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Restructuring and insolvency law in Agia Paraskevi follows the national legal framework of Greece, applied through the local courts and professionals who serve the greater Athens area. Procedures cover both businesses and individuals and are designed to either reorganize an indebted entity so it can continue operating or to liquidate assets and distribute proceeds to creditors. Over recent years Greek law has been reformed to provide more tools for out-of-court workouts, formal restructuring plans and court-supervised reorganizations. If you live or run a business in Agia Paraskevi, practical matters such as where to file, which court hears your case and which local professionals you will work with are handled through Athens-area judicial and administrative bodies.
Restructuring and insolvency matters raise complex legal, financial and procedural issues. You may need a lawyer if you are a business owner facing heavy debt, a director concerned about personal liability, an individual struggling to pay mortgage or consumer debts, a creditor seeking to recover money, an employee with unpaid wages, or an investor involved in a distressed company. A lawyer helps assess options - informal negotiations, out-of-court restructurings, preventive restructuring, court-supervised reorganization, or liquidation - prepares filings, represents you in creditors meetings and court hearings, negotiates with banks and other creditors, protects your rights under Greek insolvency rules and coordinates with accountants and insolvency practitioners.
Key aspects of the Greek framework that are particularly relevant in Agia Paraskevi include the following general points:
- Types of procedures: options range from informal out-of-court workouts and negotiated settlements to formal court-supervised reorganization plans and liquidation. There are also special procedures for natural persons seeking debt relief.
- Court supervision and protection: certain formal restructuring processes provide court approval and may grant temporary protection from enforcement actions once a petition is accepted or protective measures are ordered by the court. Out-of-court workouts do not automatically halt enforcement.
- Role of insolvency practitioners: licensed insolvency administrators or trustees may be appointed to manage the debtor estate, oversee asset sales or supervise a reorganization plan.
- Creditors' rights and voting: creditors are classified by type - secured, unsecured, preferential - and voting rights on plans depend on these classifications. Reorganization plans often require the approval of a certain number of creditor classes and may include cramdown provisions to bind dissenting creditors under defined conditions.
- Director and debtor duties: company directors have duties to minimize creditor losses; continuing to trade while insolvent can create civil liability and, in certain cases, criminal exposure for fraudulent behaviour. Debtors must disclose assets and claims accurately.
- Priority of claims: secured creditors generally have priority over specific collateral, while employee wage claims and certain statutory obligations may receive privileged treatment in distribution.
- Cross-border issues: Greece applies European insolvency regulations in cross-border matters where relevant; international creditors and debtors should expect coordination between jurisdictions in multinational cases.
For someone in Agia Paraskevi these rules are applied through the courts and registries based in Athens. Local lawyers will be familiar with the practical operation of these procedures and with the local judicial panels that handle restructuring and insolvency matters.
Restructuring means changing the terms of debt and operations to allow a company or individual to continue operating - for example by extending repayment, reducing debt or altering contracts. Insolvency is the financial state where liabilities exceed assets or the debtor cannot pay due debts when they fall due. Insolvency may lead to formal restructuring or to liquidation if reorganization is not feasible.
You start by consulting a lawyer to assess options. For court-supervised procedures an application must be filed with the competent court registry in the Athens area. For out-of-court workouts you and your creditors negotiate terms directly or through mediators and advisors. A lawyer will help prepare filings, supporting documents and, if needed, requests for protective measures to pause enforcement actions.
It depends on the procedure. Certain court-supervised restructuring options can provide temporary protection from enforcement once the court orders protective measures. Informal out-of-court negotiations do not automatically block enforcement. Early legal advice is important to seek the right protection at the right time.
Yes, one purpose of restructuring is to allow viable businesses to continue trading. However, directors must act lawfully, preserve value and avoid actions that harm creditors. In some procedures an insolvency practitioner or court-appointed manager may take over management duties temporarily.
Outcomes depend on the type of procedure, whether the mortgage is in default, the classification of the property and available protections for vulnerable debtors. Some restructuring plans allow retention of primary residence through adjusted payments, while liquidation usually allows secured creditors to seek enforcement against collateral. A lawyer can explain local protections for primary residences and potential alternatives.
Timing varies widely. Informal workouts can be negotiated in weeks or months. Formal court-supervised reorganizations often take several months to a few years depending on complexity, creditor negotiations and appeals. Liquidation timelines depend on asset realization and creditor distributions. Your advisor will provide a more accurate estimate after reviewing the facts.
You will generally need financial statements, bank statements, tax filings, lists of creditors and amounts owed, details of assets including real estate and collateral, corporate records if applicable, payroll records and any contractual arrangements. Accurate, up-to-date documentation speeds the process and helps build credibility with creditors and the court.
Fees vary by case complexity and lawyer or firm. Some initial consultations are charged at a fixed rate, while complex matters are billed hourly or via a retainer. There may be limited pro bono or legal aid resources for individuals who meet strict financial criteria. Ask the lawyer for a fee estimate and whether phased work or alternative fee arrangements are available.
Creditors evaluate and vote on restructuring proposals. Their consent thresholds depend on the procedure and classifications. Secured creditors have specific rights over collateral. In court-supervised reorganizations creditors may be bound by confirmed plans if statutory voting and cramdown conditions are met. Negotiating with major creditors early is often critical to success.
Cross-border issues can complicate matters. EU insolvency rules and international private law determine jurisdiction, recognition and coordination between courts. Assets or creditors outside Greece may require parallel proceedings or recognition of Greek decisions abroad. Specialist advice is essential where foreign parties or assets are involved.
- Athens Bar Association - for lists of local lawyers and professional standards.
- Greek Ministry of Justice - for information on court procedures and insolvency reforms.
- General Commercial Registry (GEMI) - for company registrations and corporate filings.
- Independent Authority for Public Revenue - for tax obligations and enforcement matters.
- Hellenic Association of Insolvency Practitioners or local insolvency professional bodies - for licensed administrators and trustees.
- Local courts in the Athens judicial district - for filing requirements and court calendars.
- Bank of Greece and Hellenic Financial Stability entities - for information relevant to banking claims and non-performing loan frameworks.
1. Gather your documents - prepare recent financial statements, lists of creditors, bank records and contracts. These are essential for an initial assessment.
2. Seek an initial consultation with a lawyer experienced in restructuring and insolvency - discuss timelines, likely options and fees. Consider bringing an accountant or financial adviser to the meeting.
3. Avoid risky or irreversible steps - do not transfer assets without advice, and avoid actions that could trigger liability, such as preferential payments to some creditors to the detriment of others.
4. Explore out-of-court options first - if possible, negotiate with key creditors to reach a restructuring agreement before initiating formal proceedings.
5. If you need protection from enforcement, instruct your lawyer immediately - certain court remedies provide temporary stays or protective orders but they must be sought early.
6. Choose local professionals - a lawyer familiar with Athens courts and local insolvency practitioners will be able to navigate the practicalities specific to Agia Paraskevi and the surrounding judicial district.
If you are unsure where to start, contact a qualified restructuring and insolvency lawyer for an assessment of your situation and a clear plan of next steps tailored to your needs.
