Liquidation in Bankruptcy Law and Ordinary Liquidation

The satisfaction of creditors constitutes the core objective of Law No. 110/2016 “On Bankruptcy.” Liquidation represents the procedural phase in which this objective is effectively implemented when the reorganization of the debtor proves impossible. However, liquidation as a legal concept extends beyond bankruptcy proceedings and also encompasses the ordinary dissolution and termination of legal persons under conditions of solvency. This paper aims to analyze the essential differences between ordinary liquidation and liquidation within bankruptcy proceedings, with particular emphasis on the legal framework, institutional mechanisms, and economic implications of each process. Furthermore, the study compares the collective satisfaction of creditors in bankruptcy proceedings with individual satisfaction through enforcement (bailiff) procedures, highlighting the advantages and limitations of each mechanism. The analysis demonstrates that bankruptcy liquidation provides a more structured and equitable framework for collective creditor satisfaction while ensuring legal certainty and economic balance.