After the Austro-Hungarian Compromise, the Hungarian economy developed quickly, and the Hungarian political elite sought ways to help it grow with a new, up-to-date regulation. To that end, the National Assembly adopted a new commercial code in 1875, a new promissory note act in 1876 and a new bankruptcy act in 1881. In this paper, I examine the liability of bankruptcy trustees on the basis of leading cases of the Hungarian Supreme Court whose decisions determined the Hungarian legal practice. It is an interesting part of Act XVII of 1881 because it has a close connection to the general private law. Since bankruptcy trustees were responsible for determining the amount of bankruptcy assets, the issue of creditor control of the trustee’s activity was important. In addition, the provision of the Hungarian bankruptcy act concerning the bankruptcy trustee’s liability was the same as the German Bankruptcy Act of 1877, thus creating a good opportunity to compare the German and Hungarian viewpoints in this question.
The First World War and the Trianon Treaty shocked the Hungarian economy. The Hungarian government implemented a payment moratorium from the start of the war, but after a one-year long moratorium, the government wanted to restore the working of the economy. But it desired to avoid the massive bankruptcies of the firms; therefore, a new institution, the compulsory non-bankruptcy settlement was introduced by the government in Hungary for helping the debtors. In my paper, I examine the rearrangement of the insolvency law in the interwar period which was generated by the compulsory non-bankruptcy settlement. This appeared beside the bankruptcy procedure, which regulation was passed by the National Assembly in 1881. It was the second Hungarian bankruptcy act, which remained unchanged until socialism. These two procedures were the significant elements of the insolvency law in the examined period. In my paper, I present the circumstances of the new institution’s introduction, its modification and its relation to the bankruptcy procedure.
JavaScript is turned off in your web browser. Turn it on to take full advantage of this site, then refresh the page.