Best Restructuring & Insolvency Lawyers in Irbid

About Restructuring & Insolvency Law in Irbid, Hashemite Kingdom of Jordan

Restructuring and insolvency law in Irbid, Hashemite Kingdom of Jordan is a specialized area that governs how financially distressed individuals and businesses can reorganize or wind up their affairs. With economic changes and increasing commercial activity in Irbid, resolving financial distress is essential to protect creditors' rights, maintain economic stability, and give viable businesses a second chance. These laws are designed to ensure fair treatment for all stakeholders while promoting recovery and resolution according to Jordanian legal standards.

Why You May Need a Lawyer

Navigating restructuring and insolvency matters in Irbid requires deep knowledge of local regulations, procedures, and court practices. Common situations where legal assistance is crucial include:

• Being unable to pay debts as they fall due as an individual or business
• Facing threats of bankruptcy from creditors
• Wishing to restructure debts to avoid insolvency or bankruptcy
• Dealing with complex creditor agreements or disputes
• Having assets subject to legal claims by multiple parties
• Seeking protection against enforcement actions while negotiating restructuring
• Trying to recover owed amounts as a creditor from an insolvent party
• Representing stakeholders such as employees, suppliers, or investors affected by insolvency

A lawyer can guide you through assessment, planning, negotiations, and court proceedings, reducing mistakes and protecting your legal rights throughout the process.

Local Laws Overview

Jordan's laws governing restructuring and insolvency have evolved in recent years, especially with the enactment of the Insolvency Law No. 21 of 2018. Key points relevant to practice in Irbid include:

• Insolvency Law No. 21 of 2018: Introduces formal procedures for both preventive restructuring and full insolvency. This law applies to companies, traders, and in some circumstances, individuals.
• Preventive Settlement: Debtors can apply for court-sanctioned preventive settlements to reorganize their debts while continuing business operations.
• Insolvency Proceedings: If preventive measures are not sufficient, the law provides for formal insolvency where assets are managed or liquidated under court supervision.
• Role of Insolvency Trustee: A court-appointed trustee manages the insolvent party’s assets, reviews claims, and oversees the equitable distribution to creditors.
• Creditor’s Rights: Creditors have defined procedures to submit claims, vote on restructuring plans, and challenge actions they believe are prejudicial.
• Judicial Oversight: The North Sharia Court and Civil Court in Irbid handle insolvency cases depending on the entity involved.
• Cross-Border Aspects: Special rules may apply if assets or creditors are outside Jordan, requiring additional legal procedures.

The framework stresses timely intervention, court supervision, and the balancing of debtor and creditor interests.

Frequently Asked Questions

What is restructuring and how does it differ from insolvency?

Restructuring involves reorganizing a debtor’s finances or operations to restore solvency and avoid insolvency proceedings. Insolvency is a legal state where an entity cannot pay its debts, leading to court-managed administration or liquidation.

Who can file for insolvency in Irbid?

Companies, traders, and sometimes individuals may file for insolvency under Jordanian law. The application is filed at the competent court, usually with the help of a legal representative.

Can I keep running my business during insolvency proceedings?

Under the preventive settlement procedure, businesses may continue operating while restructuring. In full insolvency, a court-appointed trustee often takes over management.

What is the role of the insolvency trustee?

The trustee manages the debtor’s assets, investigates claims, oversees the restructuring or liquidation process, and ensures fair distribution to creditors.

How are creditors treated in insolvency cases?

Creditors are grouped based on the nature of their claims and are paid in a specific order of priority. Secured creditors and employees often have preferences under the law.

What happens if my business cannot be saved?

If restructuring is not possible, the business’s assets are liquidated, and proceeds are distributed among creditors according to legal priorities.

How long do insolvency proceedings usually take?

The duration varies depending on the case’s complexity, creditor participation, and the value of assets involved. Most cases take several months to a few years.

Are personal debts included in insolvency?

Jordanian insolvency law primarily covers commercial entities and traders, but legal advice should be sought to determine if a particular individual's debts qualify.

Can a creditor force me into insolvency without my consent?

Yes. Creditors can petition the court to declare a debtor insolvent if there is evidence of inability to pay debts. The court then reviews the evidence and makes a decision.

Do I need a lawyer to file for restructuring or insolvency?

While not mandatory in all cases, having a lawyer is highly recommended. The procedures are complex, and legal representation ensures your rights and interests are protected.

Additional Resources

If you need more information or assistance, these resources in Irbid and Jordan can help:

• Jordanian Ministry of Industry, Trade and Supply: Provides official guidance on insolvency law and business restructuring resources.
• Jordanian Bar Association: Offers legal contacts and resources for finding qualified lawyers in Irbid.
• Irbid Chamber of Commerce: Provides support and information for businesses facing financial difficulties.
• Civil and Sharia Courts in Irbid: Handle insolvency filings and proceedings specific to the Irbid region.
• Local Accounting Firms: May assist with financial assessments relevant to restructuring or insolvency cases.

Next Steps

If you are facing financial distress or have claims against an insolvent debtor in Irbid, consider the following steps:

• Gather all relevant financial documents and contracts
• Review your current financial position and immediate obligations
• Consult with an experienced restructuring and insolvency lawyer based in Irbid
• Discuss all possible options, from preventive restructuring to formal insolvency
• Follow the legal advice provided and prepare to submit any required documentation to the courts
• Attend all court hearings and creditor meetings as needed
• Remain proactive in communicating with stakeholders such as creditors, employees, and business partners

Early action and professional advice are key to successfully navigating restructuring and insolvency matters in Irbid, Hashemite Kingdom of Jordan.