Best Restructuring & Insolvency Lawyers in Farum

1. About Restructuring & Insolvency Law in Farum, Denmark

Restructuring and insolvency law in Denmark governs how distressed businesses and individuals manage debt, reorganize operations, or exit through liquidation. The framework aims to preserve value, protect employees, and provide orderly procedures for creditors. In Farum, residents typically engage local legal counsel to navigate Danish insolvency processes and coordinate with the appropriate courts and authorities.

Two core paths exist within Danish law: restructuring to preserve a business and bankruptcy to wind down operations. The main tools are reconstruction procedures for distressed companies and bankruptcy proceedings conducted by the Skifteretten within the district court system. Individuals may also pursue debt relief mechanisms under specific statutory regimes when applicable.

In recent years Denmark has aligned its restructuring framework with EU standards to encourage early intervention and reduce full insolvency. This alignment emphasizes preventive restructuring and streamlined processes to maximize creditor value while offering breathing room for viable enterprises. Practitioners in Farum increasingly reference EU guidelines when advising clients on feasibility and timelines.

Directive 2019/1023 on preventive restructuring frameworks aims to improve efficiency and consistency of restructurings across the EU, including Denmark.

Source: eur-lex.europa.eu

The OECD notes that well designed insolvency regimes can shorten resolution times and support creditor recovery while protecting the debtor's right to a fair procedure.

Source: www.oecd.org

2. Why You May Need a Lawyer

• A Farum-based company facing a cash flow crisis seeks a reconstruction plan to avoid liquidation and preserve jobs. A lawyer can prepare a feasibility assessment, negotiate with creditors, and file a reconstruction petition with the appropriate Skifteretten.

• An employer in Farum receives a bankruptcy petition from creditors. A legal adviser helps mount a defense, advise on provisional measures, and coordinate creditor negotiations to maximize recovery and minimize employee disruption.

• A business owner anticipates a potential cross-border debt issue. A restructuring specialist will map local Danish procedures and liaise with foreign counsel to handle cross-border creditor claims and asset transfers.

• An individual debtor in Farum considers debt relief or a formal restructuring plan. A solicitor explains eligibility, assists with applying for a debt relief arrangement, and coordinates with Skifteretten as required.

• A creditor seeks to secure collateral or recover funds from an insolvent Danish borrower. Legal counsel can preserve security interests, file relevant claims, and participate in creditor committees during restructuring or liquidation.

• Key employees or unions worry about potential redundancies in a restructuring. A solicitor can advise on employee protections, notice requirements, and the distribution of proceeds under Danish law.

3. Local Laws Overview

The Danish system distinguishes between corporate restructuring and formal insolvency. The following laws are central to most Farum cases:

• Konkursloven (the Danish Bankruptcy Act) governs bankruptcy procedures for companies and individuals, including filing, appointment of administrators, and distribution of assets. The act is periodically updated to reflect EU guidelines and domestic policy priorities. Recent changes emphasize clearer timelines and creditor participation.
• Lov om rekonstruktion af virksomheder (the Reconstruction of Enterprises Act) provides mechanisms to restructure distressed companies while aiming to preserve business value and employment. The act supports plans for debt adjustment, creditor compromise, and interim protective measures during restructuring.
• Gældssaneringsloven (the Debt Relief Act) for individuals covers eligibility for debt relief or settlement arrangements for private individuals with unsustainable debt. Applications are typically handled by Skifteretten with oversight from relevant authorities.

Recent trend note: Denmark has integrated preventive restructuring concepts from EU Directive 2019/1023 into national practice, encouraging earlier and more flexible interventions before full insolvency. This shift supports smoother restructurings in municipalities like Farum and the surrounding Copenhagen region.

4. Frequently Asked Questions

What is the first step to start a bankruptcy in Farum?

The first step is to consult a Danish insolvency lawyer who can assess whether liquidation or restructuring is best. You will gather financial records, contracts, and creditor details to determine the proper filing location with Skifteretten.

What is the difference between Konkursloven and Rekonstruktionsloven?

Konkursloven covers bankruptcy and liquidation outcomes, while Rekonstruktionsloven addresses restructuring to preserve a viable business. Each path has different court processes, timelines, and creditor protections.

How long does a typical Danish restructuring take in Farum?

Timelines vary by case complexity, creditor involvement, and court schedules. Shorter matters may complete within a few months, while large restructurings can take a year or more with ongoing adjustments.

Do I need to attend hearings in Farum for restructuring?

Most hearings occur at the Skifteretten in the appropriate district court, not necessarily in Farum. Your lawyer will represent you and coordinate appearances as required.

What are typical costs to hire an insolvency lawyer in Denmark?

Costs depend on case complexity and the lawyer's fee structure. Many lawyers bill hourly or offer fixed-fee arrangements for defined services. Expect higher costs for full-scale restructurings and court appearances.

Do I need to hire a lawyer to file for bankruptcy?

While not legally mandatory, a lawyer improves the chance of procedural accuracy, creditor coordination, and timely court filings. In complex cases, counsel is strongly recommended.

What is the difference between a debt relief plan and bankruptcy for individuals?

A debt relief plan negotiates a settlement or adjustment of personal debts under Skifteretten oversight, while bankruptcy for individuals involves liquidation of assets and discharge by the court. Debt relief is typically more rehabilitative.

Can a creditor stop a restructuring in progress?

Creditors can object and present competing proposals, but a controlled process with court supervision aims to balance interests. A well drafted restructuring plan reduces the risk of liquidation.

When should a Farum business seek insolvency counsel?

Seek counsel at the first signs of unsustainable debt or default risk. Early intervention improves restructuring opportunities and creditor negotiation leverage.

What documents should I prepare before meeting a lawyer?

Prepare a 12-month profit and loss statement, balance sheet, cash flow forecast, major contracts, loan agreements, and creditor contact lists. Having board resolutions and employment agreements helps speed up the process.

Is there a different process for small businesses in Farum?

Small businesses often have simplified procedures, but still follow Danish law. A local insolvency attorney can tailor advice to the size and sector of your business.

5. Additional Resources

• Directive (EU) 2019/1023 on preventive restructuring frameworks - Official EU text explaining minimum requirements for restructuring across member states, including Denmark.
• OECD - Insolvency and the economy - Analyses and policy notes on how insolvency regimes impact business dynamism and recovery.
• World Bank - Insolvency and creditor rights overview - Global perspective on insolvency indicators and reform examples.

6. Next Steps

1. Define your objective clearly: restructuring to preserve value or orderly liquidation. This guides your legal strategy from the start.

2. Collect key documents: financial statements, debt schedules, contracts, and employee information. Organize them by creditor and obligation type.

3. Identify local insolvency lawyers in the Farum/Copenhagen area with demonstrated experience in Rekonstruktionsloven and Konkursloven matters. Use professional directories and referrals from trusted business networks.

4. Request initial consultations to assess fit, ask about fees, and understand potential timelines. Prepare a shortlist of questions about past restructurings and success rates.

5. During consultations, ask about engagement scope, expected deliverables, and communication frequency. Confirm preferred reporting formats and court involvement expectations.

6. Obtain a written engagement letter or retainer agreement. Review scope, fee structure, and termination terms before signing.

7. Develop a practical plan with your lawyer, including creditor communications, interim protections, and a draft restructuring or debt relief proposal. Set milestones and review dates.