Best Bankruptcy Lawyers in Marijampolė

About Bankruptcy Law in Marijampolė, Republic of Lithuania

Bankruptcy in Lithuania is a formal legal process used to resolve insolvency - the situation where a person or a company cannot meet its financial obligations when they fall due. In Marijampolė, cases follow national Lithuanian law and court procedures, with local courts and professionals administering proceedings. The legal framework provides two broad tracks - procedures for legal persons such as companies and partnerships, and procedures for natural persons such as consumers and sole traders.

For companies, Lithuanian law integrates both restructuring and bankruptcy into a single insolvency framework. The aim is to either rescue a viable business or close and liquidate a non-viable one in an orderly way that protects creditors and employees. For individuals, bankruptcy focuses on equitable debt resolution, protection from collection actions during the case, and the possibility of a fresh start after completion of a payment plan and compliance with legal duties.

Lithuania is a member of the European Union, so EU cross-border insolvency rules can apply when assets, creditors, or the debtor are spread across different EU member states. In practice, most Marijampolė cases are local - but cross-border rules may be relevant if suppliers, banks, or property are located outside Lithuania.

Why You May Need a Lawyer

You are facing creditor pressure - collection calls, default notices, or enforcement measures by bailiffs and need clear options and protections.

You manage a company that may be insolvent and need to understand director duties, timely filing obligations, and personal liability risk.

You want to explore restructuring instead of liquidation - renegotiating debts, selling non-core assets, or adopting a recovery plan.

You are an individual overwhelmed by debt and want to know if you qualify for personal bankruptcy and what a payment plan would look like.

You received a court notice or claim filed by a creditor and must respond within strict deadlines to protect your rights.

You suspect a counterparty is insolvent and need to file a claim, secure your rights as a creditor, or challenge suspicious transactions.

You need help preparing required documents - financial statements, creditor lists, claim proofs, and a feasible repayment or restructuring plan.

You want to avoid mistakes that can harm your case - preferential payments, undervalued asset transfers, or failure to cooperate with an administrator.

Local Laws Overview

Main acts and authorities. Company insolvency is governed by the Law on Insolvency of Legal Persons - Juridinių asmenų nemokumo įstatymas. Personal bankruptcy is governed by the Law on Bankruptcy of Natural Persons - Fizinių asmenų bankroto įstatymas. Procedures follow the Civil Code and the Code of Civil Procedure. Insolvency administrators are licensed and supervised by the Authority of Audit, Accounting, Property Valuation and Insolvency Management - Audito, apskaitos, turto vertinimo ir nemokumo valdymo tarnyba. Insolvency and company data are recorded by the State Enterprise Centre of Registers - Valstybės įmonė Registrų centras.

Courts and venue. Insolvency cases are heard by courts of general jurisdiction. Jurisdiction depends on the registered office of the company or the residence of the individual. For Marijampolė based parties, cases are typically allocated to courts serving the Marijampolė and Kaunas region. Filings can often be made through the national electronic court services system, and hearings may be held in person or remotely depending on the court.

Triggers and duties. Insolvency is generally identified where liabilities cannot be met as they fall due or where obligations exceed assets. Company directors have a duty to act without delay when insolvency arises - to avoid deepening losses, to protect creditors, and to initiate appropriate procedures. Failure to act properly can lead to civil liability for losses and, in serious cases, disqualification or other sanctions.

Company options - restructuring or bankruptcy. If a business is viable, restructuring can impose a temporary moratorium on enforcement and allow a plan to renegotiate debts, continue operations, and preserve jobs. If the business is not viable, bankruptcy leads to appointment of an insolvency administrator, realization of assets, and distribution to creditors according to statutory priority. Secured creditors are paid from collateral proceeds subject to legal costs and necessary expenses. Employee claims are protected and receive elevated priority under Lithuanian law.

Personal bankruptcy. Individuals who are insolvent and act in good faith may petition for bankruptcy. After the court opens a case, enforcement actions are stayed and a plan is prepared to allocate income for creditors while protecting essential living needs. If the debtor complies with the plan and legal obligations, remaining eligible debts can be discharged at the end of the process. Certain debts may be non-dischargeable by law, such as some family support obligations, fines, and liabilities arising from intentional wrongdoing.

Role of the insolvency administrator. In both corporate and personal cases, the administrator is a licensed professional who manages the estate - collects and sells assets where needed, examines claims, challenges suspicious transactions, and reports to the court and creditors. Administrator remuneration is regulated and subject to court approval.

Claims, priorities, and challenges. Creditors must file claims within deadlines set by the court. Lithuanian law provides for avoidance of harmful pre-insolvency transactions - for example, transfers at undervalue or preferences that unfairly favor certain creditors. The administrator or creditors can bring actions to unwind such transactions and return value to the estate.

Cross-border aspects. EU Insolvency Regulation rules determine which member state court has main jurisdiction where the debtor has its center of main interests and provide for recognition of proceedings across the EU. Businesses in Marijampolė with suppliers or assets in other EU countries should evaluate these rules early.

Frequently Asked Questions

What is the difference between restructuring and bankruptcy for companies

Restructuring aims to rescue a viable business by freezing enforcement, renegotiating debts, and implementing an approved plan while the company continues operating. Bankruptcy is used when the business is not viable - operations are wound down, assets are sold, and proceeds are distributed to creditors under statutory rules.

Can I start personal bankruptcy if I still have a job

Yes. Having a job does not prevent personal bankruptcy. Your income is assessed to fund a realistic payment plan while protecting essential living costs. Stable income can help demonstrate that your plan is feasible.

Will bankruptcy stop bailiff enforcement and collection calls

Yes, once the court opens insolvency proceedings, a stay of enforcement usually applies. Bailiff actions and most collection efforts are paused. Creditors then participate through the case by filing claims and attending creditors meetings as applicable.

Are directors personally liable for company debts in Lithuania

Directors are not automatically liable for company debts, but they can face liability if they breach legal duties - for example by failing to act when insolvency arises, worsening creditor positions, or engaging in dishonest transactions. Early professional advice can reduce this risk.

Which court handles bankruptcy cases in Marijampolė

Jurisdiction depends on the registered office or residence. Cases from Marijampolė are generally assigned to the competent courts serving the Marijampolė and Kaunas region. A lawyer can confirm the correct venue and arrange e-filing where available.

How long does personal bankruptcy take

The duration depends on your circumstances, the payment plan, and court scheduling. The law provides a structured plan period followed by discharge if you comply with obligations. Your lawyer can estimate a timeline after reviewing your income, debts, and assets.

What debts cannot be discharged

Lithuanian law excludes certain debts from discharge, such as some family support obligations, certain fines and penalties, and liabilities arising from intentional unlawful conduct. Your lawyer will identify which of your debts are eligible for discharge.

What documents do I need to start a case

Typically you will need identification, proof of residence or registered office, financial statements or income records, a list of creditors and debts, information on assets and encumbrances, recent bank statements, and documents showing enforcement actions or defaults. Companies also need corporate documents and recent accounts.

Can I choose my insolvency administrator

Administrators are appointed according to law and court practice, with safeguards to ensure independence and qualification. In some cases stakeholders can propose candidates, but the court makes the appointment decision.

How are employees protected if my company goes bankrupt

Employee claims for wages and related amounts receive elevated priority under Lithuanian law. There are also state mechanisms that may assist with certain unpaid wage claims subject to conditions. An administrator will guide employees on filing their claims.

Additional Resources

Authority of Audit, Accounting, Property Valuation and Insolvency Management - Audito, apskaitos, turto vertinimo ir nemokumo valdymo tarnyba - licensing and oversight of insolvency administrators and professional guidance.

State Enterprise Centre of Registers - Valstybės įmonė Registrų centras - information on companies, encumbrances, and official notices related to insolvency.

Lithuanian Courts - Teismai - information on court locations, jurisdiction, and electronic filing services for civil and insolvency cases.

State Guaranteed Legal Aid Service - Valstybės garantuojamos teisinės pagalbos tarnyba - eligibility assessment for state funded legal assistance based on income and case type.

State Tax Inspectorate - Valstybinė mokesčių inspekcija - creditor in many cases, tax debt information, and tax clearance issues.

State Social Insurance Fund Board - Sodra - information on social insurance contributions, debts, and employee related claims.

Marijampolė Municipality - Marijampolės savivaldybė - local social support, business support programs, and contact points for residents.

Lithuanian Bar Association - Lietuvos advokatūra - directory of licensed advocates and practice areas, including insolvency and bankruptcy specialists.

Next Steps

Assess your situation. Make a simple balance sheet of assets and liabilities and list all creditors with amounts, due dates, and collateral. Note any enforcement actions by bailiffs.

Avoid risky actions. Do not transfer assets for less than market value, selectively repay insiders, or ignore court notices. Such actions can be challenged and may increase liability risk.

Gather documents. Prepare identification, residence or registered office details, bank statements, pay slips or financial statements, loan and lease agreements, tax and social insurance records, and any court or bailiff documents.

Consult a lawyer in Marijampolė. A local insolvency lawyer can explain realistic options - personal bankruptcy, out of court settlement, company restructuring, or liquidation - and the likely timelines and costs. Ask about language support and sworn translation if you need it.

Check eligibility for legal aid. If your income is limited, contact the State Guaranteed Legal Aid Service to see if you qualify for full or partial legal aid.

Plan the filing. Your lawyer will select the correct court, prepare the petition and supporting evidence, propose a repayment or restructuring plan if appropriate, and anticipate creditor objections.

Engage with the administrator. If a case is opened, cooperate fully with the insolvency administrator, attend meetings, and provide information promptly. Transparent cooperation is essential to a successful outcome.

Protect ongoing operations. For companies aiming to restructure, maintain core operations, segregate trust or payroll funds properly, and prepare credible projections to support a realistic plan.

Review cross-border issues. If you have creditors, assets, or operations outside Lithuania, discuss EU Insolvency Regulation rules with your lawyer to ensure proper recognition and protection.

Stay informed. Insolvency is a legal process with deadlines and reporting duties. Keep regular contact with your lawyer, monitor court notices, and update your financial information as your case progresses.