Transfers of assets or assumption of obligations free of charge by the debtor, in the context of the avoidance of legal acts of the insolvent debtor

During insolvency proceedings, the insolvency administrator or liquidator is authorized to annul legal acts of the debtor that harm creditors, especially gratuitous transactions. This annulment is not based on fault or the invalidity of the act, but on the debtor's insolvency at the time of the transfer. According to Articles 104-105 of the Insolvency Law, transactions without consideration - such as donations, gifts, or waivers of debt - made within two years before the opening of insolvency proceedings can be revoked if they prejudice creditors. These acts are treated as a special form of revocation rather than traditional nullities. Importantly, the beneficiary must return the asset or its value, even if acting in good faith. Legal doctrine argues that debtors with outstanding liabilities cannot legally engage in gratuitous transfers, as these acts may constitute fraudulent behavior. The insolvency administrator must initiate annulment actions within six months of discovering the grounds, but no later than twelve months from the start of the proceedings. In essence, these provisions aim to safeguard creditor rights and restore the debtor's estate by reversing unjustified transfers.