Best Restructuring & Insolvency Lawyers in Frederiksberg

About Restructuring & Insolvency Law in Frederiksberg, Denmark

Restructuring and insolvency law in Frederiksberg, Denmark focuses on assisting individuals and businesses that are facing financial difficulties. The legal framework allows companies and private persons to take steps to reorganize their financial affairs or, when necessary, to go through bankruptcy procedures. The main goals are to help viable businesses survive by restructuring debt or organization, and to ensure fair and orderly settlements for creditors if insolvency cannot be avoided. Frederiksberg, as a municipality closely linked with the capital region, follows Danish national law for restructuring and insolvency, with local nuances influenced by court practice and business culture in the Copenhagen area.

Why You May Need a Lawyer

Legal assistance is often critical in restructuring and insolvency situations. You may need a lawyer if you are:

• Running a business struggling with overwhelming debts or cash flow issues
• A creditor concerned about recovering unpaid invoices
• An individual who cannot pay personal debts and is considering debt relief or bankruptcy
• Seeking to restructure agreements with banks, suppliers, or other creditors
• Facing legal action from creditors or receiving notices from the enforcement court ("Fogedretten")
• Unsure about your rights and obligations under Danish insolvency law
• Wanting to protect personal assets in advance of possible financial difficulties

A lawyer with experience in restructuring and insolvency can guide you through legal processes, ensure your interests are protected, and work toward the best possible outcome.

Local Laws Overview

Danish insolvency and restructuring law is primarily governed by the Bankruptcy Act ("Konkursloven"). In Frederiksberg, the rules are applied by the local court ("Retten på Frederiksberg") in accordance with national standards. Some key aspects include:

• Restructuring Proceedings (Rekonstruktion): These aim to help businesses either regain solvency through voluntary agreements or, if not viable, ensure orderly winding up. Negotiations may involve debt reduction, payment plans, or organizational changes.
• Bankruptcy (Konkurs): If insolvency cannot be resolved, bankruptcy proceedings distribute the debtor’s assets to creditors in a prioritized order as set out in the law. The process is court-supervised.
• Personal Insolvency: Individuals can also apply for debt relief ("gældssanering") if their financial situation is unsustainable and hopeless to recover without intervention.
• Creditor Rights: Creditors have specific rights to file claims, challenge transactions, and participate in proceedings.
• Obligation to File: Danish law requires that insolvent companies file for bankruptcy or restructuring without undue delay to avoid personal liability for management.

While national law provides the main structure, proceedings in Frederiksberg are handled by local courts and may involve local lawyers, accountants, and administrators familiar with the region's practices.

Frequently Asked Questions

What is the difference between restructuring and bankruptcy?

Restructuring is a process where efforts are made to reorganize a business’s finances to avoid bankruptcy, often through new payment agreements or operational changes. Bankruptcy involves the liquidation of a company’s or individual’s assets because debts cannot be paid.

Who can file for restructuring or bankruptcy in Frederiksberg?

Both individuals and businesses can file if they meet the legal criteria for insolvency. Applications are submitted to the local court in Frederiksberg.

What is a trustee in bankruptcy?

A trustee ("kurator") is a court-appointed professional, usually a lawyer, who manages the bankruptcy estate, including liquidating assets and distributing proceeds to creditors.

Can personal assets be seized during bankruptcy?

Yes, in case of bankruptcy, non-essential personal assets can be seized and sold to pay creditors. Certain assets, like everyday household items, may be exempt.

How long does a restructuring or bankruptcy process take?

The duration varies depending on the complexity of the case. Simple bankruptcies may conclude in months, while complex restructurings or large estates can take several years.

Do I lose control of my business during restructuring?

In formal restructuring, company management may retain day-to-day operations, but major decisions often require the approval of the restructuring administrator and the court.

Can a creditor force me into bankruptcy?

Yes, creditors may petition the court for your bankruptcy if you are insolvent and unable to pay debts as they fall due.

Is debt relief (gældssanering) possible for individuals?

Yes, but only if strict legal conditions are met, including a documented inability to pay and good-faith attempts to resolve debt issues. The court evaluates applications based on each individual’s circumstances.

What happens to employees if a company goes bankrupt?

Employees’ claims, such as unpaid wages, are prioritized in the bankruptcy process. The Danish Employees’ Guarantee Fund ("Lønmodtagernes Garantifond") may cover certain unpaid amounts.

What can I do to prevent insolvency?

Seek legal and financial advice early, maintain good financial records, and negotiate with creditors promptly if payment issues arise. Early intervention increases the chance of a successful restructuring.

Additional Resources

If you need more information or support, the following resources may be helpful:

• Retten på Frederiksberg: The local court handling restructuring and insolvency cases.
• Danish Bankruptcy Court Administration ("Domstolsstyrelsen"): Offers guidance on legal procedures.
• Lønmodtagernes Garantifond (LG): Assists employees affected by employer insolvency.
• Local Bar Association: Provides lists of qualified lawyers in restructuring and insolvency.
• Debt Advisory Services (Gældsrådgivning): Charitable and municipal organizations provide non-profit debt counseling for individuals.

Next Steps

If you are facing financial difficulties or have concerns about insolvency, the following steps can guide you toward the right solution:

• Gather relevant financial documents, including contracts, accounts, and correspondence with creditors or banks.
• Consult a lawyer experienced in restructuring and insolvency law in Frederiksberg for an initial assessment of your situation.
• Discuss your options for out-of-court settlements, formal restructuring, or bankruptcy proceedings.
• If you are a business owner, inform key stakeholders and consider potential impacts on employees, suppliers, and customers.
• Take action promptly, as unnecessary delay can limit your options or result in personal liability.

Professional legal advice is the best way to protect your interests and navigate the complexities of restructuring and insolvency law in Frederiksberg, Denmark.