Best Restructuring & Insolvency Lawyers in Guatemala

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URBE LEGAL
Coban, Guatemala

Founded in 2012
7 people in their team
Spanish
English
In our Firm, we are concerned in the best interest for our clients; we have grow to have to office, one in Guatemala City, capital of the country, where most of the business takes place. We strongly believe in the grow and benefit of the rural áreas, so we founded a second office in Coban, Alta...
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Mayora & Mayora
Guatemala City, Guatemala

Founded in 1966
200 people in their team
Spanish
English
Since 1966Mayora & Mayora is a leading law firm in Central America that has existed for more than fifty-five years with five offices in Guatemala, El Salvador and Honduras (Tegucigalpa, San Pedro Sula and Roatán). Eduardo Mayora Dawe founded the firm in Guatemala City in 1966, with a vision to...
CARRILLO & ASOCIADOS
Guatemala City, Guatemala

Founded in 1948
200 people in their team
Spanish
English
At Carrillo & Asociados, we treat each client and each case uniquely. To do this, we have developed methodologies that jointly integrate our way of working: the “Carrillo’s way”.Our way of working begins with knowing our clients and their industry, deeply and comprehensively understanding...
QIL+4 Abogados (ALTA)
Guatemala City, Guatemala

Founded in 1989
50 people in their team
Spanish
English
High-end full-service law firm providing and coordinating legal services in the Central American region.We offer quality legal advice in different practice areas under the highest global standards and through an experienced and highly committed legal team.Our legal team is one of the most important...
Permuth & Asociados (Lawyers & Attorneys)
Guatemala City, Guatemala

Founded in 1974
50 people in their team
Spanish
English
Established in 1974, "Permuth y Asociados" is a leading and prestigious law firm in Guatemala, which has successfully handled several of the most relevant and publicized cases in the country.The firm is dedicated to the various traditional areas of law: civil, commercial, administrative and family...
The Legal Hub Guatemala
Guatemala City, Guatemala

Founded in 2018
6 people in their team
English
Spanish
The officeMore than a law firm and lawyers, notaries and notaries, consultants and consultants; We are strategic allies who seek to generate value and tranquility in your business and life; through consultancies that result in results focused on root causes.As professionals, we have experience in...
Salazar-Muñoz Law Firm
Guatemala City, Guatemala

Founded in 1987
10 people in their team
Spanish
English
We want to take this opportunity to present to you and your company, SALAZAR-MUÑOZ Law Firm, a Guatemalan firm that it was founded in 1987, with headquarters in Guatemala City and whose objective is to help companies, both Guatemalan and foreign,  so they can operate in the country, providing...
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About Restructuring & Insolvency Law in Guatemala

Restructuring and insolvency law in Guatemala provides a legal framework for businesses and individuals facing severe financial distress or insolvency. It sets out the processes for reorganizing debts, negotiating with creditors, and if necessary, liquidating assets in an orderly manner. The aim is to protect both the rights of creditors and offer debtors a fair chance to resolve their financial obligations, all under the supervision of the Guatemalan judicial system. The legal framework strives to facilitate economic recovery while maintaining stability and predictability within the marketplace.

Why You May Need a Lawyer

Legal guidance is essential during restructuring and insolvency due to the complexity, potential risks, and possible consequences for debtors and creditors alike. Common situations where you may need legal help include:

- Facing pressure from multiple creditors for unpaid debts - Wanting to negotiate new payment terms or reorganize business operations to avoid bankruptcy - Being served with legal documents related to insolvency proceedings - Assessing the risks of liquidation or asset seizure - Creditors seeking to recover debts from insolvent individuals or companies - Navigating the judicial process for filing formal insolvency or bankruptcy applications - Understanding your rights and responsibilities within insolvency cases - Complying with local Guatemalan laws and avoiding misuse or abuse of insolvency procedures

A qualified attorney can help you explore all available options, represent your interests during negotiations or court proceedings, and ensure you comply with the law.

Local Laws Overview

In Guatemala, restructuring and insolvency processes are mainly governed by the Commercial Code (Código de Comercio) and the Law of Bankruptcy Proceedings (Ley de Quiebras). These laws provide for:

- Voluntary and involuntary bankruptcy filings - Judicial oversight of insolvency and restructuring processes - Appointment of a judicial administrator or a trustee to manage insolvent estates - Development of payment plans or creditor agreements to reorganize debts - Prioritization of creditor claims, including secured, unsecured, and preferential claims - Liquidation of assets when restructuring is not feasible, distributing proceeds according to legal priority - Protection mechanisms intended to prevent asset concealment or fraudulent transactions during insolvency - Clear timelines and procedural requirements for submitting and responding to insolvency claims

Guatemalan insolvency law aims to balance efficient debt resolution, maximize asset values, and ensure fair treatment for creditors and debtors.

Frequently Asked Questions

What is the difference between restructuring and insolvency?

Restructuring involves reorganizing company operations or debts to return to financial health, often before formal insolvency is declared. Insolvency is a legal status when an individual or business cannot pay its debts as they come due.

When can a company or individual declare insolvency in Guatemala?

A debtor may initiate insolvency proceedings if they are unable to fulfil their financial obligations. Creditors may also apply for insolvency if the debtor defaults on payments.

Is there a legal requirement to negotiate with creditors before filing for insolvency?

While not always mandatory, it is often beneficial and can sometimes be required to attempt out-of-court negotiations or settlements with creditors before commencing formal insolvency proceedings.

What are the consequences of bankruptcy for individuals and businesses?

Bankruptcy can result in loss of control over assets, liquidation of property, negative impact on credit ratings, and legal restrictions on business activities until proceedings conclude.

How long do insolvency proceedings usually take in Guatemala?

The timeline varies depending on case complexity, but insolvency and liquidation proceedings can range from several months to years due to procedural and court requirements.

What happens to employees during company insolvency?

Employee claims are typically granted preferential treatment in the order of payment. Wages, severance, and benefits must be addressed as part of the insolvency process.

Can business operations continue during restructuring?

In certain cases, businesses may continue to operate under court supervision, especially if asset preservation or going-concern value is essential to restructuring success.

Are directors or shareholders personally liable for company debts?

Generally, corporate entities limit liability, but directors and shareholders may be held responsible in cases of fraud, mismanagement, or where personal guarantees exist.

How are creditors paid during liquidation?

Proceeds from liquidation are distributed according to legal priority, typically starting with secured and preferential creditors, then unsecured creditors, and any remaining assets to shareholders.

What documents are required to start insolvency procedures?

Debtors or creditors must present evidence of insolvency, including financial statements, a list of debts and assets, identification documents, and supporting contracts or obligations.

Additional Resources

If you need guidance or more information about restructuring and insolvency in Guatemala, the following resources can be helpful:

- Supreme Court of Justice of Guatemala (Organismo Judicial): The main authority overseeing court-administered insolvency processes - Guatemalan College of Lawyers and Notaries (Colegio de Abogados y Notarios de Guatemala): Offers lawyer directories and legal resources - Superintendency of Banks (Superintendencia de Bancos): Regulates financial institutions and may provide oversight in financial insolvency matters - Ministry of Economy (Ministerio de Economía): Offers resources for business owners and potentially guidance on financial restructuring - Chambers of Commerce and Industry: May provide support and information to businesses in financial distress

Next Steps

If you are facing financial difficulty or have concerns about insolvency in Guatemala, it is vital to act promptly and seek professional advice. Here is how you can proceed:

- Collect all relevant financial documents, contracts, and correspondence with creditors - Assess your situation to determine whether restructuring, negotiation, or formal insolvency may be the best option - Contact a qualified Guatemalan attorney specializing in restructuring and insolvency to review your case - Discuss potential strategies and develop a plan tailored to your circumstances - Work closely with your legal advisor throughout negotiations or court processes to ensure compliance with local laws and protect your rights - Stay informed about deadlines, requirements, and your legal obligations at every stage

Taking early action and obtaining expert legal support can significantly improve your chances of achieving a fair and favorable outcome in any restructuring or insolvency situation in Guatemala.

Lawzana helps you find the best lawyers and law firms in Guatemala through a curated and pre-screened list of qualified legal professionals. Our platform offers rankings and detailed profiles of attorneys and law firms, allowing you to compare based on practice areas, including Restructuring & Insolvency, experience, and client feedback. Each profile includes a description of the firm's areas of practice, client reviews, team members and partners, year of establishment, spoken languages, office locations, contact information, social media presence, and any published articles or resources. Most firms on our platform speak English and are experienced in both local and international legal matters. Get a quote from top-rated law firms in Guatemala - quickly, securely, and without unnecessary hassle.

Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation. We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please contact us, and we will review and update it where appropriate.