Best Restructuring & Insolvency Lawyers in Shiraz

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Mostasharat Zeyghami
Shiraz, Iran

Founded in 2010
50 people in their team
Persian
English
Advocate Mohammad Sadegh Zeighami is an Iranian lawyer who achieved his bachelor degree in law from Shiraz University 2003, then continued his studies and achieved his master degree in Private Law 2010.Since then, he’s been practicing his legal profession as a lawyer in Iran in all types of...
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About Restructuring & Insolvency Law in Shiraz, Iran

Restructuring and insolvency law in Shiraz, Iran, is a specialized field that focuses on helping individuals and businesses manage financial distress. The process includes restructuring debt obligations, negotiating with creditors, or, when necessary, initiating formal insolvency proceedings such as bankruptcy. Iranian law addresses both corporate and individual insolvency, with specific procedures designed to maximize asset recovery for creditors while providing protections for honest debtors.

Shiraz, as a major economic center in southern Iran, hosts a variety of businesses across industries such as manufacturing, agriculture, and services. With economic fluctuations, some businesses or individuals may face challenges in meeting their financial commitments. Restructuring and insolvency processes provide legal pathways to resolve these issues, either by reorganizing operations to return to profitability or by liquidating assets fairly to repay debts.

Why You May Need a Lawyer

There are numerous situations where engaging a lawyer with experience in restructuring and insolvency is essential. Common scenarios include:

  • Facing serious financial difficulties and being unable to meet debt obligations.
  • Receiving demands or legal notices from creditors, banks, or suppliers.
  • Wishing to negotiate payment terms or restructure business debts.
  • Needing guidance on whether to pursue restructuring or insolvency proceedings.
  • Seeking advice on asset protection or liability limitation strategies.
  • Managing complex financial settlements among partners, shareholders, or creditors.
  • Ensuring compliance with local laws and avoiding liabilities for directors and managers.

Legal advice helps clarify your rights, obligations, and the best strategy tailored to your unique circumstances. A lawyer can represent your interests during negotiations, prepare and review settlement agreements, and guide you through court proceedings if necessary.

Local Laws Overview

Iran's legal framework for restructuring and insolvency is defined by the Commercial Code, the Law for Prevention of Bankruptcy of Producers and Industrial Units, and other related regulations. Key features relevant to Shiraz include:

  • Both voluntary and involuntary insolvency proceedings exist. Creditors or debtors themselves can initiate bankruptcy claims in court.
  • The Commercial Court handles insolvency cases. Procedures involve submission of a petition, verification of insolvency status, plus appointment of administrators or liquidators.
  • Restructuring may involve formal reorganization agreements with court approval, allowing debtors to continue operations under revised terms.
  • Certain professions and industries are subject to specific statutes and regulatory bodies regarding insolvency procedures.
  • Personal bankruptcy is possible, but the law focuses primarily on corporate insolvency. Individuals must meet specific criteria for personal insolvency protection.
  • Recent economic reforms have made attempts to modernize and streamline procedures, but local customs and court practices in Shiraz may impact timelines and outcomes.
  • Foreign creditors and cross-border insolvency can add complexity, often requiring specialized legal support.

Frequently Asked Questions

What is the difference between restructuring and insolvency?

Restructuring refers to reorganizing a company or individual's finances to allow debts to be paid over time or under new terms, ideally avoiding formal insolvency. Insolvency is a legal state where liabilities exceed assets or the person or business is unable to meet debts as they fall due, often leading to bankruptcy proceedings.

Who can file for insolvency in Shiraz, Iran?

Both individuals and companies facing genuine financial hardship can file for insolvency. Creditors may also petition the court to declare a debtor insolvent if payments have been missed for a specified period.

What steps are involved in the insolvency process?

The process typically involves submitting a petition to the relevant Commercial Court, an evaluation of the debtor's financial affairs, meetings with creditors, and, if confirmed, either liquidation or reorganization of assets under court supervision.

How long do restructuring or insolvency proceedings usually take?

The timeline varies depending on case complexity, court workload, and cooperation among the parties. Straightforward cases might resolve in a few months, but complicated matters can extend over a year.

Are personal assets at risk during business insolvency?

Generally, only business assets are involved in company insolvency, unless there is evidence of fraud, mismanagement, or personal guarantees, in which case personal assets may be at risk.

Can debts be written off completely in insolvency?

Debts may be partially or fully discharged depending on the insolvency outcome, court decisions, and creditor agreements. However, some debts (such as taxes or employees’ wages) might have priority and must be addressed.

Do I have to notify all my creditors during restructuring?

Yes, transparency is essential. All known creditors should be notified and given the chance to participate in the process, as required by law.

What alternatives exist to formal insolvency?

Alternatives include private negotiations with creditors, debt restructuring plans, informal settlements, and asset sales or mergers. A lawyer can help assess the best route for your circumstances.

Are court decisions on insolvency public in Shiraz?

Yes, insolvency decisions are typically published, ensuring transparency and notifying interested parties, though some sensitive company or personal information may be protected.

How can a lawyer help during restructuring or insolvency?

A lawyer can clarify your rights, help prepare the necessary legal documents, negotiate with creditors, represent you in court, and ensure compliance with local laws, reducing the risk of costly mistakes.

Additional Resources

If you are dealing with potential restructuring or insolvency concerns in Shiraz, consider reaching out to these resources for information or initial support:

  • The Commercial Court of Shiraz - handles all formal restructuring and insolvency cases.
  • Fars Bar Association - provides listings for qualified legal professionals specializing in commercial law.
  • Iran Chamber of Commerce, Industries, Mines and Agriculture (Shiraz branch) - offers business advisory services and guidance on legal compliance.
  • Local business support centers and economic development agencies may provide relevant training or mediation services.

Next Steps

If you need legal assistance with restructuring or insolvency in Shiraz, here is how you can proceed:

  • Gather all relevant financial documents, such as contracts, loan agreements, payment records, and correspondence with creditors.
  • Prepare a brief summary of your current financial situation and the challenges you are facing.
  • Contact a lawyer specializing in commercial law, insolvency, or restructuring based in Shiraz or familiar with local court practices.
  • Arrange for an initial consultation to discuss your options, including formal proceedings, negotiation, or alternative dispute resolution.
  • Follow your lawyer’s advice on next steps, such as preparing and submitting legal documents, or reaching out for mediation or negotiations.
  • Stay informed and involved in the process to protect your interests and maximize your chances of a favorable resolution.

Seeking timely legal advice can make a significant difference. If you are uncertain, act proactively rather than waiting for the situation to escalate.

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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.