Best Restructuring & Insolvency Lawyers in Munich

Share your needs with us, get contacted by law firms.

Free. Takes 2 min.

Rechtsanwalt Eike Fietz
Munich, Germany

Founded in 2021
English
Rechtsanwalt Eike Fietz is a distinguished German-qualified corporate and commercial lawyer with over two decades of transactional experience. His practice encompasses a broad spectrum of corporate and commercial matters, including mergers and acquisitions (M&A), joint ventures, tax-driven...
schirach.law
Munich, Germany

English
Schirach.law, based in Munich, Germany, specializes in white-collar and tax criminal law, offering comprehensive defense and advisory services to corporate executives and high-profile individuals. The firm is recognized for its innovative approach, combining strategic legal expertise with a deep...
Sidley Austin (CE) LLP
Munich, Germany

English
Sidley Austin (CE) LLP, located in Munich, Germany, is a prominent extension of Sidley Austin LLP's global network, which encompasses over 2,300 lawyers across 21 offices worldwide. The Munich office specializes in private equity, mergers and acquisitions, restructuring, finance, and tax, offering...
Munich, Germany

English
Astera Legal is a boutique law firm based in Germany, specializing in complex national and international financing structures. The firm offers expertise in acquisition financing, particularly for private equity transactions, as well as strategic corporate financing. Its clientele includes private...
Weil, Gotshal & Manges LLP
Munich, Germany

Founded in 1931
1,100 people in their team
English
German
Founded in 1931, Weil has provided legal services to the largest public companies, private equity firms and financial institutions for the past 90 years. Widely recognized by those covering the legal profession, Weil’s lawyers regularly advise clients globally on their most complex Litigation,...
Stabit Advocates
Munich, Germany

Founded in 2000
173 people in their team
German
English
French
Chinese
Stabit Advocates LLP (https://www.stabitadvocates.com) is one of the top law firms in the world and stands as a beacon of legal excellence, recognized as one of the top law firms in East Africa, Africa and Globally with over 75 practice areas. Our firm is synonymous with top-tier legal expertise,...
AS SEEN ON

About Restructuring & Insolvency Law in Munich, Germany

Restructuring and insolvency law in Munich, Germany is a vital area of legal practice that helps businesses and individuals manage financial distress. Munich, as a major economic hub in Germany, sees a dynamic business environment where companies may face challenges requiring reorganization or, in severe cases, insolvency proceedings. German law provides structured procedures to help financially troubled entities, protect creditors, and preserve viable businesses when possible. Legal advisors play a central role in navigating the complex rules and ensuring compliance throughout the process.

Why You May Need a Lawyer

There are several common situations where seeking professional legal support in restructuring and insolvency is crucial:

  • Your business is facing financial difficulties and you want to explore restructuring options to recover.
  • You are a business owner considering filing for insolvency to avoid further liabilities.
  • You are a creditor trying to assert your rights and recover debts from an insolvent company or individual.
  • You are an investor or stakeholder involved with a financially struggling company in Munich.
  • You need advice on directors’ duties and legal risks during the crisis period.
  • You wish to acquire assets from insolvent companies in compliance with local law.

In each of these scenarios, a qualified lawyer ensures your legal interests are protected, helps you understand your obligations, and guides you through the judicial and administrative processes required by German law.

Local Laws Overview

The legal framework for restructuring and insolvency in Munich is shaped by German federal law, primarily the German Insolvency Code (Insolvenzordnung or InsO), which applies uniformly across the country. Munich courts and insolvency administrators are experienced in handling complex, high-value cases typical for a major city. Key aspects include:

  • Insolvency Filing Obligation: Directors of companies in financial distress must file for insolvency without undue delay - typically within three weeks of insolvency or over-indebtedness being apparent.
  • Pre-insolvency Restructuring: The StaRUG law (as of 2021) enables pre-insolvency restructuring, offering an option to reorganize outside of formal insolvency proceedings.
  • Insolvency Proceedings: These are court-supervised processes where assets are collected, job protections considered, and creditors ranked and paid according to statutory priorities.
  • Duties of Management: Directors have strict personal liability if they fail to fulfill insolvency filing duties or breach their obligations toward creditors.
  • Debt Relief for Individuals: Non-business individuals can seek personal restructuring and debt relief under simplified rules.
  • Role of Courts and Insolvency Administrators: The insolvency courts in Munich appoint independent administrators to safeguard the process, identify assets, and represent creditor interests.

Frequently Asked Questions

What is the difference between restructuring and insolvency?

Restructuring aims to reorganize a business to avoid insolvency, often through negotiated agreements with creditors or financial adjustments. Insolvency, on the other hand, involves formal court proceedings when a debtor cannot pay debts as they come due or is over-indebted.

When must a company in Munich file for insolvency?

German law requires directors to file for insolvency within three weeks after the company becomes insolvent (unable to pay debts) or over-indebted (liabilities exceed assets). Failing to file in time can lead to personal liability and criminal penalties.

What is the role of the insolvency administrator?

The insolvency administrator, appointed by the court, manages the debtor’s assets, sells non-essential assets, examines claims, and distributes funds to creditors according to legal priorities.

Can a business keep operating during insolvency proceedings?

Yes, in many cases the business can keep operating during proceedings, with oversight by the court and the insolvency administrator, especially if continuation benefits creditors and may save jobs.

Is it possible to avoid bankruptcy through restructuring?

Yes, thanks to the StaRUG framework and voluntary arrangements with creditors, businesses can restructure debts before formal insolvency is necessary, preserving value and relationships.

How are creditors ranked in insolvency proceedings?

Claims are ranked by law, with secured creditors and preferential claims paid first, followed by ordinary unsecured creditors. Shareholders are usually paid last, if at all.

Are individuals eligible for debt relief in Germany?

Yes, individuals can apply for personal debt relief through court-supervised insolvency proceedings, leading to a discharge of remaining debt after a set period, usually three years under recent reforms.

Can I buy assets from an insolvent business?

Yes, asset sales are common in insolvency to realize value for creditors. Purchasers should conduct legal due diligence and understand that asset-only deals seldom include liabilities.

What risks do company directors face during insolvency?

Directors face personal liability if they fail to file for insolvency promptly, make unauthorized payments, or breach fiduciary duties. Seeking early legal advice is vital.

Do I need to use a lawyer for insolvency matters in Munich?

While not always mandatory, having a lawyer is highly recommended due to the complex regulations, significant risks, and need for expert negotiation and representation.

Additional Resources

If you need further support or information regarding restructuring and insolvency in Munich, the following organizations can be helpful:

  • Amtsgericht München - Insolvency Court: The official court handling insolvency cases in Munich.
  • Bundesverband der Deutschen Inkasso-Unternehmen (BDIU): Association for debt collection and insolvency professionals.
  • Chamber of Industry and Commerce for Munich and Upper Bavaria: Offers support to businesses in financial distress and references for reputable advisors.
  • German Bar Association (Deutscher Anwaltverein): Find legal professionals specialized in insolvency and restructuring.
  • Consumer advice centers (Verbraucherzentrale): Assists individuals facing personal insolvency.

Next Steps

If you are facing potential financial difficulties or insolvency in Munich, consider the following steps:

  • Assess your financial situation as early as possible to explore all available options before matters worsen.
  • Document all financial transactions and communications relevant to your business or personal affairs.
  • Reach out to a qualified restructuring and insolvency lawyer in Munich for a confidential initial consultation. An early proactive approach can help preserve assets and minimize potential liabilities.
  • If you are a creditor, act quickly to protect your interests and register your claims with the appointed administrator as soon as permitted.
  • Consult the recommended resources and organizations for additional information and support.

Remember, insolvency and restructuring law can be complex with serious legal consequences. Expert legal guidance will give you the best chance of a positive outcome.

Lawzana helps you find the best lawyers and law firms in Munich 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 Munich, Germany - 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.