International Scientific Journals
of Scientific Technical Union of Mechanical Engineering "Industry 4.0"

Bankruptcy procedures are complex and often slow, requiring extensive documentation, strict deadlines, multiple creditors, significant human resources, and numerous judicial decisions In Albania, these procedures remain predominantly manual; therefore, the use of Artificial Intelligence opens new opportunities to enhance efficiency and transparency in these procedures. The main benefits include reducing the duration and improving the effectiveness of actions, increasing the accuracy and reliability of the process, and generating useful statistics for the formulation of public policies. Nevertheless, challenges remain related to the adoption of an appropriate legal framework, the protection of sensitive data, the transparency of algorithms, and the determination of legal responsibility. AI has the potential to transform bankruptcy procedures in Albania, but it requires a cautious approach that balances technological innovation with the protection of the legal rights of the parties involved. In this regard, harmonization of legislation with European Union standards and its proper implementation represent the most critical issues in this domain.

This paper examines the legal framework governing bankruptcy proceedings under Albanian legislation, focusing on the debtor’s status and procedural rights in initiating insolvency procedures. It distinguishes between current insolvency, where financial incapacity is evident, and prospective insolvency, where the debtor’s inability to meet obligations is reasonably foreseeable. The study analyzes the debtor’s petition for the commencement of bankruptcy proceedings, supported by the submission of financial documentation required to substantiate insolvency claims. Particular attention is given to the debtor’s request for reorganization and the submission of a reorganization plan as a mechanism for preserving economic value and improving creditor recovery through structured financial rehabilitation. In addition, the paper explores the integration of Artificial Intelligence (AI) as a decision-support tool in assessing insolvency risk and evaluating the feasibility of reorganization plans through predictive financial analysis. The findings highlight the role of bankruptcy law in ensuring legal certainty while promoting efficient and sustainable corporate restructuring processes.