Best Restructuring & Insolvency Lawyers in Panama City

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AGROUP CONSULTING ☑️
Panama City, Panama

Founded in 2021
20 people in their team
German
English
Spanish
Russian
Agroup Consulting is Panama’s LEADING firm for immigration services. With a 98% visa approval rate in just 3 days, they are the trusted partner for expats moving to Panama. Languages: English, German, Russian, more. What’s the secret behind their 98% approval rate? We will explain you...
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Mata & Pitti | law firm | Panama
Panama City, Panama

Founded in 1984
10 people in their team
Spanish
English
About our firmFounded in 1984, Mata & Pitti is a Panama-based law firm with over 40 years of experience serving international clients seeking to benefit from Panama’s legal, corporate, and immigration opportunities.Our firm has developed strong expertise in immigration law and real estate...
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Kraemer and Kraemer
Panama City, Panama

Founded in 2008
45 people in their team
Spanish
English
Portuguese
Kraemer & Kraemer is a law firm in the Republic of Panama, assisting companies and individual investors with establishing commercial operations in Panama, from basic to regulated activities, as well as general legal affairs within Immigration, Taxation, Business, Real Estate, Trademarks,...
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PGS ATTORNEYS

PGS ATTORNEYS

15 minutes Free Consultation
Panama City, Panama

Founded in 2008
25 people in their team
English
Spanish
PGS Attorneys is a full-service law firm. The firm specializes in corporate and commercial legal services, immigration, real estate, litigation, estate planning, protection, and tax law. Their group also includes a realty company. Our legal practice includes areas such as: Real Estate Legal...
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Molina & Co
Panama City, Panama

Founded in 1980
8 people in their team
English
Molina & Co. Law and Business Strategy ConsultantsAt Molina & Co., we stand at the forefront of law and business strategy in the Republic of Panama, renowned for our leadership in corporate and legal consultancy. Our expertise is rooted in the comprehensive development and management of...
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Universal Services

Universal Services

15 minutes Free Consultation
Panama City, Panama

Founded in 2019
3 people in their team
English
Spanish
At Universal Services, we're your trusted partners for comprehensive legal and language solutions, catering to the diverse needs of both corporations and individuals engaged in business within and beyond Panama.We are dedicated to offering consistent legal assistance to both local Panamanian...
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Lac Legal

Lac Legal

30 minutes Free Consultation
Panama City, Panama

Founded in 2016
30 people in their team
Spanish
English
LAC GROUP es un grupo corporativo especializado en brindar soluciones legales, contables y de consultoría. Nuestro enfoque integral nos permite ofrecer asesoría estratégica y personalizada a empresas e individuos en Panamá, América, Europa y Asia, asegurando cumplimiento normativo,...
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Founded in 2000
10 people in their team
Spanish
English
Kovalenko & Vera is a Panamanian law firm that stands out for its commitment and dedication to providing a personalized service to all its national and international clients, in terms of legal representation and advice.Kovalenko & Vera offers a range of legal services in Panama with the...
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Lamboglia Law
Panama City, Panama

Founded in 2022
50 people in their team
Spanish
English
Attorneys in panama with more than 30 years of experience. Specialized in immigration, civil, labor, environmental, corporate and real estate law.Attorneys in panama with more than 30 years of experience. Specialized in immigration, civil, labor, environmental, corporate and real estate...
Attorneys-at-law Lombardi Aguilar Group

Attorneys-at-law Lombardi Aguilar Group

30 minutes Free Consultation
Panama City, Panama

Founded in 2006
5 people in their team
Spanish
English
German
French
Italian
Lombardi Aguilar Group is an international business law firm in Panama. The attorneys at our firm provide their clients fast, innovative and effective solutions to their business challenges. The firm provides services to individual and corporate clients in Panama as well as in the Americas, Europe,...
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About Restructuring & Insolvency Law in Panama City, Panama

Restructuring and insolvency law in Panama City addresses the legal processes and frameworks that support individuals and businesses facing financial distress. The primary goal of these laws is to provide mechanisms for struggling debtors to reorganize their financial affairs, protect the rights and interests of creditors, and ensure an orderly process for debt repayment or liquidation when necessary. In Panama, both individuals and companies can seek relief through structured legal frameworks that help to maximize asset value and maintain economic stability within the market.

Why You May Need a Lawyer

There are several situations where obtaining legal assistance in restructuring and insolvency matters is crucial. A few common scenarios include:

  • Facing persistent difficulties in meeting financial obligations
  • Receiving legal demands or threats from creditors
  • Experiencing cash flow shortages that impact business operations
  • Being a creditor seeking to recover outstanding debts from an insolvent debtor
  • Needing advice on the best strategy to restructure debt or assets
  • Seeking protection from creditors through formal insolvency proceedings
  • Wishing to understand rights and obligations under local insolvency laws
  • Needing to safeguard valuable assets during financial distress

Lawyers specializing in restructuring and insolvency can provide tailored advice, represent clients in court or negotiations, and help design solutions that minimize loss while respecting applicable laws.

Local Laws Overview

In Panama City, restructuring and insolvency are mainly governed by the Law 12 of 2016, known as the Insolvency Law. This law introduced substantial changes designed to modernize the insolvency process, offering fair and transparent procedures for both debtors and creditors. Key aspects of local law include:

  • Preventive Arrangements: Debtors can negotiate with creditors to restructure debts and avoid liquidation, thus preserving their business operations.
  • Reorganization Proceedings: Companies may seek court protection to reorganize their affairs, suspend debt payments, and continue trading while a plan is developed and approved by creditors.
  • Liquidation Proceedings: If reorganization is unfeasible, the company or individual's assets may be liquidated under court supervision to repay creditors as fairly as possible.
  • Automatic Stay: Once a formal process is initiated, an automatic stay is put in place that temporarily halts creditor actions and asset seizures.
  • Priority of Claims: The law sets out an order of preference among creditors to ensure fair payment distribution during liquidation.

These processes are overseen by specialized insolvency courts and appointed trustees, with a focus on transparency and equitable treatment of stakeholders.

Frequently Asked Questions

What is the difference between restructuring and insolvency in Panama?

Restructuring refers to legal processes intended to reorganize debts or operations, allowing a financially distressed business or individual to regain stability. Insolvency occurs when a debtor is unable to meet their payment obligations and may lead to liquidation under the law.

Can individuals file for insolvency in Panama, or is it just for businesses?

Both individuals and businesses can initiate insolvency proceedings under Panamanian law. Different rules or processes may apply depending on the size and nature of the debtor.

How long does a restructuring or insolvency process usually take in Panama?

The length of proceedings can vary significantly. A straightforward preventive arrangement may be resolved within a few months, while complex reorganization or liquidation procedures can last a year or more.

Is it possible to keep operating my business during a reorganization?

Yes, the law encourages continuity of business during reorganization so the debtor can generate revenue and potentially preserve value, under the supervision of the court and appointed officials.

What happens to my debts during insolvency proceedings?

Existing debts may be renegotiated, suspended, or, in liquidation, paid off through asset sales. Creditors are typically prohibited from initiating new collection actions while proceedings are ongoing.

Will insolvency affect my credit rating or ability to do business in the future?

Entering insolvency can have negative consequences for creditworthiness and future business prospects, but successfully completing a restructuring can show financial responsibility and improve long-term outcomes.

Do I need to notify all creditors if I start an insolvency process?

Yes, formal notification and involvement of all creditors is a key requirement of insolvency proceedings in Panama to ensure transparency and fair treatment.

Are there alternatives to formal insolvency proceedings?

Yes, debtors and creditors can negotiate out-of-court settlements or payment plans without engaging the court system, although these may lack some of the protections of formal proceedings.

Who supervises the insolvency process in Panama?

Specialized insolvency courts and appointed trustees, known as "síndicos" or "administradores concursales," supervise and administer the process to ensure compliance with the law.

What are my rights as a creditor in an insolvency or restructuring case?

Creditors have the right to be notified, participate in proceedings, vote on restructuring plans, object to unfair practices, and receive payments according to the priority order established by law.

Additional Resources

If you require more information or are considering legal steps regarding restructuring and insolvency matters in Panama City, you may find assistance from the following resources:

  • Judicial Branch of Panama: Oversees insolvency courts and publishes information on legal procedures and rights.
  • Superintendency of Banks of Panama: Regulates and supervises financial institutions, which often play key roles in insolvency cases.
  • Chamber of Commerce, Industry and Agriculture of Panama: Provides guidance and resources for local businesses facing financial challenges.
  • Local Law Firms Specializing in Insolvency: Many Panamanian law firms offer initial consultations for companies and individuals navigating financial distress.

Next Steps

If you are experiencing financial distress or are involved in a restructuring or insolvency situation in Panama City, the best course of action is to consult with a qualified lawyer who understands local insolvency law. Consider preparing a summary of your financial situation and relevant documents before your consultation. A legal expert can advise you on your options, represent you in negotiations or court, and help develop a strategy that minimizes risk and maximizes outcomes for you or your business. Early legal intervention often leads to better results, so do not hesitate to seek assistance as soon as financial difficulties arise.

Lawzana helps you find the best lawyers and law firms in Panama City 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 Panama City, Panama - 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.