The role of the bankruptcy court in the reorganization process

The bankruptcy proceedings is a judicial process which can, by its nature, be exclusively in a jurisdiction of the court and not in the administrative jurisdiction. For conducting such a proceedings, the legal authority has only been given to the commercial court within its territorial jurisdiction. It should be emphasized that the legal authority is exclusively given to domestic courts and regarding to this fact, none foreign court can conduct either the bankruptcy proceedings or the reorganization proceedings over the subject being situated in a domestic country. The most important normative acts regulating the nature of this matter are the Bankruptcy Law and Bankruptcy proceedings Law of Republic of Serbia. The Bankruptcy Law began to be applied on 23rd January 2010. The most important innovation of this law represents a previously prepared plan of reorganization. The reorganization plan being adopted and approved by a bankruptcy judge has the enforcement power and it also represents a new contract for the settlement of the claims referred to therein.