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This guide explains how restructuring and insolvency matters are handled for individuals and businesses based in Melissia, a suburb of Athens, Greece. Restructuring and insolvency law covers the legal steps available when a company or an individual cannot meet their debts as they fall due. The aim of the legal regime is to provide orderly options for rescuing viable businesses, enabling negotiated debt solutions, and where rescue is not possible, ensuring an equitable liquidation of assets to repay creditors.
In Melissia, matters are governed by national Greek law and by applicable European rules for cross-border cases. Practical administration typically involves local courts and insolvency practitioners based in Athens and the wider Attica region. People in Melissia will therefore interact with national legal processes, local courts and local advisers who are familiar with the Athens commercial and bankruptcy system.
Restructuring and insolvency situations involve complex procedures, strict deadlines and significant legal consequences. You should consider engaging a lawyer if you face any of the following situations:
- You or your business cannot meet payments on loans, suppliers, payroll or taxes and need to assess options including informal workouts, formal restructuring or bankruptcy.
- Creditors have started enforcement actions such as seizure of assets, auction procedures or requests to open insolvency proceedings.
- You want to prepare or negotiate a restructuring plan - either out-of-court or under court supervision - that may involve debt rescheduling, debt reductions or capital reorganisation.
- You are a creditor seeking to protect your rights, file claims, or challenge a debtor’s actions in an insolvency process.
- Your situation raises cross-border issues - for example assets, creditors or company branches in other EU countries - which require coordination under EU insolvency rules.
- You need to evaluate possible criminal or administrative liability related to company management, fraudulent transfers, or failures in accounting and tax obligations.
Lawyers experienced in restructuring and insolvency provide strategy, prepare and file formal petitions and plans, represent clients in court and negotiations, liaise with insolvency practitioners and ensure formal compliance with procedural rules and creditor priorities.
Restructuring and insolvency in Melissia follow the national Greek insolvency framework. Key aspects you should understand are:
- Types of procedures - The regime typically distinguishes between preventive restructuring solutions, corporate reorganisation under court supervision, liquidation of insolvent entities, and special procedures for individuals and small businesses. Preventive procedures aim to preserve going-concern value through negotiated plans, while liquidation focuses on asset realisation.
- Out-of-court workouts - Creditors and debtors often attempt negotiated settlements outside court to avoid the costs and public exposure of formal insolvency. Such workouts may include debt rescheduling, haircuts, or conversion of debt to equity, and they are commonly facilitated by lawyers and financial advisers.
- Court-supervised plans - Where negotiations fail or greater enforceability is needed, a restructuring plan can be submitted to the competent court for confirmation. The court examines fairness among creditor classes and the plan's viability before granting binding effect.
- Appointment of insolvency practitioners - Courts appoint insolvency administrators, liquidators or judicial managers to run the process, realise assets, and distribute proceeds to creditors according to legal priority rules.
- Creditor hierarchy - Secured creditors generally have priority over specific pledged assets, while unsecured creditors share in residual proceeds. Certain claims such as employee wages and outstanding taxes may enjoy preferential treatment under the law.
- Consumer and small business protections - There are specific provisions that recognise the different needs of natural persons and micro enterprises. Special mechanisms may allow debt relief or restructuring adapted to lower-income debtors.
- Cross-border cases - EU insolvency rules and international principles apply when assets, creditors or company interests span multiple jurisdictions. This can affect where proceedings should be opened and how foreign claims are treated.
- Timeline and appeals - Insolvency proceedings are governed by strict procedural deadlines and permit creditor challenges and appeals. Strategic timing of filings can be critical to preserve assets and rights.
Take immediate stock of your finances - prepare a list of creditors, amounts owed, payment due dates, cashflow forecasts and key contracts. Seek an initial consultation with a lawyer experienced in insolvency to assess whether an out-of-court workout, a preventive restructuring, or a formal insolvency filing is appropriate. Acting early increases options and can reduce the risk of enforcement actions.
Yes. Many restructurings start as out-of-court workouts where the debtor negotiates directly with creditors. Out-of-court solutions can be quicker and less costly but require creditor cooperation. If creditors refuse or a binding solution is needed, a court-supervised restructuring may be necessary.
Whether directors or owners become personally liable depends on the company type, personal guarantees and conduct. Limited liability companies usually shield owners from company debts unless they gave personal guarantees or engaged in wrongful or fraudulent conduct. Directors can face liability for wrongful trading or breaches of duty in some circumstances. A lawyer can review your exposure and suggest protective steps.
Timing varies widely - from a few months for straightforward out-of-court settlements or simplified liquidations, to one or more years for complex reorganisations or contested insolvencies. Factors include the size of the estate, asset realisation challenges, creditor disputes and appeals.
Employee claims for unpaid wages and social insurance contributions are often given priority in insolvency distributions. There are also public schemes that in certain circumstances cover outstanding wages and severance when an employer becomes insolvent. Consult a lawyer to confirm entitlements and the best way to file claims.
Secured creditors hold rights over specific assets pledged as collateral. They often can enforce against the collateral directly or assert claims in the insolvency process. The law provides mechanisms for enforcement and for ranking claims against realisations from pledged assets. Negotiations can sometimes result in refinancing or enforcement standstills as part of a restructuring plan.
Both debtors and creditors can propose solutions in practice. Creditors sometimes coordinate a plan, especially where they want to control outcomes. Court rules determine procedural rights and who may submit a plan for confirmation, so lawyer assistance is important to structure any creditor-proposed solution.
An insolvency record can affect access to credit for some time, but the impact depends on the type of procedure and the debtor's subsequent behaviour. Successful restructurings that restore viability can mitigate long-term credit damage, and there are legal mechanisms for rehabilitation of individuals and businesses over time.
Cross-border cases are subject to applicable EU insolvency rules and international private law. Creditors should expect coordination between jurisdictions and potential parallel proceedings. Legal advice that considers both Greek law and the law of other affected countries is essential to protect cross-border claims.
Legal fees vary by the complexity of the case, the lawyer's experience and the services required - from initial advice and negotiation to court representation. Many lawyers offer a fixed-fee initial consultation or phased billing - for example, an assessment and negotiation stage followed by a litigation stage. Be sure to discuss fees, payment terms and whether costs may be recoverable from the estate or in a settlement.
When seeking help in Melissia, consider these types of local and national resources:
- Local bar association - The Athens Bar Association can help you find qualified lawyers who specialise in insolvency and restructuring.
- Courts and registry offices - Information on filing procedures and local court practices is available at the relevant civil and commercial courts in the Athens area that handle insolvency matters.
- Ministry bodies - National ministries responsible for justice and for economy or development publish guidance on insolvency frameworks and reforms.
- Insolvency practitioners and accounting firms - Licensed insolvency administrators, auditors and restructuring advisers can provide valuation, forensic accounting and restructuring support.
- Tax authorities and social security agencies - They provide guidance on outstanding tax and social security obligations and on procedures for claiming and contesting debts in insolvency.
- EU resources - Because Greece is a member of the European Union, EU frameworks and consumer protection bodies can be relevant for cross-border insolvency questions.
If you need legal assistance in Melissia for restructuring or insolvency, follow these practical steps:
- Gather documents - Prepare contracts, recent financial statements, loan agreements, creditor contact information, tax notices and payroll records. Accurate documentation speeds assessment and decision-making.
- Arrange an initial consultation - Contact a lawyer experienced in Greek insolvency and restructuring law. Ask about their experience with cases similar to yours and their approach to fees.
- Assess options - Work with your lawyer to evaluate out-of-court workouts, formal restructuring or insolvency filings. Consider financial, legal and reputational consequences for each path.
- Communicate with creditors - Where appropriate, open negotiations with key creditors early, ideally through legal counsel, to explore stabilising arrangements or standstills while a plan is prepared.
- Plan for employees and statutory claims - Ensure obligations to employees, tax and social security are properly handled and claims are filed in the correct form and time.
- Maintain records of all steps taken - Document negotiations and decisions. Good records support court filings and help protect directors and owners against future liability claims.
Facing restructuring or insolvency is stressful, but prompt, informed action improves outcomes. A qualified local lawyer will explain your legal position, represent your interests before courts and creditors, and help you navigate the process in Melissia and the wider Attica region.
