One Month To File For Bankruptcy - When Does It Start?

Considering that both criminal and civil sanctions apply to the board of directors or managers of a Luxembourg commercial company for failure to declare bankruptcy in proper time, it is essential to determine exactly when the requirements for bankruptcy are met.

This question is of particular importance considering further that the provisions of the Luxembourg Commercial Code may seem confusing when read literally and in isolation as to whether the period commences from the date of cessation of payments (cessation des paiements) alone, or the date of both the cessation of payments (cessation des paiements) and loss of creditworthiness (ébranlement du crédit) (i.e., the cumulative criteria for bankruptcy).