Best Restructuring & Insolvency Lawyers in Aurich

About Restructuring & Insolvency Law in Aurich, Germany

Restructuring and insolvency law in Aurich follows German federal law with local implementation through the Amtsgericht Aurich, which acts as the insolvency court for debtors with residence or registered office in the Aurich district. The main legal framework is the Insolvenzordnung (InsO) for formal insolvency proceedings and the StaRUG law for preventive restructuring processes outside of full insolvency. Proceedings can address individual consumers, small businesses, and larger companies. Common outcomes include formal insolvency administration with an insolvency administrator, court-approved reorganization under an insolvency plan, protective shield proceedings, or an out-of-court restructuring under StaRUG when the company is not yet insolvent but faces imminent distress.

Local practitioners combine knowledge of federal insolvency rules with regional business conditions in Aurich and East Frisia. Practical considerations often include preserving local jobs, managing creditor relationships, and coordinating with regional bodies such as chambers of commerce and municipal debt counselling services.

Why You May Need a Lawyer

Insolvency and restructuring are complex and time-sensitive. You may need a lawyer if you are:

- A business owner facing liquidity shortfalls or over-indebtedness and needing advice about filing obligations, possible restructuring options, or preventive measures under StaRUG.

- A director or managing officer worried about personal liability, criminal risks, or the statutory obligation to file for insolvency in a timely manner.

- A creditor seeking to file a claim, assert security rights, or participate in creditor committees and meetings.

- An employee or works council member facing questions about wage claims, insolvency pay, or transfer of employment relations in a restructuring.

- A consumer debtor considering a consumer insolvency procedure and needing guidance on the course of the procedure and discharge options.

- A party involved in contested creditor actions, avoidance claims, or complex cross-border insolvency matters where coordination with other jurisdictions is necessary.

Local Laws Overview

Key legal elements you should know when dealing with restructuring and insolvency in Aurich include:

- Insolvenzordnung (InsO): The federal insolvency code governs opening of insolvency proceedings, creditors meetings, the role of the insolvency administrator, avoidance actions, and insolvency plans. The Amtsgericht Aurich functions as the local insolvency court for filings based in the Aurich district.

- StaRUG - preventive restructuring framework: This law provides a route for companies in imminent distress to negotiate and confirm restructuring plans with majority creditor support and court involvement, avoiding full insolvency proceedings in many cases.

- Filing obligations for management: Under §15a InsO, management must file for insolvency without undue delay and at latest within three weeks after illiquidity or over-indebtedness becomes apparent. Failure to meet this duty can lead to personal liability and criminal sanctions.

- Types of proceedings: Consumer insolvency procedures are tailored to private individuals. Regular insolvency proceedings apply to companies and traders. Options include standard insolvency administration, insolvency plan proceedings, and special forms such as self-administration (Eigenverwaltung) and protective shield proceedings (Schutzschirmverfahren).

- Insolvency wages and employee protection: Employees can claim insolvency pay (Insolvenzgeld) for unpaid wages through the Bundesagentur für Arbeit for up to three months in most cases. Transfer of undertakings rules and collective bargaining issues may arise in restructurings.

- Avoidance and creditor preference claims: Transactions shortly before insolvency can be clawed back under avoidance rules. Secured creditors have priority but must follow formal procedures to assert their rights in the insolvency estate.

- Local institutions: Typical local contacts in the Aurich region include the Amtsgericht Aurich as insolvency court, the Industrie- und Handelskammer for Ostfriesland und Papenburg, regional debt counselling services, and labour authorities.

Frequently Asked Questions

What signs mean I should consider insolvency or restructuring advice?

Key signs include persistent inability to pay creditors as they fall due, mounting overdue taxes or social security contributions, frequent bounced payments, loss of major customers, or clear over-indebtedness where liabilities exceed available assets. If these appear, seek legal or financial advice quickly to preserve options.

What is the difference between consumer insolvency and company insolvency?

Consumer insolvency procedures are designed for private individuals and focus on achieving a discharge of residual debt after a defined repayment or hardship period. Company insolvency deals with business assets, creditor claims, and possible corporate restructuring or winding-up. The courts apply different procedural rules and outcomes depending on whether the debtor is a natural person or a corporate entity.

Can creditors force my company into insolvency?

Yes. If a creditor obtains an enforceable judgment and execution actions fail, they can request that the court open insolvency proceedings against your company. The court will consider statutory grounds for insolvency before opening proceedings.

What happens to employees if my company files for insolvency?

Employees generally keep their employment relationship unless the company is sold or specific redundancies occur. Unpaid wages for up to three months before the insolvency can be covered by insolvency pay through the Federal Employment Agency. Works councils and employee representatives should be involved early in restructuring discussions.

Can company directors be held personally liable?

Yes. Directors can face civil liability for breaches of their duties, including failure to file for insolvency in time, wrongful payments that damage creditors, or violations of tax and social security payment obligations. In some cases, there may also be criminal consequences. Early legal advice can help mitigate these risks.

What is self-administration (Eigenverwaltung) and could it apply here?

Self-administration allows management to remain in control of day-to-day operations while an insolvency trustee supervises and major decisions require court approval. Courts may grant it when a plausible restructuring plan exists and creditors' interests are protected. It can be an alternative to full takeover by an insolvency administrator if conditions are met.

How does StaRUG help before insolvency actually occurs?

StaRUG provides a preventive restructuring framework for companies facing imminent insolvency. It enables a debtor to propose a restructuring plan that binds certain classes of creditors if court confirmation requirements are met. StaRUG aims to preserve business value and avoid formal insolvency proceedings when a viable turnaround is possible.

Can I keep trading during insolvency proceedings?

In many cases, a business can continue trading during proceedings, particularly under an insolvency plan, self-administration, or protective shield procedure. Continuation often depends on court approval and may require strict reporting and cooperation with the insolvency administrator or monitor.

How do I file a claim as a creditor and protect my security interests?

Creditors must register their claims with the insolvency administrator within the deadline set by the court and submit documentation proving the claim. Secured creditors must ensure their security rights are properly documented and, where possible, enforce them promptly or notify the insolvency administrator to preserve priority.

How much does legal help cost and are there funding options?

Costs depend on case complexity, the chosen lawyer's fee model, and whether a fee agreement is made. Fees are typically based on the Rechtsanwaltsvergütungsgesetz or on individually agreed hourly or fixed fees. Public legal aid such as Beratungshilfe or Prozesskostenhilfe may be available for qualifying individuals. Ask potential counsel about fees and possible payment arrangements in your first meeting.

Additional Resources

When seeking help around Aurich, consider these local and national resources:

- Amtsgericht Aurich - Insolvenzgericht for filings and court procedures.

- Industrie- und Handelskammer für Ostfriesland und Papenburg for business support and local economic information.

- Handwerkskammer (regional chamber of crafts) for craft businesses and sector-specific advice.

- Municipal debt counselling services in Aurich, including social services offices, for consumer debt guidance.

- Verbraucherzentrale Niedersachsen for consumer advice and information on personal insolvency.

- Bundesagentur für Arbeit for issues relating to insolvency pay and employee claims.

- Deutscher Anwaltverein and regional bar associations to locate specialized insolvency and restructuring lawyers.

- Publications and official information from the Bundesministerium der Justiz und für Verbraucherschutz for statutes and official explanations.

- Insolvency registers and insolvency announcements, which are published formally and can be consulted to check filings and published notices.

Next Steps

If you believe you need assistance with restructuring or insolvency in Aurich, follow these steps:

- Gather documentation: recent balance sheets, profit and loss statements, bank statements, tax notices, social security records, outstanding invoices and contracts, shareholder and board minutes, and correspondence with key creditors.

- Make an initial assessment: review cash flow and liabilities to determine whether you face illiquidity or over-indebtedness. Note key deadlines such as tax payment dates or creditor enforcement actions.

- Seek immediate advice: contact a lawyer experienced in insolvency and restructuring. Early consultation helps protect directors from liability and preserves restructuring options such as StaRUG or self-administration.

- Consider debt or business counselling: municipal or non-profit debt counsellors can help individuals. Business owners may use the local IHK or a restructuring advisor for operational and financial planning.

- Preserve evidence and avoid risky transactions: do not make preferential payments to related parties, and keep clear records. Avoid disposal of assets without legal advice.

- Prepare for possible filing or negotiation: with counsel, decide whether to negotiate with creditors, pursue a preventive restructuring, or prepare for formal insolvency proceedings. Your lawyer will explain procedural steps, likely timelines, and costs.

Taking quick, informed steps can preserve options and reduce the risk of greater loss. If you are unsure where to start, request an initial meeting with a local insolvency lawyer and bring the documents listed above.