Best Restructuring & Insolvency Lawyers in Hanover

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Hanover, Germany

Founded in 1990
English
Herfurth & Partner is an independent law firm based in Hanover, Germany, specializing in national and international business law. Established in 1990, the firm offers comprehensive legal services to family-owned enterprises and multinational corporations. Their areas of expertise encompass...
LDMH Partners
Hanover, Germany

Founded in 2022
English
LDMH Partners is a boutique advisory firm specializing in the life sciences sector, offering unparalleled expertise in legal, regulatory, and ethical matters. With a team of partners who have been at the forefront of law, ethics, and policy globally, the firm provides comprehensive guidance to...
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About Restructuring & Insolvency Law in Hanover, Germany

Restructuring and insolvency law in Hanover, Germany, offers a legal framework for businesses and individuals facing financial distress. The laws are designed to help companies or individuals reorganize, overcome financial difficulties, and, if necessary, conduct orderly insolvency proceedings. Situated in Lower Saxony, Hanover follows German federal insolvency statutes, with local courts (Insolvenzgerichte) playing a central role in handling cases. The process includes both out-of-court restructurings and formal insolvency proceedings, aiming to maximize value and protect the interests of creditors, debtors, and other stakeholders.

Why You May Need a Lawyer

In restructuring and insolvency situations, legal guidance is often crucial. You may need a lawyer if you:

  • Run a business experiencing severe cash flow problems and need advice on restructuring options.
  • Are being threatened with insolvency proceedings by creditors, suppliers, or tax authorities.
  • Need to prepare or review documentation for bankruptcy filings or restructuring plans.
  • Are a creditor seeking to protect your interests during another party's insolvency process.
  • Face potential liability as a managing director or board member under German insolvency law.
  • Require support with negotiations amongst creditors or with the insolvency administrator.
  • Need to navigate the complexities of cross-border insolvency issues.

A lawyer helps clarify your rights, structures legal proceedings efficiently, and mitigates risks of personal liability or lost assets.

Local Laws Overview

Insolvency and restructuring matters in Hanover follow the German Insolvency Code (Insolvenzordnung - InsO). Key features include:

  • Initiation of Proceedings: Both voluntary and involuntary insolvency filings are possible. The local insolvency court in Hanover oversees cases that fall within its jurisdiction.
  • Obligation to File: Directors of insolvent or over-indebted companies must file for insolvency without undue delay, typically within three weeks of becoming insolvent.
  • Protective Shield Proceedings: Companies may apply for restructuring under self-administration (Schutzschirmverfahren) when viable reorganization is possible.
  • Creditor Protections: Creditors’ meetings and committees are established to ensure their rights during proceedings.
  • Personal Insolvency: Private individuals and sole proprietors can seek debt relief via consumer insolvency (Verbraucherinsolvenzverfahren).
  • Cross-Border Considerations: EU regulations apply for cross-border cases, with local German courts playing a central role if the center of main interests is in Hanover.

Strict deadlines, reporting requirements, and opportunities for restructuring outside formal insolvency exist, so a local legal expert is advisable.

Frequently Asked Questions

What is the difference between restructuring and insolvency in Germany?

Restructuring typically involves financial and organizational measures to save a business and avoid insolvency. Insolvency proceedings, by contrast, are formal legal processes initiated when a person or business can no longer meet their financial obligations.

When am I required by law to file for insolvency?

Company directors must file for insolvency without undue delay, usually within three weeks, after becoming insolvent or over-indebted. Failure to do so may result in personal liability or criminal charges.

Can I restructure my business without filing for insolvency?

Yes, restructuring can occur informally through negotiations with creditors before formal insolvency is initiated. New preventive restructuring frameworks introduced in Germany facilitate such out-of-court or hybrid procedures.

What happens to my debts during insolvency proceedings?

During insolvency, most debts are addressed collectively and are subject to the court’s decision on how assets are distributed. Some debts may be discharged at the end of the process, especially in consumer insolvency cases.

Are there alternatives to formal insolvency for struggling businesses?

Yes, alternatives like preventive restructuring processes or voluntary settlement agreements with creditors may be suitable. Consulting with a lawyer helps identify the right approach.

Will I lose my personal assets if my company goes insolvent?

Generally, a company's assets are separate from personal assets. However, directors may be personally liable in cases of delayed filing or wrongful conduct.

How long do insolvency proceedings take in Hanover?

The duration varies depending on complexity and scale. Corporate insolvency cases can last several months to years, while personal insolvency cases often last three years under recent reforms.

What are my rights as a creditor in insolvency proceedings?

Creditors have rights to be informed, participate in creditor meetings, vote on insolvency plans, and may receive distributions from the insolvency estate depending on the outcome.

Can foreign companies file for insolvency in Hanover?

Yes, provided their center of main interests is located in Hanover or within the court’s jurisdiction. EU cross-border insolvency regulations may also apply.

What is the role of the insolvency administrator?

The insolvency administrator (Insolvenzverwalter) manages the insolvent estate, protects creditor rights, oversees asset sales, and prepares distribution plans, under court supervision.

Additional Resources

If you are seeking more information or assistance, consider the following local resources:

  • Hanover District Court (Amtsgericht Hannover - Insolvenzgericht): The official local court handling insolvency matters.
  • Chamber of Commerce of Hanover (Industrie- und Handelskammer Hannover): Offers support for businesses facing financial difficulties.
  • German Bar Association (Deutscher Anwaltverein): Provides directories for qualified insolvency and restructuring lawyers in the region.
  • Debt Advisory Centers (Schuldnerberatung): Local organizations assisting individuals with debt management and insolvency procedures.
  • Federal Ministry of Justice (Bundesministerium der Justiz): Offers official information on insolvency laws and rights.

Next Steps

If you are facing financial difficulties or believe restructuring or insolvency may be necessary, consider the following actions:

  • Document your financial situation and gather all relevant contracts, bank statements, and correspondence.
  • Consult a local lawyer with experience in insolvency and restructuring as early as possible to evaluate options and mitigate risks.
  • Contact the local insolvency court or debt advisory service if you are unsure where to begin.
  • Avoid making significant financial decisions or preferential payments to creditors before receiving legal advice, as this may impact your legal position.
  • Stay informed about application deadlines and reporting requirements, whether you are a director, creditor, or private individual.

Early intervention and professional legal guidance can help protect your interests and provide a clear route through the complexities of restructuring and insolvency in Hanover.

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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.