only to constitutional provisions. The Constitutional Court ensures respect for allconstitutional provisions and delivers final interpretations of these provisions.
According to the Code of Civil Procedure, all disputes (civil or other nature as prescribed by this code andother applicable laws) fall under the jurisdiction of the Albanian Courts. When a civil dispute is in theprocess of being heard by the Albanian courts, no other body is allowed to hear the matter. In this respect,any agreement that provides differently is deemed invalid.
Submission to the competence of a foreign court shall only be allowed when the trial is related toobligations between two foreign citizens or one foreign citizen and an Albanian citizen, or any foreigncitizen that does not live/reside in Albania, as well as when such exemptions have been provided for ininternational agreements ratified by the Republic of Albania.
In Albania, the Court does not interrupt or suspend its judgment over a dispute, if the dispute, or someother matter related to the dispute, is the subject of examination of a foreign court.
The Criminal Code of the Republic of Albania covers criminal acts such as fraud by individuals or legalentities, money laundering, both active and passive bribery in the public and private sectors and undueinfluence of public officials.
The Law on the Prevention and Combating of Organized Crime adopted in September 2004 provides thelegal basis for combating economic crimes performed by organized criminal groups.
Law No. 9754, dated 14 June 2007 "On the criminal liability of legal entities" provides for the criminalliability of legal entities established in the Republic of Albania. The Law is applicable to all legal entities i.e.to companies that have been established and which operate pursuant to Albanian law but also to localadministrative entities, public legal entities, political parties and trade unions.
Pursuant to this law, a legal entity can be held criminally liable for any offence committed in its name or forits benefit: (a) by its managing body or legal representatives; (b) by a person who is under the authority ofthe person who runs, represents and administers the legal entity; or (c) due to a lack of control orsurveillance by the person that runs, represents and administers the legal entity.
The judicial process in a criminal case differs from a civil case. The prosecutor represents the state inmost court proceedings, including all criminal prosecutions. The main principle governing the Albanianjudiciary system is a fair trial with defendants presumed innocent until proven guilty.
A criminal proceeding is initiated upon the request of a prosecutor, police department or by individualsalleging violations of their rights or that have incurred damages. In the latter case, the allegation issubmitted to the Prosecution Office or Serious Crimes Prosecution Office and the prosecutor then decideswhether to file charges and, if so, what charges to file. The charges are filed with the District Court in thesection for criminal cases or with the Court of Serious Crimes. The prosecutor may issue investigationorders or warrants which in any case should be examined by the court that has the authority to uphold orchange such order/warrant.
The police are responsible for investigating allegations of business crime. If they find sufficient evidence ofa crime, then an arrest is made. However, it is up to the court to finally decide on the final warrant.Otherwise, the police should submit a report on their findings to the prosecution office and then theprosecutor issues the warrant. This report constitutes a summary of all the events that have preceded thearrest and provides witness names and other relevant information. The report is handed over to theprosecutor.
Most criminal charges involving business crime are judged by the District Court of Serious Crimes locatedin Tirana. Other criminal charges are judged by the criminal first instance courts. The courts of firstinstance are organized and operate on a judicial district basis.
The defendant has the right to access all evidence that the prosecutor presents to the judges, mayquestion opposing witnesses, and present its own witnesses and evidence.
Anyone accused of a crime is legally presumed to be innocent until proven guilty by a final court decision.This means that it is the prosecutor who has to convince the court that the defendant is guilty and mustprovide proof of guilt.
Cases on business crime in the First District Court of Serious Crimes in Tirana are heard by a panel ofthree judges. Its decisions may be appealed to the Court of Appeal of Serious Crimes located in Tirana.Appeals are decided by panels of three judges working together.
The Albanian legal system does not explicitly provide for the re-examination of criminal cases, includingreopening domestic proceedings, in the event of the court finding a serious violation of an applicant's rightto a fair trial. According to the provisions of Article 450 of the Albanian Criminal Code, a request for reviewof a final judgment may be entertained only when:
-the facts of the grounds of the sentence are contradictory to those of another final sentence;
-the sentence relies upon another civil court decision, which has since been revoked;
-after the sentence new evidence has appeared or has been found, which solely or together with theevidence already evaluated, proves that the accused is guilty; or
-it is proved that the sentence has been rendered as a result of the falsification of facts during the trial ordue to another act which is by law a criminal offence.
The prosecutor should decide whether to bring the case to court, to dismiss the charges or to suspend thecase within 3 (three) months from the date of the notification to the accused of the criminal chargesagainst him/her.
The prosecutor may prolong the period of investigation by a further 3 (three) months. In complex cases,the prosecutor may extend the investigation period to 2 (two) years and upon the expressed writtenconsent of the Attorney General the investigation may be extended to up to 3 (three) years.
However, in most cases the period between the submission of the claim and the indictment beingsubmitted to the court takes approximately 12 (twelve) months.
The period between the indictment and a sentence in the first instance is approximately 12 (twelve)months.
Litigation costs are mainly composed of court and attorneys' fees, expenses for expert opinions andwitnesses (including remuneration for any business days missed), and translation costs. However, freelegal defence is provided for criminal cases. The fees, expenses and remunerations for witnesses andtranslators are defined by the Council of Ministers.
Insolvency proceedings in Albania aim to provide an economic and financial solution to a debtor by meansof a judicial procedure for the repayment of debts. Two kinds of insolvency proceedings exist:
-Bankruptcy Proceedings (Procedura e falimentimit me likuidim) which generally aim to satisfy thecreditors' claims by liquidating the assets of the debtor and distributing the proceeds; and
-Judicial Reorganization Proceedings (Plani i riogranizimit), the ultimate aim of which is to preserve andcontinue the debtor’s business on the basis of a reorganization plan.
Bankruptcy Proceedings are initiated by the competent court upon an application either by the debtor or byone or more of its creditors.
The business organization plan aims to create appropriate conditions for the organization and continuity ofthe debtor's business. This plan may provide for the sale of the whole or a part of the business activity, orother appropriate solutions.
The competent court for all forms of bankruptcy proceedings is the District Court where the debtor isresident or where the entity has its legal seat. Bankruptcy proceedings must be timely instituted as soonas the debtor is incapable of meeting its financial obligations. In the case of legal entities, bankruptcyproceedings must be opened even if the entity is over-indebted. In addition, the tax authorities may file apetition for the opening of bankruptcy proceedings if a corporate taxpayer’s balance sheet shows lossesfor a period of 3 (three) consecutive years. The court must decide within 30 (thirty) days of filing.
The decision of the court to initiate Bankruptcy Proceedings is entered into the Registry of ImmovableProperty and is delivered to the debtor and to all of its known creditors and debtors. Without a mutualagreement, insolvency proceedings concluded outside the territory of the Republic of Albania shall applyto a debtor's property located inside the territory of the Republic of Albania only if:
-the insolvency proceedings are not contrary to Albanian legislation; and
-the insolvency proceedings do not affect the principles of Albanian legislation, especially the provisionsof the Albanian Constitution.
The duration of bankruptcy proceedings will depend on several different factors (e.g. the extent of theassets and liabilities of the debtor, the number of creditors, whether the receiver challenges anytransactions of the debtor in court, etc.). Although there is no general rule, in our experience bankruptcyproceedings may last between 12 (twelve) months to 9 (nine) years in more complex cases.
Arbitration in the Republic of Albania is governed by Part II, Title IV, Articles 400 – 439 of the AlbanianCode of Civil Procedure. The chapter contains provisions for the regulation of domestic arbitrationproceedings, i.e., when all parties are resident in or have the legal seats of their companies within theterritory of the Republic of Albania, and when the seat of arbitration is within this territory. The chapterdoes not apply to international arbitration proceedings. A draft arbitration law containing provisions forinternational arbitration proceedings, which is based on the UNCITRAL Model Law and sponsored by theWorld Bank is still being discussed. Albania currently does not have any domestic arbitral institution.
Generally, an arbitration agreement may be concluded for any monetary claim or dispute arising from acommercial transaction. Public law disputes, such as criminal law cases and family matters, includingdivorce, alimony or paternity disputes, are not arbitrable. An arbitration clause is deemed valid if it is madein writing and is included in the main agreement as part of this agreement, or in a separate agreementreferring back to the main agreement. Although the Code of Civil Procedure does not contain explicitcontent requirements, the clause should specify that any disputes between the parties will be settled bymeans of arbitration. In addition, the arbitration clause should indicate the parties to the agreement, thescope of the agreement, the arbitral institution or the basis for forming the arbitral tribunal (in case of adhoc arbitration).
The parties are free to decide on most aspects of the arbitration proceedings, including the seat ofarbitration, the language of arbitration, the substantive law and the procedural rules. The parties are alsofree to decide on the number of arbitrators, although there may only be an uneven number, and themethod of their appointment. Arbitrators are appointed by the court if the parties fail to do so.
The arbitral tribunal may, at the request of one of the parties and unless agreed otherwise, order anymeasure to preserve the interests of the parties in the arbitration. If the parties have not agreed on anyrules on this matter, the arbitral tribunal must apply the rules on interim measure that exist in the context ofa lawsuit in the court system (Article 418 CPC). Interim measures granted by arbitral tribunals must alwaysbe enforced by state courts. The following rules apply:
-at the request of the claimant the arbitral tribunal may grant interim measures to secure the execution ofthe final award in the arbitration proceedings, if there are reasons to believe that the proper execution ofan award in favour of the claimant may become impossible or difficult (Article 202 CPC); and
-a claimant may also request the court to stay the execution of an administrative act (i.e., a decision byministers or other acts issued by the state administration as provided by the CPC in the section onadministrative disputes) (Article 329 CPC). The arbitral tribunal may grant such stay if there is a risk ofgrave and irreparable harm to the claimant. The arbitral tribunal must provide reasoning for its decision.
Such interim measures are allowed for all kinds of claims and at any stage of the arbitration proceedings,until the decision becomes final and irrevocable. Interim measures preserving rights are also allowed inproceedings before the Court of Appeal, if the award is under its consideration (Article 203 CPC).
The claimant may also request interim measures to preserve its rights in the arbitration even before bringingthe claim before an arbitral tribunal. In such a case, the court determines a time period of not more than 15(fifteen) days within which a request for arbitration must be submitted (Article 204 CPC). If the claimant doesnot submit a request for arbitration for a claim regarding which a security measure has previously beengranted by a court within the relevant time period, the security measure is considered revoked.
If the arbitral tribunal rejects the claim or if the arbitration proceedings are stayed, the arbitral tribunal mustalso decide on the lifting of the interim measure, which will in any case take effect when the decision toreject the claim or to stay the proceedings becomes final and irrevocable (Article 211 CPC).
Arbitral awards are enforceable in the same way as court decisions. The courts may set aside arbitralawards only under a few conditions, in particular in case of:
-the invalid constitution of the arbitral tribunal;
-an incorrect declaration of the arbitral tribunal of its jurisdiction or lack of jurisdiction;
-the arbitral tribunal has exceeded the scope of the arbitration agreement or has not decided on one ormore claims submitted to it;
-the equality of the parties and their right to be heard has not been respected;
-the lack of impartiality and independence of one or more arbitrators; or
-an infringement of Albanian public order.
Albania is not a party to any multilateral conventions on jurisdiction and enforcement of foreign judgments.In the absence of bilateral or multilateral jurisdiction and enforcement of foreign judgments agreements,the provisions of the Code of Civil Procedure apply.
As a general principle, foreign judgments are recognizable and applicable in the Republic of Albania inaccordance with the rules provided by the Code of Civil Procedure.
Where the Republic of Albania has entered into a special treaty with a foreign state, the treaty applies.
The foreign judgment is enforceable after its recognition by a decision of the Appeals Court.
A foreign judgment shall not be enforced in the Republic of Albania when:
-according to mandatory provisions, the dispute is subject to the judgment of the Albanian court and notof a foreign court;
-there are procedural violations of the defendant's right to a fair trial and right to be heard;
-the Albanian court has given a different judgment on the same dispute, between the same parties, forthe same cause;
-the same dispute is under examination before an Albanian court;
-the foreign judgment became irrevocable in violation of the legislation on which it is based; or
-it is in violation of the fundamental principles of the Albanian legislation (public order).
Regarding the enforcement of foreign awards, Albania is a party to the 1958 New York Convention on theRecognition and Enforcement of Foreign Arbitral Awards, with the reservation that the Convention will onlybe applied to the recognition and enforcement of awards made in the territory of another contracting state.
Albania is also a party to the European Convention of 1961 on International Commercial Arbitration.
The Albanian Code of Civil Procedure does notprovide for a special proceeding for collectiveredress.
The filing fee of a claim in the First Instance Courtis EUR 25 up to EUR 120. In complex cases,court fees may be up to 1% of the contractualamount in dispute. Such court fees are to be paidupon filing of the claim.
Assumptions based on an amount in disputeof EUR 1,000,000:first instance: preparation oftwo briefs, four hearings with a duration of 1h, 2h,4h, and 6h, respectively, preparation ofhearings/meetings with client, witnesses,correspondence with client: In total EUR 15,000to 25,000; second instance: one brief, no hearing:EUR 5,000 to 10,000; Third instance: one brief,no hearing: EUR 5,000 to 7,000.
Assumptions based on an amount in disputeof EUR 10,000,000:first instance: preparation of4 comprehensive briefs, six hearings with aduration of 2h, 4h, and 4 x 8h; preparation ofhearings/meetings with client, witnesses,correspondence with client: In total EUR 50,000to 150,000; second instance: one brief, nohearing: EUR 15,000 to 25,000; third instance:one brief, no hearing: EUR 10,000 to 20,000.
Documents are subject to disclosure if the partyitself referred to the document during theproceeding.
Pro Bono System
Simple cases:first instance: 6 months up to 1year from the date of the filing of the claim; secondinstance: 12 months from the date of filing theappeal claim; third instance: 16-24 months fromthe date of filing the request.
Complex cases:first instance: 2 years from thedate of filing of the claim; second instance: 12-16months from the date of filing the appeal claim;third instance: 24 months from the date of filing therequest.
Cases before the District Courts are heard by asingle judge or a panel of three judges. Casesheard by a panel of three judges include: (i)claims valued at more than ALL 20 million(approximately EUR 156,000); and (ii) claimsobjecting to administrative acts valued at morethan ALL 20 million (approximately EUR156,000).
There are no civil jury trials in Albania.
Yes. Each court has a list of attorneys who provide free legal aid in criminal cases for people who can'tafford the cost of legal proceedings. In other cases i.e. civil, administrative or social cases, non-profitorganisations may provide free legal aid to certain groups of people who are unable to afford legalrepresentation and access to the court system.
-Litigation costs consist of court andattorneys' fees and expenses for expertopinions, witnesses, and translators. TheCouncil of Ministers determines theappropriate expenses for witnesses andtranslators. The court and attorneys' feesincurred by the prevailing party may becharged to the losing party in proportion towhat the court accepted in the claim.
-Court fees in the first and second instancesare to be paid by the party filing the appeal.
-Litigation costs are awarded against thelosing party who must reimburse the winningparty.
-If a claimant has been partially successful,the costs of both sides are divided on a pro-rata basis. However, each party assumes thereimbursement of the respective attorneys'fees.
STANDARD CIVIL PROCEEDINGS
-The procedural expenses are
pre-paid by the state, except for thoserelated to acts requested by the parties.
-When the defendant does not have sufficientmeans, the defence expenses shall becovered by the state.
The defendant has the right to present his/her own defence or to be assisted by defence counsel.
The procedural expenses include the costsrelated to examinations, expertise, notifications,lawyers' fees and any other expenses that havebeen duly documented.
The maximum fees that may be applied bylawyers for both civil and criminal cases aredefined by a joint order of the Ministry of Justiceand National Chamber of Advocates.
In the final decision of the court, the judge definesthe party that has the obligation to pay theprocedural expenses. The bailiff office undertakesall the required steps to enforce the final decisionof the court.
Every person deprived of her/his liberty should bebrought before a court within 48 hours after thearrest. The pre-trial detention period cannot bemore than half of the maximum punishmentprovided for the alleged crime. In any case, thepre-trial detention may not be more than 3 years.
Pro Bono System
Documents are disclosed to each of the parties in a criminal proceeding.
The period between indictment and sentence infirst instance is approximately 9 months.
The period between first instance
court and appellate court sentence isapproximately 6 months.
Defendants that are detained on remand aretreated with priority.
Yes. Each court has a list of attorneys who provide free legal aid for people who can't afford the cost oflegal proceedings.
There are no civil jury trials in Albania.
-The court may order the applicant to pay asecurity deposit. In practice, it is advisable tooffer a security deposit if the demonstrationof the claim faces challenges.
-No litigation costs will be awarded to theapplicant in preliminary injunctionproceedings.
-Costs incurred by a successful applicant in apreliminary injunction matter can only besought in the main proceedings.
Preliminary Injunction Proceedings
If the request for preliminary injunction is appliedfor together with the original complaint, no extracourt fees have to be paid. Otherwise, the regularcourt fees apply.
Hourly fees or a fixed fee and success fee may beagreed upon between the attorney and the client.
-With the request for a preliminary injunction, theapplicant must provide available evidence, suchas documentary evidence and affidavits thatcan be examined immediately by the court.Foreign-language documents should bepresented with Albanian translations.
-Witnesses should be readily available so thatthey can appear on short notice before the court.
Generally, a decision on a request for
a preliminary injunction is rendered within 15days after the filing of the claim. However, if therequest is submitted during legal proceedings,
the decision is rendered immediately after thefiling of the request by the applicant.
Appellate proceedings: In general, 1 month fromthe date of filing the applicant’s request.
The procedural costs depend on whether a solearbitrator or an arbitral tribunal of three membersis appointed, the complexity of the case, and theadministrative charges.
Hourly fees or a fixed fee and success fee maybe agreed upon between the attorney and theclient.
-The costs of arbitration depend on thearbitration agreement and the amount indispute, the amount of documents, numberof witnesses, and whether expert opinionsare required. The costs of arbitration alsoinclude the fees of arbitrators andadministrative charges.
-The arbitrators have large discretionregarding the award of costs. The award oflegal fees is usually not determined byreference to a statutory tariff.
-Currently there are no arbitration courts inAlbania.
-The party seeking to enforce the foreignjudgment must present an application, anotarized power of attorney for the attorneyretained for the enforcement procedure, anda duly certified copy of the foreign courtdecision. All documents must be translatedinto Albanian and certified by a notary.
-For enforcement of awards under the NewYork Convention, the creditor must providethe court with the authenticated originalaward or a duly certified copy thereof, andthe original of the arbitration agreement or aduly certified copy thereof.
Court fees range from EUR 25 up to 1% of thecontractual amount in dispute.
Hourly fees or a fixed fee and success fee may beagreed upon between the attorney and the client.
Enforcement of Foreign Judgments and Arbitral Awards
The law does not set forth any specific time limits.However, in practice, the duration of the processto enforce foreign judgments takes between
The enforcement of arbitral awards variesdepending on a series of factors including theidentification of the debtors’ assets, financialmeans, the response of the debtor, and theperseverance of the enforcement authorities inthe fulfilment of their duties.
Albanian Insolvency Law requires the courts tohandle bankruptcy cases without delay. Theymust consider the case within 30 days from thedate of filing the petition for insolvency.
The duration of bankruptcy proceedings willdepend on several factors (e.g. the extent of theassets and liabilities of the debtor, the number ofcreditors, whether the receiver challenges anytransactions of the debtor in court, etc.). Althoughthere is no general rule, in our experiencebankruptcy proceedings may last between 12months to nine years in more complex cases.
The amount of court fees is approximately EUR25, however, the costs of the proceedings mayalso include compensation for and expensesincurred by the insolvency administrator andmembers of the creditors' committee.
Hourly fees or a fixed fee and success fee may beagreed upon between the attorney and the client.
-The court decides to open the insolvencyproceeding after being satisfied that there issufficient legal ground for opening suchproceeding, and the debtor’s assets areestimated to be sufficient to cover the costs ofthe insolvency proceedings. In making such anassessment, the court may rely on the report ofan interim insolvency administrator appointed bythe court for such purpose.
-The decision of the court is published on theDistrict Court website, delivered to the insolventdebtor and to the known debtor’s creditors, andis filed with the National Centre for Registration,the authority in charge of the administration ofthe Commercial Register.
-The decision of the court to initiate BankruptcyProceedings is entered into the Registry ofImmovable Property.
-The court appoints a receiver (administartori ifalimentimit) who assumes control over thedebtor’s assets.
-The decision on the limitation of theadministrative body’s powers and theappointment of the receiver is published.
-The list of the debtor’s assets and the list ofcreditors list must be filed with the District Court.The Commercial Section of the Courtsupervises the receiver.
-The receiver must obtain the creditors’ approvalfor the implementation of actions of particularimportance for the bankruptcy proceedings.
-The assets of the insolvent debtor areconfiscated and liquidated (i.e., sold in publicauction) by a bailiff. The liquidation proceedsare distributed to the company’s creditors inaccordance with the priority principles set out inthe Bankruptcy Act.
In practice, not many bankruptcy proceedingshave been brought before the Albanian courts.Only recently, statistics show an increase in thenumber of such proceedings. The informationprovided here is based on our experience withthe Albanian court system and the InsolvencyLaw.