Best Restructuring & Insolvency Lawyers in Glostrup

About Restructuring & Insolvency Law in Glostrup, Denmark

Restructuring and insolvency law in Glostrup, Denmark, refers to the legal processes and frameworks designed to help businesses and individuals who are facing financial difficulties. These laws provide structured ways for parties to reorganize their debts, negotiate with creditors, or, if necessary, proceed with bankruptcy and asset liquidation. Located just outside Copenhagen, Glostrup follows the national Danish insolvency and bankruptcy laws, which are robust and aim to balance the interests of debtors, creditors, and other stakeholders. Whether you are a business owner, an individual, or a creditor, understanding these legal protections and obligations is essential if you are dealing with financial distress in the Glostrup area.

Why You May Need a Lawyer

Seeking legal guidance in restructuring and insolvency matters can be crucial for several reasons. Common situations where a lawyer’s help is invaluable include:

• If your business is struggling to meet its financial obligations and you need advice on restructuring your debts effectively
• If you are considering voluntary bankruptcy and need to understand the legal process and potential consequences
• If creditors are pursuing legal action against you, and you need to protect your assets or negotiate settlements
• If you are a creditor and require assistance in recovering debts from a business or individual in financial distress
• If you are involved in negotiations with stakeholders, such as banks or suppliers, and need knowledgeable representation
• If you want to explore the possibility of rescuing and reorganizing your company before insolvency becomes inevitable

An experienced lawyer in Glostrup can ensure that your interests are safeguarded, help you navigate complex laws, and work towards the best possible solution under the circumstances.

Local Laws Overview

Restructuring and insolvency matters in Glostrup are governed primarily by Danish national legislation, notably the Danish Bankruptcy Act (Konkursloven). Important aspects include:

• Debt restructuring (rekonstruktion): A legal process enabling companies or individuals to attempt to restructure their debts under court supervision and avoid bankruptcy.
• Suspension of payments (betalingstandsning): Temporarily halting payment obligations as part of efforts to negotiate with creditors, with court involvement required.
• Bankruptcy proceedings (konkurs): If restructuring fails or is not suitable, bankruptcy proceedings can be initiated, leading to liquidation of assets and distribution to creditors.
• Order of priority: Danish law establishes a clear priority system for how creditors get paid from the assets of the insolvent party.
• Role of the trustee: In bankruptcy cases, a trustee is appointed by the court to manage the estate, liquidate assets, and ensure fair distribution.
• Personal liability: In some cases, company directors or management may be held personally liable if insolvency is not handled correctly.

Local courts in Glostrup carry out these processes following national rules. It is vital to act early and consult a competent legal adviser to obtain the best possible outcome.

Frequently Asked Questions

What is the difference between restructuring and bankruptcy?

Restructuring allows you to reorganize your debts and attempt to continue your business, while bankruptcy means liquidating all non-exempt assets to pay creditors because the company or individual is insolvent and cannot recover financially.

When should I consider restructuring rather than bankruptcy?

You should consider restructuring if there is a realistic chance to save your business by renegotiating debts, improving operations, or obtaining new financing. If these attempts are unlikely to succeed, bankruptcy may be more appropriate.

What is the process for filing for bankruptcy in Glostrup?

The process begins with a petition to the court, either by the debtor or a creditor. The court then appoints a trustee who manages the liquidation of assets and distributes the proceeds to creditors according to Danish law.

How does the order of priority work among creditors?

Danish law specifies a strict order of payment. Secured creditors, such as banks holding collateral, are paid first. Next are preferential creditors like employees, followed by unsecured creditors. Any remaining assets go to shareholders last.

Can I continue to run my business during restructuring?

In many cases, yes. The court and appointed administrator oversee the process, but daily management often stays with the company’s directors, subject to restrictions and supervision.

What protection do I have as a director during insolvency?

Directors are generally protected if they act in good faith and follow proper procedures. However, failure to act once insolvency is apparent can result in personal liability for company debts.

What are the consequences of bankruptcy for individuals?

Individuals in bankruptcy may have most of their assets liquidated, face restrictions on starting new businesses, and have diminished credit standing for several years. Some assets and income may be protected by law.

How long does the insolvency process usually take?

The timeframe depends on the complexity of the case, but restructuring can take several months, while bankruptcy liquidation can vary from a few months to more than a year.

What documents do I need to start insolvency proceedings?

You should prepare detailed financial statements, a list of creditors and debts, information on assets, and any relevant contracts or legal claims.

Can foreign creditors participate in Danish insolvency proceedings?

Yes, foreign creditors can file claims and participate, but they must follow Danish procedures and may need to provide claim translations or further documentation.

Additional Resources

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

• Danish Bankruptcy Court in Glostrup (Glostrup Ret) - handles local bankruptcy and restructuring proceedings
• The Danish Business Authority (Erhvervsstyrelsen) - provides guidance for businesses in distress
• The Danish Debt Collection Agency (Gældsstyrelsen) - assists with claims and debt recovery
• Danish Bar and Law Society (Advokatsamfundet) - can help you find qualified lawyers in Glostrup
• Local business advisory centers and chambers of commerce - offer support, especially for small businesses

Next Steps

If you or your business is facing financial difficulties in Glostrup, Denmark, consider the following steps:

• Gather all relevant financial documents, such as balance sheets, bank statements, and lists of assets and liabilities
• Consider whether you wish to attempt restructuring or if bankruptcy is more suitable based on your situation
• Seek legal advice early to explore all your options and avoid costly mistakes - a local lawyer can guide you through the best course of action
• If you receive legal notices or court documents from creditors, act promptly and consult a lawyer before responding
• Contact the court in Glostrup or the relevant authorities for information on specific procedures and required documents

Early intervention and professional guidance are the keys to achieving the most favorable outcome. Taking proactive steps and consulting a qualified restructuring and insolvency lawyer in Glostrup can make a significant difference for your future.