Best Restructuring & Insolvency Lawyers in Matosinhos

About Restructuring & Insolvency Law in Matosinhos, Portugal

Restructuring and insolvency law in Matosinhos, Portugal is designed to provide options for financially distressed companies and individuals. These laws enable businesses and people to reorganize their assets and liabilities or declare insolvency when they are unable to meet their financial obligations. The region follows the legal framework established by Portuguese national law, with processes implemented locally through courts and professionals situated in Matosinhos. The primary goal of these laws is to preserve viable businesses when possible, ensure fair distribution to creditors, and offer a fresh start for those burdened with insurmountable debt.

Why You May Need a Lawyer

There are several reasons you might need legal assistance with restructuring and insolvency in Matosinhos. Some common situations include:

• You or your business face mounting debts and cannot meet financial commitments.
• Creditors have begun legal proceedings or threatened to seize your assets.
• You wish to negotiate new terms with creditors to avoid formal insolvency.
• Your company requires a formal restructuring to continue operating while addressing debts.
• There are disagreements between partners or shareholders during financial distress.
• You need to understand your legal responsibilities and rights during insolvency or restructuring.
• A customer, supplier, or business partner has declared insolvency, affecting your finances.

Local Laws Overview

Matosinhos, like all Portuguese cities, is governed by the national Insolvency and Corporate Recovery Code (CIRE). This code covers insolvency (for both individuals and businesses) and several pre-insolvency or restructuring procedures, including the PER (Special Revitalization Process) and PEAP (Special Process for Payment Agreement) for individuals. Judicial proceedings are managed by local civil courts, often with the help of court-appointed insolvency administrators.

Key aspects of local restructuring and insolvency law include:

• Clear distinction between restructuring (intended for viable businesses) and insolvency (available when debts are unmanageable and restructuring is not possible).
• Availability of out-of-court workouts for amicable settlements with creditors.
• Structured court processes for asset evaluation, creditor claims, and priority of payments.
• Opportunity for debtors to retain some assets or recover financially via plans approved by the court and creditors.
• Strong protection of certain creditor rights, especially regarding secured and employee claims.
• Personal liability considerations for company directors in cases of wrongful trading or delayed filing for insolvency.

Frequently Asked Questions

What is the difference between restructuring and insolvency?

Restructuring focuses on reorganizing a business or individual's debts to make them more manageable and avoid insolvency. Insolvency occurs when an entity cannot pay its debts and must enter a formal process, often leading to asset liquidation or judicially approved repayment plans.

How do I know if I or my company is insolvent?

You or your company may be considered insolvent if you are unable to pay debts as they fall due or if your liabilities exceed your assets. A lawyer or accountant can help evaluate your financial position under Portuguese law.

Is it possible to keep my business running during restructuring?

Yes, through processes like the Special Revitalization Process (PER), businesses can continue their activity while negotiating with creditors and implementing a recovery plan.

What are the consequences of insolvency for company directors?

Directors have a duty to file for insolvency in a timely manner. Failure to do so may lead to personal liability for company debts or restrictions on future business activity.

Can creditors still pursue me during an insolvency process?

Once formal insolvency is declared, most creditor actions are suspended or consolidated under the court's supervision to prevent unfair preference or asset depletion.

Will I lose all my assets if I declare insolvency?

Not necessarily. Certain assets may be exempt, and both individuals and businesses may be able to retain assets necessary for basic living or to keep operations running, especially if a recovery plan is approved.

How long does the insolvency process take?

The timeline varies depending on complexity, cooperation among parties, and court workload. Procedures can last from several months to a few years.

What is involved in negotiating with creditors?

Negotiations may occur informally or through a court-supervised process. Debtors present their financial situation and payment proposals. Lawyers can assist in ensuring fair and legal agreements.

Can individuals (not just companies) use these laws?

Yes, Portuguese law allows both individuals and companies to use pre-insolvency restructuring and insolvency procedures.

What professional help is required in these processes?

Insolvency administrators, accountants, and lawyers often participate. Legal counsel is crucial to protect your interests and navigate complex rules.

Additional Resources

If you need advice or support regarding restructuring and insolvency in Matosinhos, consider reaching out to:

• The commercial section of the Tribunal Judicial de Matosinhos (local civil court managing insolvency cases)
• Portuguese Bar Association (Ordem dos Advogados) for referrals to licensed lawyers
• Insolvency Administrators (Administradores de Insolvência) for court-appointed administration
• Business associations and chambers of commerce for information and support for struggling businesses
• Public legal advice offices (Gabinetes de Consulta Jurídica) offering low-cost or pro bono consultations

Next Steps

If you are facing financial distress or considering restructuring or insolvency in Matosinhos, Portugal, it is important to act quickly. Here are recommended next steps:

• Assess your financial status thoroughly and gather all relevant documentation related to debts, assets, and liabilities.
• Contact a lawyer specializing in restructuring and insolvency to review your situation and discuss available legal options.
• Consider arranging a consultation with a financial advisor or accountant for a comprehensive overview of your situation.
• Prepare a list of creditors and recent financial transactions to share with your legal advisor.
• Follow legal guidance carefully to ensure timely and proper submission of court documents if needed.
• Engage with the local court or legal aid services if you cannot afford a private lawyer.