Best Restructuring & Insolvency Lawyers in Budapest

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Founded in 1997
50 people in their team
Hungarian
English
About usBán, S. Szabó, Rausch & Partners (BSRP) is an independent full service Hungarian law firm, whose clientele primarily consists of Hungarian and foreign/international companies. Its practice includes mergers and acquisitions (M&A), advice in regulatory matters, competition law, real...
Lakatos, Köves and Partners
Budapest, Hungary

Founded in 1991
50 people in their team
Hungarian
English
I lead a team which has world class skills. We pride ourselves on our excellent and sophisticated work and practical approach. Our creative thinking has often helped our clients find innovative solutions in groundbreaking transactions. Feedback from our clients confirms that our firm is seen as one...
Pákay Law Office
Budapest, Hungary

Founded in 1995
50 people in their team
Hungarian
English
After working in business and government in Hungary and abroad, Dr. András Pákay founded the Law Firm in 1995. In 2000, he was joined by Dr. Sándor Gyurkovics - who, during his long government career - was the State Secretary for Public Administration at the Ministry of Transport and Water.The...
DR. Dobos István attorney
Budapest, Hungary

Founded in 2014
50 people in their team
Hungarian
English
This website is maintained by Dr. István Dobos, a lawyer registered with the Budapest Bar Association (headquarters: 1117 Budapest, Völgycsillag utca 4.6.2., sub-office: 1132 Budapest, Westpoint Office Center Váci út 18. 5th floor, KASZ: 36058982) according to the laws and internal regulations...
KNP LAW
Budapest, Hungary

Founded in 2006
50 people in their team
Hungarian
English
KNP LAWThree words are the foundation on which KNP LAW was built 15 years ago. We are a firm based in Hungary, but through our experience and expertise, we have served not only as a local firm but as an international firm with a global network able to provide the highest level of legal services in...
KCG Partners Law Firm
Budapest, Hungary

Founded in 2014
50 people in their team
Hungarian
English
THE FIRMKCG Partners Law Firm is a business law firm supported by strong litigation and tax advisory capabilities. The Firm combines the efficiency and economy of an elite local law firm with the in-depth knowledge of a global firm.Over the last decades, we have established a strong reputation for...
OrmosNet
Budapest, Hungary

Founded in 2000
50 people in their team
Hungarian
English
Our historyOrmosNet was founded in 2000. As one of the very first Hungarian boutique law firms, our attorneys and lawyers have established practice and a solid knowledge in the fields of IT and telecom law for more than 20 years now.Besides skills generally expected...
Szecskay Law Firm
Budapest, Hungary

Founded in 1992
50 people in their team
Hungarian
English
The Szecskay Law Firm is an independent, leading Hungarian law firm. Our goal is to be our clients' long-term, reliable legal advisors, thereby helping them to focus on the growth of their business activities.The firm provides its services to its clientele of multinational and local companies,...
Helpers
Budapest, Hungary

Founded in 2005
50 people in their team
Hungarian
English
ABOUT HELPERS HUNGARYHELPERS is proud to be working with some of the best professionals on the market. In our line of business, the key is establishing a productive working relationship and information flow between our staff, our clients, our partners and the authorities. Want to know how we do...

Founded in 1992
50 people in their team
Hungarian
English
The members of the association - dr. Attila Lénárdt, dr. Zsuzsanna L. Tóth and dr. István Valenytik - possess great experience, a substantial knowledge and understanding of the legal realm and a broad and extensive line of clients in Budapest and its surrounding area, as well as throughout...
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About Restructuring & Insolvency Law in Budapest, Hungary

Restructuring and insolvency law in Budapest, Hungary, is designed to address situations where businesses or individuals are struggling with financial challenges. These laws provide structured legal processes for managing financial distress, reorganizing debts, or, if necessary, winding up operations in a fair and orderly manner. The aim is to balance the interests of creditors, debtors, employees, and other stakeholders while protecting the overall economy. Whether you are a business owner facing liquidity issues or a creditor trying to recover debts, understanding how restructuring and insolvency procedures work in Budapest is crucial.

Why You May Need a Lawyer

Seeking professional legal advice in restructuring and insolvency matters can make a significant difference in the outcome. Here are some common scenarios where a lawyer's assistance is essential:

  • Your company is unable to meet its debt obligations or is at risk of insolvency.
  • You wish to initiate a corporate restructuring to avoid insolvency and keep your business viable.
  • You are a creditor seeking to recover debts or protect your rights in an insolvency proceeding.
  • You need advice regarding the best course of action under Hungarian laws to mitigate legal and financial risks.
  • You want to understand the consequences of bankruptcy, liquidation, or reorganization procedures, both for businesses and individuals.
  • You require assistance with filings, negotiations, or representation in court or in front of governmental authorities.

Legal expertise ensures compliance with local regulations, protects your interests, and helps develop a realistic strategy during financially challenging times.

Local Laws Overview

Hungary's framework for restructuring and insolvency is primarily governed by Act XLIX of 1991 on Bankruptcy and Liquidation Proceedings and its subsequent amendments. The law outlines two main forms of collective debt solution procedures:

  • Bankruptcy Proceedings - These are intended to help solvent companies reorganize, seek protection from creditors, and attempt to settle debts through a supervised agreement. During bankruptcy, there is a temporary moratorium on enforcement actions.
  • Liquidation Proceedings - This is a court-supervised process for winding up the affairs of an insolvent company, selling its assets, and distributing proceeds to creditors in accordance with statutory priorities.

The Hungarian legal system also recognizes pre-insolvency negotiation frameworks and voluntary restructuring measures. Creditors and debtors are encouraged to engage in out-of-court settlements before resorting to more formal procedures. Special attention is given to the protection of secured creditors, employee claims, and public interest considerations.

Insolvency proceedings in Budapest are typically handled by specialized regional courts. There are strict procedural and documentation requirements, and deadlines must be observed to protect rights or assert claims. Additionally, cross-border insolvencies are regulated in accordance with European Union regulations, especially when assets or creditors are located in other EU member states.

Frequently Asked Questions

What is the difference between bankruptcy and liquidation in Hungary?

Bankruptcy proceedings aim to give debtors a chance to reach a settlement with creditors and reorganize finances while under temporary protection from legal claims. Liquidation is the process of winding up insolvent companies, selling assets, and paying creditors.

Who can initiate insolvency proceedings in Budapest?

Both debtors and creditors can initiate insolvency proceedings. Debtors may apply for bankruptcy protection, while creditors can initiate liquidation if the debtor fails to meet payment obligations.

How long do insolvency proceedings typically take in Hungary?

The time frame varies depending on the complexity of the case and the chosen procedure. Bankruptcy proceedings can last several months to a year or longer. Liquidation proceedings may take one to several years.

What happens to employees if a company enters liquidation?

Employee claims for unpaid wages and related benefits are given high priority in liquidation proceedings. However, the ability to pay depends on the available assets of the company.

Can an individual declare bankruptcy in Hungary?

Until recent years, bankruptcy proceedings in Hungary primarily applied to legal entities. However, personal insolvency procedures now exist for individuals facing serious debt problems, subject to strict conditions and eligibility criteria.

What is a moratorium, and how does it affect creditors?

A moratorium is a temporary suspension of enforcement actions against a debtor during bankruptcy proceedings, allowing time to negotiate a settlement. Creditors cannot pursue individual claims during this period.

Are all creditors treated equally in insolvency?

No, creditors are paid according to a statutory order of priority. Secured creditors, employees, and the tax authority are often prioritized over unsecured creditors.

Can restructuring agreements be negotiated out of court?

Yes, parties are encouraged to seek voluntary or out-of-court restructuring agreements whenever possible to avoid costly and lengthy formal proceedings.

What are the responsibilities of company directors during insolvency?

Directors must act in the best interests of creditors once insolvency is imminent. They are required to avoid actions that could worsen the financial situation or favor specific creditors and must cooperate fully with court and liquidators.

How are cross-border insolvency cases handled in Budapest?

Cross-border insolvency cases involving EU member states must adhere to EU regulations, specifically the European Insolvency Regulation, which coordinates jurisdiction and recognition of insolvency proceedings between countries.

Additional Resources

If you need more information or assistance, consider consulting the following organizations:

  • Budapest Metropolitan Court - Handles local insolvency and liquidation cases.
  • Hungarian Official Gazette - Publishes mandatory notices of insolvency proceedings.
  • Ministry of Justice of Hungary - Oversees legal reforms and implementation within the restructuring and insolvency field.
  • Hungarian Bar Association - Offers directories of qualified insolvency law practitioners in Budapest.
  • Hungarian Court Bailiffs’ Service - Involved in enforcement actions relating to insolvency cases.

Next Steps

If you are facing financial distress or want to assess your options regarding restructuring and insolvency in Budapest, begin by documenting your financial position and collecting all relevant contracts and records. Consider reaching out to a qualified restructuring and insolvency lawyer, who can review your situation, explain your options, and guide you through the legal process. Early legal advice can help protect your rights and improve the chances of a favorable outcome, whether you are a debtor or creditor. Schedule a consultation to discuss your case, understand your risks, and create a plan tailored to your needs.

Lawzana helps you find the best lawyers and law firms in Budapest through a curated and pre-screened list of qualified legal professionals. Our platform offers rankings and detailed profiles of attorneys and law firms, allowing you to compare based on practice areas, including Restructuring & Insolvency, experience, and client feedback. Each profile includes a description of the firm's areas of practice, client reviews, team members and partners, year of establishment, spoken languages, office locations, contact information, social media presence, and any published articles or resources. Most firms on our platform speak English and are experienced in both local and international legal matters. Get a quote from top-rated law firms in Budapest, Hungary - quickly, securely, and without unnecessary hassle.

Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.