Best Restructuring & Insolvency Lawyers in Brasov

About Restructuring & Insolvency Law in Brasov, Romania

Restructuring and insolvency law in Brasov, Romania, provides mechanisms for businesses and individuals to address financial distress and insolvency in a structured, legally regulated way. The goal is to protect both debtors and creditors while ensuring the preservation and optimization of asset value. Romanian insolvency regulations, which apply to Brasov and the wider country, are mainly governed by Law no. 85/2014 regarding procedures for preventing insolvency and insolvency itself. Brasov, as a major economic center in central Romania, has seen an increasing need for legal frameworks to assist companies facing economic hardship, as well as to help creditors recover debts efficiently.

Why You May Need a Lawyer

Legal support is vital in restructuring and insolvency cases because these matters are highly complex, regulated, and time-sensitive. Some common situations where professional legal advice is highly recommended include:

• Assisting businesses facing temporary financial difficulties in negotiating with creditors and restructuring debts
• Navigating bankruptcy filings and insolvency proceedings
• Helping creditors protect their rights and recover outstanding amounts from insolvent debtors
• Drafting and reviewing recovery or reorganization plans
• Addressing cross-border insolvency cases
• Navigating the liquidation process, including asset sales and debt distribution among creditors
• Understanding liabilities and risks associated with management or ownership in distressed companies

An experienced lawyer can ensure proper compliance with local laws, represent you in court, and negotiate favorable outcomes, ultimately saving time, money, and unnecessary stress.

Local Laws Overview

In Brasov, restructuring and insolvency matters are guided primarily by national Romanian laws, with local courts and practitioners implementing the law at a regional level. Some key aspects include:

• Law no. 85/2014 on insolvency prevention and insolvency procedures: Establishes two main procedures: restructuring (reorganization) and bankruptcy (liquidation).
• Restructuring and reorganization: Offers businesses in financial distress a chance to restructure debts and continue operations, usually through a court-approved plan.
• Bankruptcy/liquidation: If restructuring is not viable, the insolvent entity may enter liquidation, with assets sold and proceeds distributed among creditors.
• Specialized courts: Insolvency matters are handled by tribunals such as the Brasov Court of Law, with specialized judges.
• Roles of stakeholders: Creditors, debtors, liquidators, and insolvency practitioners each have formal roles and rights during the process.
• Manager liability: Company directors can be held liable for certain actions leading to or during insolvency.
• Creditor claims: Strict deadlines apply for registering creditor claims during insolvency proceedings.

It is essential to understand these legal frameworks to protect your interests, whether you are a debtor or creditor.

Frequently Asked Questions

What is insolvency in Brasov, Romania?

Insolvency is a legal status in which an individual or company is unable to meet its financial obligations as they become due. In Romania, the process is governed by Law no. 85/2014, and it can lead to company restructuring or liquidation.

Can a company avoid bankruptcy through restructuring?

Yes, if the company demonstrates that it can regain financial viability, it may restructure debts and operations through a court-supervised reorganization plan, helping to avoid liquidation.

Who can initiate insolvency proceedings?

Both debtors and creditors can initiate insolvency proceedings. A company’s management may file if insolvency conditions are met, or creditors may apply to recover unpaid debts.

Are individuals eligible for insolvency protection?

Romanian law primarily addresses legal entities, but recent legislation also provides limited insolvency protection for individuals, mainly entrepreneurs and professionals.

What happens to employees during company insolvency?

Employees’ claims are prioritized in the distribution of assets. In restructuring, jobs may be preserved; in liquidation, employment contracts are generally terminated, and outstanding wages form privileged claims.

How are creditors paid during insolvency?

Creditors must register their claims within set deadlines. After asset liquidation, payments are distributed according to a legally established order of priority.

What is the role of an insolvency practitioner?

A licensed insolvency practitioner administers the procedure, manages assets, drafts reports, and ensures fair treatment of all parties. They play a central role in both restructuring and liquidation processes.

Can legal actions against the debtor continue during insolvency?

Generally, legal actions and enforcement proceedings against the debtor are suspended once insolvency proceedings begin, to ensure equal treatment of creditors.

How long do insolvency procedures take in Brasov?

The duration depends on case complexity, the type of procedure (restructuring or liquidation), and court workload. Simple cases may resolve in one to two years, but complex ones can last longer.

What are the risks for company directors during insolvency?

Directors may face liability if their actions contributed to insolvency, such as mismanagement or fraud. They are also obligated to file for insolvency when conditions are met, and failure to do so can result in penalties.

Additional Resources

• Brasov Tribunal (Tribunalul Brașov): The main court responsible for handling insolvency proceedings in the Brasov region.
• National Union of Insolvency Practitioners of Romania (UNPIR): Licensing and regulatory body for insolvency professionals.
• Brasov Chamber of Commerce and Industry: Offers support to businesses, including information on insolvency prevention.
• Romanian Trade Register Office: Maintains records of companies and bankruptcy proceedings.
• Law firms specializing in restructuring and insolvency: Many local and national law firms have dedicated teams able to assist with Brasov cases.

Next Steps

If you face financial distress, suspect insolvency, or need information about your rights and obligations, consider these steps:

• Consult a specialist lawyer with experience in restructuring and insolvency in Brasov.
• Gather all relevant financial documents and records, such as contracts, accounting statements, and creditor lists.
• If you are a creditor, register your claim promptly after insolvency proceedings begin.
• Stay informed about legal deadlines and obligations to avoid loss of rights.
• Engage with qualified insolvency practitioners for technical support during court proceedings.

Working closely with a trusted legal advisor can help you navigate the complexities of restructuring and insolvency law, protect your interests, and achieve the most favorable outcome possible for your situation in Brasov, Romania.