Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Restructuring & Insolvency law deals with legal processes for businesses or individuals facing financial distress. In Corfu, Greece, these laws help provide mechanisms for debt resolution, company restructuring, or, if necessary, orderly winding up of insolvent entities. The legislation aims to balance the rights of creditors with the need for businesses and individuals to make a fresh start. Restructuring processes can offer opportunities for recovery, while insolvency proceedings prioritize the fair distribution of assets among creditors according to established legal rules.
Many people may encounter complex financial situations that require expert legal assistance, including:
A lawyer can assist in assessing your financial and legal options, ensure proper compliance with local laws, provide representation in court, and help achieve the most favorable outcome under difficult circumstances.
In Greece, insolvency and restructuring laws are governed primarily by the Greek Bankruptcy Code, as recently updated in line with European Union directives. Corfu, part of the Greek legal jurisdiction, applies these national laws alongside specific local procedures relevant to the Ionian Islands. Key aspects include:
Restructuring refers to legal processes aimed at reorganizing a company or individual’s debts to allow continued operations and avoid insolvency. Insolvency is the formal state where a person or business cannot pay debts as they fall due, often leading to bankruptcy and asset liquidation.
Both individuals and legal entities such as companies can file for insolvency if they are unable to meet their financial obligations. Creditors also have the right to initiate bankruptcy proceedings if a debtor is proven insolvent.
The Court of First Instance in Corfu oversees all court-based insolvency cases. It is responsible for legitimizing filings, appointing administrators, and supervising the distribution of assets.
Certain debts such as fines, taxes, and obligations arising from fraud may not be discharged in bankruptcy proceedings under Greek law.
The duration varies. A simple debt settlement might resolve in months, while complex bankruptcies involving multiple creditors or significant assets can last several years.
Depending on the stage and type of insolvency, business operations may be supervised or restricted. Restructuring proceedings may allow continued management, while bankruptcies typically involve the transfer of control to an appointed administrator.
Yes, alternatives include out-of-court settlements, preventive restructuring, and the use of the extrajudicial debt settlement mechanism to negotiate directly with creditors before entering formal insolvency.
Greek law establishes a ranking system for creditors. Secured creditors, such as mortgage holders, are paid first, followed by employees, the state, unsecured creditors, and shareholders last.
Yes, foreign creditors have the right to participate and file claims. European Union regulations ensure cross-border recognition and fair treatment of foreign interests.
While not always mandatory, navigating restructuring or insolvency processes without a skilled lawyer can be risky. Legal guidance ensures compliance, protects your rights, and increases the likelihood of a favorable outcome.
If you wish to learn more or need support, these resources can be valuable:
If you are facing financial challenges in Corfu and considering restructuring or insolvency:
Taking early action and seeking expert legal guidance can often provide more options and better outcomes for both individuals and businesses.
