Best Restructuring & Insolvency Lawyers in La Plata

About Restructuring & Insolvency Law in La Plata, Argentina

Restructuring and insolvency law in La Plata is governed mainly by national insolvency legislation and applied by the local civil and commercial courts of the Province of Buenos Aires. The system distinguishes between reorganization procedures aimed at rescuing viable businesses - commonly known as concurso preventivo - and liquidation procedures - commonly known as quiebra. Proceedings regulate how creditors are informed, how claims are verified, and how assets are managed and distributed. Local practice combines court-supervised processes with frequent out-of-court workouts and negotiations, especially for small and medium enterprises. Professional trustees - síndicos - and the commercial judiciary play central roles in supervising the process.

Why You May Need a Lawyer

Insolvency and restructuring matters are legally complex and time sensitive. A specialized lawyer can help you understand options, protect rights and reduce risks. Common situations that require legal help include:

- A company that cannot pay debts when due or faces a looming cash-flow crisis.

- Creditor pressure such as enforcement actions, attachment orders, or lawsuits.

- Negotiations with banks, suppliers or landlords about debt repayment, rollovers or concessions.

- Drafting and filing a concurso preventivo petition to seek court protection while reorganizing.

- Defending or asserting creditor claims in a bankruptcy or restructuring process.

- Assessing directors' duties and potential personal liability for continued trading, preferential payments or fraudulent transfers.

- Handling cross-border claims where foreign creditors or assets are involved.

Local Laws Overview

- Governing law: The principal legal framework is national insolvency law. Local commercial courts in La Plata apply this law to supervise reorganizations and bankruptcies, including the concurso preventivo and quiebra procedures.

- Main procedures: Concurso preventivo is a court-supervised reorganization aimed at reaching an agreement with creditors while the company continues operating. Quiebra is a liquidation proceeding where assets are sold and proceeds distributed to creditors under the statutory order of priority.

- Role of the trustee and the court: A judicial trustee - síndico - is appointed to administer the bankruptcy estate or oversee the reorganization. Courts control the process, approve plans and resolve disputes among creditors and the debtor.

- Creditor classification and priority: Argentine practice recognizes secured creditors (with pledges - prenda - or mortgages - hipoteca), privileged creditors (for example, employees and certain tax or social security claims) and unsecured creditors. Secured creditors have enforcement rights but court procedures and insolvency rules may temporarily limit those rights during a reorganization.

- Employee, tax and social security claims: Wage and social security claims typically have a privileged status and are often paid before general unsecured claims. Tax authorities have strong collection powers and often rank high in priority.

- Out-of-court restructurings: Parties often prefer negotiated, out-of-court agreements for speed and confidentiality. Such agreements require careful structuring to avoid actions that could later be challenged in court as preferential or fraudulent.

- Directors and third-party liability: Directors must avoid actions that worsen creditors' positions once insolvency is foreseeable. Improper conduct can lead to civil liability and in certain cases criminal exposure. Legal advice is essential at the first signs of distress.

- Cross-border issues: Recognition and coordination of foreign insolvency proceedings are complex. Local assets must typically be dealt with under Argentine procedures, so foreign creditors should consult local counsel.

Frequently Asked Questions

What is the difference between concurso preventivo and quiebra?

Concurso preventivo is a court-supervised reorganization process designed to allow the debtor to propose a plan to creditors while continuing operations. Quiebra is a liquidation proceeding where assets are sold and proceeds distributed to creditors. Concurso aims to preserve value and business continuity; quiebra aims to realize assets to satisfy creditors.

How do I start a restructuring or insolvency process in La Plata?

A restructuring usually begins with the debtor filing a petition with the competent civil and commercial court in La Plata requesting concurso preventivo. The petition must describe the financial situation and propose measures or a plan. Creditors can also file for bankruptcy when they obtain an enforcement title or proof of default, subject to legal requirements.

Can a company continue operating during concurso preventivo?

Yes. One of the main features of concurso preventivo is that the company may continue operating under the supervision of the court and the trustee. Continuing operations helps preserve value while a restructuring plan is negotiated, but court oversight and trustee actions can limit certain operational decisions.

How are creditors treated - who gets priority?

Secured creditors holding pledges or mortgages generally have enforcement rights over collateral. Privileged creditors - typically employees for unpaid wages and social security contributions, and in many cases tax claims - have priority over unsecured creditors. Unsecured creditors are paid after secured and privileged claims according to statutory rules and any approved reorganization plan.

What happens to employees and unpaid wages?

Employee claims for unpaid wages and certain benefits usually have privileged status and are prioritized in the distribution of estate assets. Employment contracts may be affected by reorganization plans, but labor law protections apply and the labor authority can be involved. Consultation with a lawyer and labor specialist is important to manage obligations and avoid sanctions.

Can secured creditors foreclose on collateral during proceedings?

Secured creditors retain rights over their collateral, but an insolvency filing can temporarily limit enforcement to protect the estate and give the reorganization process time. Courts may allow enforcement in certain circumstances, or require treatment of secured claims within an approved plan. Each case depends on the security type and judicial decisions.

Are tax and social security debts treated differently?

Yes. Tax and social security debts are often given privileged treatment and have strong enforcement mechanisms. In practice tax claims may rank high in priority and the tax authority can pursue collection measures. Restructuring plans must address these obligations, and negotiations with the tax authority require specialized advice.

Can company directors be personally liable in insolvency situations?

Directors can face civil liability if they breach duties by, for example, continuing to trade recklessly, making preferential payments to certain creditors, or hiding assets. In some cases, criminal liability may arise for fraud or concealment. Directors should seek legal advice promptly when insolvency risks appear.

How long does a restructuring or bankruptcy take?

Timelines vary widely. An initial filing and early judicial steps can take weeks to months. Full reorganization procedures can take many months or several years depending on complexity, number of creditors and litigation. Liquidation times also depend on asset complexity and market conditions. Expect significant variability.

What are practical alternatives to formal insolvency?

Alternatives include out-of-court workouts with creditors, debt rescheduling or refinancing, partial asset sales, voluntary assignments or negotiated settlements with major creditors. These alternatives can be faster and less costly, but they require creditor cooperation and careful structuring to avoid later disputes.

Additional Resources

- Civil and Commercial Courts of La Plata - the local judicial bodies that hear insolvency and commercial cases.

- Registro Público de Comercio de la Provincia de Buenos Aires - public registry for company filings and corporate records in the province.

- Administración Federal de Ingresos Públicos - AFIP - national tax authority, important for tax claims and negotiations.

- Ministerio de Trabajo, Empleo y Seguridad Social - for labor claims and guidance on employee protections.

- Colegio de Abogados de La Plata or Colegio Público de Abogados de la Provincia de Buenos Aires - local bar associations that can provide referrals to lawyers specialized in insolvency and restructuring.

- Professional trustees - síndicos - and insolvency practitioners registered to act in judicial proceedings.

- Texts of the national insolvency legislation such as Ley N° 24.522 and official court practice guides and precedents used by local courts.

Next Steps

- Act promptly. Insolvency issues are time sensitive and early action can preserve value and reduce liability risks.

- Gather core documents before meeting a lawyer: recent financial statements, tax filings, bank statements, list of creditors with amounts and contact details, employment records, key contracts, and asset registers.

- Contact a lawyer with experience in Argentine insolvency law and local practice in La Plata. Ask about fees, likely timelines and possible strategies for reorganization or liquidation.

- Consider immediate protective measures if creditors are seeking urgent enforcement - your lawyer may advise filing for concurso preventivo or requesting provisional judicial measures.

- Evaluate out-of-court options and negotiate with major creditors where possible. Keep clear records of communications and agreements.

- Avoid making preferential payments or concealing assets once insolvency is foreseeable. Follow your lawyer's instructions to reduce the risk of director liability.

- If you are a creditor, file claims promptly and engage counsel to protect your rights in verification and distribution processes.

Consulting a local insolvency specialist will help you choose the best path for your situation and comply with procedural requirements in La Plata. This guide provides general information and does not replace personalized legal advice.