Best Restructuring & Insolvency Lawyers in Jersey
Share your needs with us, get contacted by law firms.
Free. Takes 2 min.
Or refine your search by selecting a city:
List of the best lawyers in Jersey
Browse restructuring & insolvency law firms by city in Jersey
Refine your search by selecting a city.
About Restructuring & Insolvency Law in Jersey
Restructuring and insolvency law in Jersey provides the framework for addressing financial distress, corporate restructuring, and the insolvency of individuals and companies. Jersey is a leading international finance centre and its insolvency and restructuring regime is designed to protect creditors' rights, facilitate business rescue where possible, and to ensure the orderly distribution of assets in the event of insolvency. Jersey law combines both local statutes and elements of English common law, offering a robust legal environment for dealing with financial challenges.
Why You May Need a Lawyer
You may need a lawyer in restructuring and insolvency situations for several reasons. If your business is facing cash flow issues or unable to meet its debts, legal advice is crucial to assess your options and manage exposure to liability. Creditors seeking to recover debts may need guidance on their legal rights and the most effective recovery routes. Directors and stakeholders often require help navigating their duties and potential risks during financial distress. Complex court applications, negotiations with creditors, and the possibility of asset recovery also frequently require specialist legal support to ensure compliance and protect interests.
Local Laws Overview
Jersey's restructuring and insolvency laws are governed principally by the Companies (Jersey) Law 1991, the Bankruptcy (Désastre) (Jersey) Law 1990, and associated case law. Key procedures include:
- Désastre: Similar to liquidation, this is a statutory process where a court can declare a person or company bankrupt, appointing the Viscount (a court officer) to collect and distribute assets to creditors.
- Creditors' Winding Up: A voluntary liquidation process initiated by a company when it is insolvent, usually after a shareholders' resolution and a meeting of creditors.
- Schemes of Arrangement: These court-approved agreements allow a company to restructure debt and make arrangements with creditors while still operating.
- Remedies for Creditors: Creditors have specific rights to pursue claims against insolvent individuals or entities, including the ability to apply for a désastre or take security enforcement steps.
- Director Duties: Directors must consider the interests of creditors during periods of financial difficulty and can incur personal liability if they act improperly.
The legal framework is designed to support both rescue and creditor recovery, depending on the circumstances.
Frequently Asked Questions
What is the difference between désastre and creditors' winding up in Jersey?
Désastre is a court-driven bankruptcy procedure, overseen by the Viscount, while creditors' winding up is a voluntary process initiated by company shareholders and creditors. Both lead to the realization of assets and distribution to creditors, but they have different triggers and processes.
Who can apply to put a company into désastre?
Creditors owed at least 3,000 pounds or the company itself can apply to the Royal Court for a declaration of désastre if the company cannot pay its debts as they fall due.
What is a scheme of arrangement?
A scheme of arrangement is a court approved agreement that allows a financially distressed company to come to binding arrangements with creditors or members, often used to restructure debts or business operations while continuing to trade.
Are directors personally liable for company debts in insolvency?
Directors are generally not personally liable for company debts. However, they may be held personally responsible for losses if they trade wrongfully or fraudulently, or if they breach their duties during insolvency.
What happens to employees if a company becomes insolvent in Jersey?
Employee claims, such as unpaid wages, holiday pay, and redundancy, are ranked as preferential debts in insolvency proceedings, meaning they are paid ahead of many other types of creditors, subject to statutory limits.
Can secured creditors enforce their security during insolvency?
Yes, secured creditors typically retain priority over their secured assets even during insolvency and can enforce security independently of court processes, subject to proper notices and compliance.
How are creditors ranked in Jersey insolvency proceedings?
Creditors are ranked as secured, preferred (such as employees and certain taxes), and unsecured. Secured creditors are paid first from secured assets, followed by preferred creditors, and then unsecured creditors share in any remaining assets.
What is the role of the Viscount in Jersey insolvency?
The Viscount is an officer of the Royal Court responsible for administering the désastre process, including gathering and distributing the insolvent party’s assets, investigating conduct, and reporting to creditors and the court.
Can an insolvent company continue to trade during restructuring?
Trading may continue during some restructuring processes, such as schemes of arrangement, if it is in the creditors’ best interest or if approved as part of a rescue plan. In formal insolvency like désastre, trading usually ceases except as needed for asset realization.
What options exist for an individual facing personal insolvency in Jersey?
Individuals may enter voluntary arrangements with creditors, seek a remediation order, or be declared en désastre. Legal advice is important to choose the most suitable option based on assets, debts, and personal circumstances.
Additional Resources
Several resources can provide further information or assistance with restructuring and insolvency issues in Jersey:
- The Viscount’s Department - Administrator for court-appointed insolvencies and Désastre proceedings in Jersey.
- Jersey Financial Services Commission (JFSC) - Regulator for financial services, including insolvency practitioner registration.
- Government of Jersey’s Citizens Advice Bureau - Offers free, confidential guidance for individuals on debt and insolvency matters.
- Jersey Law Society - Directory of qualified law firms and practitioners experienced in restructuring and insolvency.
- Institute of Directors, Jersey Branch - Information for company directors including support resources for financial distress.
Next Steps
If you believe you may be facing insolvency or require restructuring advice in Jersey, start by gathering relevant financial information and any correspondence with creditors or courts. Consider contacting a Jersey-based legal professional with expertise in restructuring and insolvency to review your situation promptly. A lawyer can provide tailored advice, help you understand your duties or rights, and work with you on the most effective path forward, whether this is business rescue, asset protection, or creditor recovery. Acting quickly and getting legal advice early can help preserve options and improve outcomes in these complex situations.
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.