Best Restructuring & Insolvency Lawyers in Gothenburg

About Restructuring & Insolvency Law in Gothenburg, Sweden

Restructuring and insolvency law in Gothenburg is part of Swedish national law and aims to manage the financial distress of companies and individuals. The primary purpose is to provide orderly and fair solutions for debtors who cannot meet their financial obligations, while offering safeguards for creditors. Restructuring proceedings strive to enable businesses to survive and regain profitability, while insolvency works as a legal way to handle the liquidation of assets and division among creditors if recovery is not feasible.

Gothenburg, being Sweden’s second-largest city and a significant industrial hub, has a well-established legal infrastructure to assist individuals and businesses with these issues. Whether you are a creditor, debtor, or stakeholder, understanding the frameworks set by Swedish law is essential for navigating complex financial challenges.

Why You May Need a Lawyer

There are several situations in which seeking legal help for restructuring and insolvency in Gothenburg becomes necessary:

• Your business is experiencing serious financial difficulties and is at risk of insolvency.
• You are a creditor seeking to recover unpaid debts from a company or individual facing insolvency.
• You want to understand your options and rights during a debt restructuring process.
• You need assistance navigating Swedish bankruptcy or company reorganization rules.
• You require representation during negotiations with creditors or in court.
• You are a business owner seeking to avoid personal liability during company insolvency.
• You are facing pressure from banks or other lenders threatening to take legal action.

A specialized lawyer can help protect your interests, offer strategic guidance, and ensure compliance with local laws for the best possible outcome.

Local Laws Overview

Swedish insolvency and restructuring law is mostly governed by three main acts:

• The Bankruptcy Act (Konkurslagen) - sets out the rules for declaring bankruptcy, administration of assets, and creditor claims.
• The Company Reorganization Act (Lag om företagsrekonstruktion) - provides procedures for financial restructuring aimed at business survival, often involving temporary protection from creditors and restructuring of debts.
• The Act on Debt Relief (Skuldsaneringslagen) - allows qualifying individuals to obtain relief from debts under certain conditions.

Gothenburg courts have local jurisdiction for bankruptcy and restructuring matters involving companies and individuals based in the city or surrounding region. Proceedings are mostly handled by the District Court (tingsrätt), with appointments of insolvency practitioners (rekonstruktör or konkursförvaltare) to manage the process.

Sweden’s approach emphasizes transparency, creditor equality, and efficiency. There are formal obligations for both debtors and creditors to disclose relevant financial information, and some proceedings require creditor and court approval of restructuring plans.

Frequently Asked Questions

What is the difference between restructuring and insolvency?

Restructuring is a process aimed at helping financially distressed businesses recover by reorganizing their operations and debts. Insolvency typically refers to a situation where a company or person is unable to pay outstanding debts when due, often resulting in bankruptcy or liquidation.

How do I know if my company is insolvent?

Insolvency arises if your company cannot pay its debts as they come due or if its liabilities exceed its assets. This is known as illiquidity and over-indebtedness, and a financial expert or lawyer can help assess your specific situation.

What happens when a company files for restructuring in Gothenburg?

When a company files for restructuring, the District Court may appoint a restructuring administrator. The company gains temporary protection from creditor actions, and a plan for repayment or reorganization is developed in consultation with creditors.

What is personal bankruptcy? Can individuals declare bankruptcy in Sweden?

Yes, individuals in Sweden can be declared bankrupt. The process involves the court taking control of the individual’s assets for distribution among creditors, after which the remaining debts may be canceled if no assets remain.

Can creditors force a company into bankruptcy?

Yes, creditors may apply to the court for a bankruptcy order against a debtor who has failed to fulfill payment obligations. Creditors need to provide evidence of unpaid, overdue debts.

Does my business have to close if declared bankrupt?

In most cases, bankruptcy means your business will be liquidated, although some operations can continue temporarily while assets are sold. If restructuring is possible and approved, the business may survive in a new form.

How are employees affected by company insolvency in Gothenburg?

Employee claims receive priority in bankruptcy proceedings, and there is a national salary guarantee scheme (lönegaranti) that may cover unpaid wages and employment benefits up to certain limits.

Can I start a new business after insolvency or bankruptcy?

Yes, Swedish law allows individuals to start new businesses after bankruptcy. However, limitations may apply in certain professions or if you have outstanding disqualifications.

How long does the restructuring or bankruptcy process take?

The duration varies. Company restructuring usually takes three to six months, while bankruptcy can last several months to over a year, depending on complexity and the size of the assets involved.

Will details of my bankruptcy or restructuring be made public?

Yes, insolvency and restructuring proceedings are generally public in Sweden. Details are published in the official record and are accessible by creditors, stakeholders, and in some cases, the public.

Additional Resources

If you need help or more information on restructuring and insolvency matters in Gothenburg, the following resources can be valuable:

• Swedish Enforcement Authority (Kronofogden): Handles debt enforcement and provides advice on debt management.
• District Court of Gothenburg (Göteborgs tingsrätt): Local court handling insolvency and restructuring cases.
• Swedish Companies Registration Office (Bolagsverket): Registry and official information on Swedish companies.
• Swedish Bar Association (Advokatsamfundet): Directory of qualified lawyers specializing in insolvency law.
• Business Sweden and Almi: Government agencies supporting business recovery and financing.

Various private law firms in Gothenburg also offer specialized legal services in corporate recovery, bankruptcy, and restructuring.

Next Steps

If you believe you are facing financial difficulties or involved in a restructuring or insolvency situation in Gothenburg, consider these steps:

• Assess your financial situation thoroughly. Gather all relevant financial documents and debt records.
• Contact a qualified lawyer or legal advisor experienced in restructuring and insolvency law in Gothenburg.
• Consult with the Swedish Enforcement Authority or other public bodies if you are unsure where to start.
• Act promptly - delays in seeking advice or action may reduce your available options.
• Discuss with stakeholders, including creditors and business partners, where appropriate.

Legal procedures in restructuring and insolvency are complex, and early intervention can help preserve assets, protect your rights, and improve prospects for recovery or an orderly exit. Do not hesitate to seek legal assistance to understand your rights and obligations under Swedish law.