Best Restructuring & Insolvency Lawyers in Ghent

About Restructuring & Insolvency Law in Ghent, Belgium

Restructuring and insolvency law in Ghent, Belgium, addresses the legal processes and solutions available to businesses and individuals facing financial distress. The main objective is to assist debtors and creditors in finding solutions that maximize value, avoid liquidation when possible, and ensure fair distribution of assets among stakeholders. Belgium’s legal framework, applicable to Ghent and the wider Flemish region, is designed to promote both the rescue of viable businesses and orderly winding up of those whose continuation is no longer possible.

Why You May Need a Lawyer

Restructuring and insolvency matters are complex and often urgent. Here are several situations where consulting a lawyer in Ghent is advisable:

• Your business is struggling with mounting debts and you are unsure of your legal options.
• You are a creditor and wish to secure your interests or recover outstanding amounts from an insolvent debtor.
• You have received a notice of bankruptcy or a summons to appear in insolvency proceedings.
• You want to explore judicial reorganization or preventative restructuring measures.
• You need to understand your rights and obligations in case of a director’s liability in insolvency scenarios.
• You are an individual facing personal bankruptcy or debt settlement issues.
• You are concerned about fraudulent transfers or need support in asset tracing related to insolvency.

Legal advice ensures that you are fully informed of your options, minimize risks, and protect your rights throughout the process.

Local Laws Overview

Ghent, as part of Belgium, follows national legislation regarding restructuring and insolvency, primarily the Belgian Insolvency Code (Book XX of the Economic Law Code). Key aspects include:

• Judicial Reorganization Procedure: Aimed at helping businesses restructure and avoid bankruptcy, this can involve court-approved payment plans, collective debt settlements, or transfer of activities.
• Bankruptcy Proceedings: Initiated when a business or individual can no longer meet financial obligations. Assets may be sold to satisfy creditors, and the process follows strict timelines and legal supervision.
• Out-of-Court Settlements: Parties may enter into private restructuring agreements, though some arrangements require court approval to be enforceable.
• Creditor Rights: Creditors can register claims, challenge preferential transactions, and participate in distributions from the insolvent estate.
• Director’s Liability: Company directors must act in the best interest of the business and stakeholders, with the potential for personal liability in cases of mismanagement or late filing for bankruptcy.
• Cross-border Insolvency: EU regulations and collaboration with foreign courts may apply if the debtor has assets or creditors in other countries.

Local courts in Ghent, such as the Commercial Court of Ghent, are responsible for overseeing insolvency cases.

Frequently Asked Questions

What is the difference between restructuring and insolvency?

Restructuring refers to legal and financial measures to help a troubled business recover, while insolvency is the state where a debtor cannot pay debts as they fall due, often culminating in bankruptcy proceedings.

What is judicial reorganization?

Judicial reorganization is a legal process designed to help financially distressed businesses in Belgium reorganize their debts, either through payment plans, debt reduction, or transfer of activities, often with court oversight.

Who can file for bankruptcy in Ghent?

Both individuals and businesses that are insolvent and have ceased payments can file for bankruptcy in Ghent’s commercial courts.

How are creditors paid in insolvency cases?

Creditors are paid from the liquidation of the debtor’s assets in accordance with a legal order of priority, typically favoring secured creditors, employees, tax authorities, and finally unsecured creditors.

Can a company continue operations during restructuring?

Yes, during judicial reorganization or certain out-of-court proceedings, businesses may continue operating under court protection from creditors, aiming to recover or restructure.

What obligations do directors have during insolvency?

Directors must act promptly if insolvency is expected, avoiding actions that worsen the situation or harm creditors. Failing to properly manage insolvency can result in personal liability.

Is personal bankruptcy available for individuals?

Yes, individuals in Ghent may apply for debt settlement or personal bankruptcy with the competent court, subject to specific conditions and a judicially monitored process.

Are there alternatives to bankruptcy?

Alternatives include judicial reorganization, private agreements with creditors, and out-of-court restructuring, which a lawyer can help to negotiate and formalize.

How long do insolvency proceedings take?

The duration depends on the complexity of the case, the type of proceedings, and the level of cooperation by all parties. Simple bankruptcies may close in months, while restructurings can last longer.

How can a lawyer help me during restructuring or insolvency?

A lawyer provides advice on your rights and obligations, prepares and files necessary documents, negotiates with creditors, represents you in court, and helps you select the most appropriate legal strategy.

Additional Resources

If you are seeking guidance or support in Ghent, the following resources may be helpful:

• Commercial Court of Ghent (Ondernemingsrechtbank Gent): Handles insolvency cases and related procedures.
• Federale Overheidsdienst Economie (Federal Public Service Economy): Offers information on business regulations and insolvency frameworks.
• Belgian Insolvency Register (RegSol): Provides public access to insolvency publications and case schedules.
• Local Bar Associations: Can refer individuals and businesses to qualified restructuring and insolvency lawyers in Ghent.
• Chamber of Commerce East Flanders: Offers business support and may provide advice or referrals for restructuring matters.

Next Steps

If you believe you may need legal assistance with restructuring or insolvency in Ghent, consider the following steps:

• Collect all relevant financial and legal documents, such as accounts, contracts, and communications with creditors.
• List your key concerns, including urgent issues that may require immediate attention.
• Contact a qualified restructuring and insolvency lawyer in Ghent for a confidential consultation.
• Discuss your situation openly with your lawyer, who can explain your options, legal risks, and possible outcomes.
• Act promptly to avoid missing critical deadlines or worsening your financial position.

Seeking professional advice early can help you better protect your interests and increase the possibility of a successful resolution, whether you are a debtor, creditor, or other stakeholder involved in restructuring or insolvency matters in Ghent, Belgium.