Best Restructuring & Insolvency Lawyers in Montevideo

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Biz Latin Hub
Montevideo, Uruguay

Founded in 2014
500 people in their team
Spanish
English
The Biz Latin Hub Group was founded in 2014 through a partnership between Mr. Craig Dempsey and Mr. David Wright. We have strong and uncompromising focus on service delivery, our Group has unfurled from a single office in Bogota, Colombia, to becoming a multinational company encompassing key global...
Pittaluga Abogados
Montevideo, Uruguay

Founded in 2000
50 people in their team
Spanish
English
PITTALUGA enjoys great international prestige in the field of Intellectual Property, acquired thanks to the successful advice it has provided throughout the years to major global companies.More recently, with the aim of keeping up with the increasingly challenging requirements of our clients, we...

Founded in 2000
50 people in their team
Spanish
English
We are a solid team with the objective of providing specialized Legal Services, offering a traditional proposal adjusted to the requirements and demands of today.In recent years we have evolved in line with market demands, adjusting our processes to current technological platforms. We are...
Castellan Abogados
Montevideo, Uruguay

Founded in 1981
50 people in their team
Spanish
English
About the FirmWe are a passionate team committed to excellence. With a solid track record of more than four decades in the market, we have evolved and grown together with the local and foreign companies we serve.Our commitment is clear: to facilitate our clients' business. We work tirelessly to...
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About Restructuring & Insolvency Law in Montevideo, Uruguay

Restructuring and insolvency law in Montevideo, Uruguay, refers to a set of legal processes that assist individuals and businesses facing financial difficulties. The aim is to provide solutions, whether through reorganizing debt, negotiating with creditors, or, when necessary, liquidating assets to pay outstanding obligations. Uruguay’s legal system balances the interests of debtors and creditors, providing fair procedures for both parties and seeking to preserve viable businesses where possible. These laws are primarily guided by national legislation but are implemented in Montevideo’s local courts, making local legal knowledge critical.

Why You May Need a Lawyer

Seeking legal help for restructuring and insolvency matters in Montevideo, Uruguay, is critical in various situations. Common circumstances include:

  • When your business is no longer able to meet its financial obligations and you are considering bankruptcy
  • If you wish to negotiate new terms with your creditors to prevent insolvency
  • When you are a creditor seeking to recover debts from an insolvent business or individual
  • If your company wants to explore reorganization to avoid liquidation
  • When dealing with cross-border insolvency issues involving assets or parties in Uruguay
  • If you need advice on personal bankruptcy or managing overwhelming debt as an individual
  • To understand your rights and obligations under local insolvency and restructuring laws
  • To protect your interests during court-supervised restructuring or liquidation proceedings

A specialized lawyer ensures all actions taken comply with local law and maximize your legal protections, whether you are a debtor or a creditor.

Local Laws Overview

Restructuring and insolvency law in Montevideo is mainly governed by Ley N° 18.387, known as the Bankruptcy Law of Uruguay. This law provides mechanisms for both restructuring and liquidation of debtors facing financial distress. Below are some key legal aspects:

  • Voluntary and involuntary proceedings: Insolvency processes can be initiated by the debtor or by creditors. The law details the requirements and procedures for both cases.
  • Reorganization (Concurso de Acreedores): Allows a business or individual to propose a plan to restructure debts under court supervision. If approved by the majority of creditors and the court, it can prevent bankruptcy.
  • Liquidation (Quiebra): If restructuring is not possible, liquidation proceedings lead to the orderly sale of assets to pay creditors.
  • Asset protection and creditor hierarchy: The law establishes an order of priority for paying creditors during insolvency, including secured and unsecured claims.
  • Role of the court: Local commercial courts in Montevideo oversee proceedings and issue rulings, ensuring transparency and protection of interests.
  • Cross-border insolvency: While international cases may involve additional complexity, Uruguayan law provides mechanisms to cooperate with foreign courts and insolvency representatives.

Navigating these processes requires a clear understanding of procedural requirements, documentation, and potential consequences, underscoring the importance of expert legal advice.

Frequently Asked Questions

What is the difference between restructuring and liquidation?

Restructuring seeks to reorganize debts and business operations so a struggling individual or company can continue to operate, while liquidation involves selling assets to pay creditors and closing the business.

Can a business avoid liquidation in Uruguay?

Yes, with court-supervised restructuring (concurso), businesses may negotiate debt repayment plans with creditors to continue operating and avoid liquidation.

Who can initiate insolvency proceedings?

Both debtors and creditors in Montevideo may initiate insolvency proceedings, depending on the circumstances.

How are creditors’ rights protected?

Uruguayan law establishes a strict order of priority for creditor payments and provides a transparent process overseen by the courts.

What happens to employment contracts if a company is insolvent?

Employee claims are typically given higher priority, and specific rules in Uruguayan law protect wages and severance during insolvency or liquidation.

Is it possible to restructure personal debt?

Yes, individuals can also access restructuring procedures to reorganize personal debts and prevent liquidation of personal assets.

How long does the insolvency process take?

The duration depends on the complexity of the case, number of creditors, and court schedules, but proceedings can often take several months or longer.

Are directors or business owners personally liable for debts?

Generally, companies have limited liability, but exceptions exist if fraud or wrongful conduct by directors is proven.

What documents are needed to start an insolvency proceeding?

Required documents include financial statements, a list of creditors, contracts, and relevant accounting records, among others.

Can foreign businesses access insolvency protection in Uruguay?

Foreign businesses with assets or operations in Uruguay can participate in local insolvency proceedings, and local laws also provide for cooperation with foreign insolvency processes.

Additional Resources

If you need further guidance or support related to restructuring and insolvency in Montevideo, consult the following:

  • Uruguayan Judicial Branch (Poder Judicial) - for court-related information and procedures
  • Banco Central del Uruguay - for regulatory information on financial and insolvency matters
  • Local Bar Associations (Colegio de Abogados del Uruguay) - to find qualified lawyers specializing in restructuring and insolvency
  • Ministry of Economy and Finance - for business regulations, public registries, and insolvency statistics

Next Steps

If you believe you may need legal assistance with restructuring or insolvency in Montevideo, start by gathering all relevant financial documents, including balance sheets, debt lists, contracts, and correspondence with creditors. Consider scheduling a consultation with a lawyer who specializes in this area of law. They can evaluate your situation, explain your options, and help you navigate the legal process. Acting promptly can help protect your rights and increase the likelihood of a favorable outcome, whether you are facing financial difficulties or seeking to collect a debt.

Remember, restructuring and insolvency laws are complex and highly procedural. Professional legal advice will ensure you make informed decisions and take the right steps for your circumstances.

Lawzana helps you find the best lawyers and law firms in Montevideo through a curated and pre-screened list of qualified legal professionals. Our platform offers rankings and detailed profiles of attorneys and law firms, allowing you to compare based on practice areas, including Restructuring & Insolvency, experience, and client feedback. Each profile includes a description of the firm's areas of practice, client reviews, team members and partners, year of establishment, spoken languages, office locations, contact information, social media presence, and any published articles or resources. Most firms on our platform speak English and are experienced in both local and international legal matters. Get a quote from top-rated law firms in Montevideo, Uruguay - quickly, securely, and without unnecessary hassle.

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.