Best Bankruptcy & Debt Lawyers in Panama

About Bankruptcy & Debt Law in Panama

Bankruptcy & Debt law in Panama is governed by the Insolvency and Reorganization Law of 2016. This law provides a legal framework for individuals and businesses facing financial difficulties to restructure their debts and seek relief from creditors.

Why You May Need a Lawyer

There are several situations where you may need a lawyer specializing in Bankruptcy & Debt in Panama. Some common reasons include navigating complex legal procedures, negotiating with creditors, protecting your assets, and ensuring your rights are protected throughout the bankruptcy process.

Local Laws Overview

Key aspects of Bankruptcy & Debt law in Panama include the possibility of filing for reorganization or liquidation, the appointment of a trustee to oversee the process, the protection of certain assets from seizure, and the rights and obligations of debtors and creditors.

Frequently Asked Questions

1. What are the different types of bankruptcy in Panama?

In Panama, individuals and businesses can file for either reorganization or liquidation bankruptcy. Reorganization allows debtors to restructure their debts and continue operating, while liquidation involves the sale of assets to repay creditors.

2. How long does the bankruptcy process typically take in Panama?

The length of the bankruptcy process in Panama can vary depending on the complexity of the case, the cooperation of creditors, and other factors. In general, reorganization bankruptcies tend to take longer than liquidation bankruptcies.

3. Are there any alternatives to filing for bankruptcy in Panama?

Yes, there are alternatives to bankruptcy in Panama, such as debt restructuring, negotiations with creditors, and out-of-court settlements. A lawyer specializing in Bankruptcy & Debt can help you explore these options.

4. Will all of my debts be discharged in bankruptcy?

Not all debts may be discharged in bankruptcy. Certain debts, such as child support payments, alimony, and some tax obligations, may not be eligible for discharge. It is important to consult with a lawyer for guidance on which debts can be discharged.

5. Can I keep any assets if I file for bankruptcy in Panama?

Some assets may be exempt from seizure in bankruptcy proceedings. This can include a primary residence, certain personal belongings, and tools necessary for work. A lawyer can help you determine which assets are protected under the law.

6. How will bankruptcy affect my credit score in Panama?

Filing for bankruptcy can have a negative impact on your credit score in Panama. It may stay on your credit report for several years, making it difficult to access credit or loans in the future. However, with responsible financial management, you can rebuild your credit over time.

7. Can creditors continue to contact me after I file for bankruptcy?

Once you file for bankruptcy in Panama, creditors are legally required to stop contacting you directly and instead communicate through your lawyer or the appointed trustee. If creditors continue to harass you, you can seek legal protection against such actions.

8. What are the consequences of not complying with the terms of a bankruptcy agreement in Panama?

If you fail to comply with the terms of a bankruptcy agreement in Panama, such as making scheduled payments to creditors, the court may dismiss your case or convert it to liquidation bankruptcy. It is important to fulfill your obligations to avoid potential consequences.

9. Can I file for bankruptcy without a lawyer in Panama?

While it is possible to file for bankruptcy without a lawyer in Panama, it is highly recommended to seek legal representation. A lawyer can provide valuable guidance, ensure your rights are protected, and help you navigate the complexities of the bankruptcy process.

10. How can I find a reputable Bankruptcy & Debt lawyer in Panama?

You can find a reputable Bankruptcy & Debt lawyer in Panama by asking for recommendations from friends or family, researching law firms online, or contacting local bar associations for referrals. It is important to choose a lawyer with experience in handling bankruptcy cases.

Additional Resources

For additional resources related to Bankruptcy & Debt in Panama, you can refer to the Superintendencia del Mercado de Valores (SMV) website, the Panama National Bankruptcy Registry, or seek guidance from the Panamanian Bar Association.

Next Steps

If you are in need of legal assistance in Bankruptcy & Debt in Panama, the first step is to schedule a consultation with a qualified lawyer specializing in this area of law. They can evaluate your situation, provide personalized advice, and guide you through the process of addressing your financial challenges.