Best Restructuring & Insolvency Lawyers in Hungary

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Founded in 1997
50 people in their team
Hungarian
English
About usBán, S. Szabó, Rausch & Partners (BSRP) is an independent full service Hungarian law firm, whose clientele primarily consists of Hungarian and foreign/international companies. Its practice includes mergers and acquisitions (M&A), advice in regulatory matters, competition law, real...
Lakatos, Köves and Partners
Budapest, Hungary

Founded in 1991
50 people in their team
Hungarian
English
I lead a team which has world class skills. We pride ourselves on our excellent and sophisticated work and practical approach. Our creative thinking has often helped our clients find innovative solutions in groundbreaking transactions. Feedback from our clients confirms that our firm is seen as one...
Pákay Law Office
Budapest, Hungary

Founded in 1995
50 people in their team
Hungarian
English
After working in business and government in Hungary and abroad, Dr. András Pákay founded the Law Firm in 1995. In 2000, he was joined by Dr. Sándor Gyurkovics - who, during his long government career - was the State Secretary for Public Administration at the Ministry of Transport and Water.The...
DR. Dobos István attorney
Budapest, Hungary

Founded in 2014
50 people in their team
Hungarian
English
This website is maintained by Dr. István Dobos, a lawyer registered with the Budapest Bar Association (headquarters: 1117 Budapest, Völgycsillag utca 4.6.2., sub-office: 1132 Budapest, Westpoint Office Center Váci út 18. 5th floor, KASZ: 36058982) according to the laws and internal regulations...
KNP LAW
Budapest, Hungary

Founded in 2006
50 people in their team
Hungarian
English
KNP LAWThree words are the foundation on which KNP LAW was built 15 years ago. We are a firm based in Hungary, but through our experience and expertise, we have served not only as a local firm but as an international firm with a global network able to provide the highest level of legal services in...
KCG Partners Law Firm
Budapest, Hungary

Founded in 2014
50 people in their team
Hungarian
English
THE FIRMKCG Partners Law Firm is a business law firm supported by strong litigation and tax advisory capabilities. The Firm combines the efficiency and economy of an elite local law firm with the in-depth knowledge of a global firm.Over the last decades, we have established a strong reputation for...
OrmosNet
Budapest, Hungary

Founded in 2000
50 people in their team
Hungarian
English
Our historyOrmosNet was founded in 2000. As one of the very first Hungarian boutique law firms, our attorneys and lawyers have established practice and a solid knowledge in the fields of IT and telecom law for more than 20 years now.Besides skills generally expected...
Szecskay Law Firm
Budapest, Hungary

Founded in 1992
50 people in their team
Hungarian
English
The Szecskay Law Firm is an independent, leading Hungarian law firm. Our goal is to be our clients' long-term, reliable legal advisors, thereby helping them to focus on the growth of their business activities.The firm provides its services to its clientele of multinational and local companies,...
Helpers
Budapest, Hungary

Founded in 2005
50 people in their team
Hungarian
English
ABOUT HELPERS HUNGARYHELPERS is proud to be working with some of the best professionals on the market. In our line of business, the key is establishing a productive working relationship and information flow between our staff, our clients, our partners and the authorities. Want to know how we do...

Founded in 1992
50 people in their team
Hungarian
English
The members of the association - dr. Attila Lénárdt, dr. Zsuzsanna L. Tóth and dr. István Valenytik - possess great experience, a substantial knowledge and understanding of the legal realm and a broad and extensive line of clients in Budapest and its surrounding area, as well as throughout...
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About Restructuring & Insolvency Law in Hungary

Restructuring and insolvency law in Hungary governs the processes and legal frameworks surrounding the financial distress, reorganization, and liquidation of companies and individuals. Aimed at preserving economic value, protecting creditors' rights, and encouraging business continuity where possible, Hungarian law encompasses a range of procedures such as bankruptcy, liquidation, and various forms of restructuring. These laws are designed to offer viable solutions to debtors experiencing financial difficulty and to ensure a fair and equitable outcome for all parties involved.

Why You May Need a Lawyer

Seeking legal assistance in matters of restructuring and insolvency is crucial for both debtors and creditors. Here are some common situations where you may need a lawyer's help:

  • If your business is struggling to pay debts and you need advice on available restructuring options.
  • If you are a creditor seeking to recover what is owed from an insolvent individual or company.
  • If you are considering filing for bankruptcy or liquidation and require guidance through the complex procedures.
  • If you want to negotiate with creditors to avoid formal insolvency proceedings.
  • If you face legal claims or lawsuits from creditors.
  • If you need representation in court or before an insolvency administrator.
  • If you need help understanding your rights and obligations under Hungarian law during insolvency proceedings.

Lawyers specialized in restructuring and insolvency can help you navigate the intricate processes, draft legal documents, and protect your interests throughout the proceedings.

Local Laws Overview

The key aspects of Hungarian restructuring and insolvency laws are primarily governed by Act XLIX of 1991 on Bankruptcy Proceedings and Liquidation Proceedings. Here are some of the most important features:

  • Bankruptcy Proceedings: Debtors can initiate bankruptcy proceedings to seek temporary protection from creditors and negotiate a settlement. This provides a statutory moratorium on most forms of debt collection.
  • Liquidation Proceedings: Typically initiated by creditors or the debtor, liquidation is the process by which an insolvent debtor's assets are sold to repay creditors.
  • Reorganization Procedures: Although more limited than in some other jurisdictions, Hungarian law does allow certain restructuring and out-of-court settlement options.
  • Ranking of Creditors: Creditors' claims are ranked according to statutory priority, with secured creditors and those with employee claims often given precedence.
  • Insolvency Administrators: An independent administrator is appointed to oversee the estate and ensure fair distribution of assets.
  • Directorship Duties: Directors have specific obligations if the company is nearing insolvency, including avoiding preferences and acting in the best interests of creditors.

Understanding the nuances of these procedures is essential. The courts play a central role, and strict deadlines and formalities apply.

Frequently Asked Questions

What is the difference between bankruptcy and liquidation in Hungary?

Bankruptcy proceedings are debtor-initiated and aim to reach a settlement with creditors while benefiting from a moratorium. Liquidation, usually creditor-initiated, involves winding up an insolvent entity and distributing assets.

Who can initiate insolvency proceedings?

In Hungary, both the debtor and creditors can initiate insolvency proceedings, depending on the specific circumstances and type of procedure.

What protection does a moratorium provide?

A moratorium, typically granted during bankruptcy proceedings, provides temporary protection from most enforcement actions by creditors while a settlement is negotiated.

Are there alternatives to court insolvency proceedings?

Yes, out-of-court restructurings and settlements are possible if both sides agree, but formal protection like a moratorium is only available through court proceedings.

How are creditors ranked in liquidation?

Creditors are paid in a statutorily determined order, with claims such as secured debts and employee claims generally taking priority over unsecured creditors.

What happens to directors during insolvency?

Directors have duties to act in the best interests of all creditors if insolvency is likely. They may be personally liable for certain breaches of these duties.

How long do insolvency proceedings usually take?

The duration can vary. Bankruptcy proceedings may last up to one year, while liquidation can take several years depending on the complexity of the estate.

Can foreign creditors participate in Hungarian insolvency proceedings?

Yes, foreign creditors have the right to participate and file claims in Hungarian insolvency proceedings under the same terms as domestic creditors.

What is the role of the insolvency administrator?

The insolvency administrator manages the debtor's assets, evaluates claims, and oversees the fair distribution of proceeds in accordance with legal priorities.

Is personal bankruptcy available in Hungary?

Personal bankruptcy procedures are available in Hungary for individuals, subject to strict eligibility criteria and legal obligations during the process.

Additional Resources

For help and further information about restructuring and insolvency in Hungary, consider reaching out to the following resources:

  • Hungarian Courts: Responsible for handling insolvency and bankruptcy cases.
  • Hungarian Chamber of Commerce and Industry: Provides information and support for business restructuring.
  • Association of Hungarian Insolvency Practitioners: Professional body for insolvency administrators and trustees.
  • National Tax and Customs Administration of Hungary: Offers guidance on tax-related issues in insolvency.
  • Ministry of Justice: Oversees the legal framework for insolvency and bankruptcy procedures.

Next Steps

If you are facing financial difficulties or are involved in a situation related to restructuring and insolvency in Hungary, take the following steps:

  • Assess your financial situation and collect all relevant documents, such as contracts and financial statements.
  • Consult with a qualified lawyer who specializes in restructuring and insolvency law in Hungary to discuss your options.
  • Consider whether an out-of-court settlement may be possible, or whether formal insolvency proceedings are necessary.
  • Follow your lawyer's advice regarding communication with creditors or court filings.
  • Stay informed of legal deadlines and procedural requirements to protect your interests.

Early legal advice is essential in maximizing your options and minimizing potential risks. Experienced professionals can help you choose the right approach for your specific circumstances.

Lawzana helps you find the best lawyers and law firms in Hungary 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 Hungary - 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.