Consequences of an unauthorized disposal of third party creditor assets pursuant to the bankruptcy law

In the case of an unauthorized disposal of third party creditor assets, the third party creditor's rights are transformed into the right of obligation - the right to compensation. If particular assets were disposed of after the initiation of a bankruptcy proceedings or during a preliminary bankruptcy proceedings, after a provisional trustee had taken office, the compensation being equal to the market value of assets shall form a part of bankruptcy assets and shall be settled with priority before the payment of the other creditors' claims. However, if the assets were disposed of prior to previously mentioned phases of a bankruptcy proceedings, a third party creditor may require to delegate to him the right to counter-action if it had not been effectuated, and if it had, the third party creditor has the right to compensation as an unsecured creditor from the third payment class, and his claim shall be settled by the application of a principle of proportional settlement, as a fundamental principle of a bankruptcy proceedings.