Best Restructuring & Insolvency Lawyers in Taiwan

About Restructuring & Insolvency Law in Taiwan

Restructuring and insolvency law in Taiwan is designed to help individuals and businesses deal with financial difficulties, manage debts, and in some cases, start afresh. The law provides various legal mechanisms for companies and individuals to reorganize their debts, reach agreements with creditors, or undergo a formal insolvency process aimed at equitable debt resolution. Taiwan’s legal framework is influenced by civil law traditions, but also incorporates modern procedures to address complex insolvency cases, reflecting best practices and international standards.

Why You May Need a Lawyer

People and businesses may face financial distress due to unpredictable market changes, economic downturns, or internal mismanagement. In such scenarios, engaging a restructuring and insolvency lawyer is critical. Lawyers can help with:

• Assessing legal and financial options before insolvency becomes inevitable
• Negotiating with creditors to avoid litigation or bankruptcy
• Filing for reorganization or bankruptcy under Taiwan law
• Ensuring compliance with complex procedures and court requirements
• Protecting your legal rights throughout the process

Whether you are a debtor seeking relief or a creditor looking to protect your interests, professional legal advice is essential to achieve the best possible outcome.

Local Laws Overview

Taiwan’s primary laws governing restructuring and insolvency are the Company Act, Bankruptcy Act, and the Corporate Reorganization provisions under the same. These laws cover:

• Bankruptcy - both voluntary and involuntary filings by individuals and businesses
• Corporate reorganization for companies capable of recovery
• Compulsory liquidation for insolvent companies beyond repair
• Debt workout mechanisms, including settlements and repayment plans
• Creditor rights, claim registration, and distribution priorities
• Appointment and functions of trustees, administrators, and supervisors

Recent legal reforms have introduced greater transparency, more efficient procedures, and improved creditor protection in insolvency cases. However, navigating local regulations can be complex without experienced legal guidance.

Frequently Asked Questions

What is the difference between restructuring and insolvency in Taiwan?

Restructuring involves reorganizing a company’s debts and operations to restore its financial health, often allowing the business to continue. Insolvency typically refers to a situation where an individual or company is unable to pay debts as they fall due, possibly leading to bankruptcy or liquidation.

Who can file for bankruptcy in Taiwan?

Both individuals and companies can file for bankruptcy. Creditors can also file to force bankruptcy if certain legal criteria are met.

What is corporate reorganization in Taiwan?

Corporate reorganization is a court-supervised process allowing companies to restructure their debts and operations. If successful, it allows the company to continue operating instead of being liquidated.

How long does the insolvency process take?

The process duration varies depending on the complexity of the case, the type of procedure (bankruptcy versus reorganization), and court schedules. Simple cases may resolve in months, while more complex reorganizations can take longer.

Are creditors required to register their claims?

Yes, creditors must file their claims in accordance with courtroom schedules to be eligible for repayment from any distributions made during bankruptcy or reorganization.

What happens to company employees in insolvency cases?

Employee wage claims are given priority in distributions during liquidation or reorganization. Certain social safety nets may apply to assist affected employees.

Can debts be reduced or written off under restructuring?

Yes, debts may be reduced, rescheduled, or partially forgiven as part of a restructuring plan if agreed upon by stakeholders and approved by the court.

Does insolvency affect personal credit in Taiwan?

Yes, bankruptcy and certain insolvency procedures can negatively impact personal or corporate credit records in Taiwan, affecting the ability to borrow or conduct business.

What protections exist against creditor harassment?

Once bankruptcy or restructuring is filed with the court, creditors are typically barred from taking independent collection action or harassment. Legal remedies exist to deal with unlawful creditor behavior.

Can foreign creditors participate in Taiwanese insolvency proceedings?

Yes, foreign creditors are allowed to participate and file claims, but must follow local procedural rules and often require legal representation in Taiwan.

Additional Resources

For more information or assistance, consider contacting or referring to the following:

• Taipei District Court Commercial Court Division
• Ministry of Economic Affairs, Department of Commerce
• Financial Supervisory Commission, Banking Bureau
• Legal Aid Foundation (Taiwan) for general legal support
• Local bar associations specializing in bankruptcy and restructuring law

Next Steps

If you are facing financial distress or considering initiating a restructuring or insolvency process, it is vital to act promptly:

• Gather all relevant financial documents and records
• Make a list of current debts and creditors
• Contact a reputable lawyer experienced in restructuring and insolvency law in Taiwan
• Consult with your lawyer about your options and legal strategy
• If appropriate, involve relevant financial advisors or accountants to assist with planning

The earlier you seek advice, the more options you may have to protect your interests and achieve a favorable outcome. Professional legal guidance ensures you navigate the process correctly and in accordance with local laws.