Best Restructuring & Insolvency Lawyers in Tommerup

About Restructuring & Insolvency Law in Tommerup, Denmark

Restructuring and insolvency law in Tommerup follows Danish national law and the procedures used throughout Denmark. The legal framework covers two main pathways for distressed companies and individuals - formal bankruptcy proceedings and formal or informal restructuring solutions. The goal of the system is to balance creditor rights with opportunities to rescue viable businesses, protect employees and provide orderly distribution of assets when rescue is not possible.

Local courts and appointed trustees manage bankruptcies and supervised reconstructions. For people and businesses in Tommerup you will normally work with the court and public authorities that have jurisdiction over your area, local advisors such as accountants and lawyers familiar with Danish insolvency practice, and municipal debt-counselling services for individuals.

Why You May Need a Lawyer

You may need a lawyer when facing insolvency or restructuring because the situation typically involves complex procedural rules, tight deadlines and potential personal liability for company directors or owners. Lawyers experienced in insolvency law help you understand options, protect your interests and navigate court and creditor processes.

Common situations where legal help is important include when:

- A company cannot pay its debts when they fall due or is insolvent on a balance-sheet basis.

- Creditors threaten enforcement measures such as attachment, forced sale of assets or bankruptcy petitions.

- You want to try to save the business through a supervised restructuring or informal agreement with creditors.

- Employees need advice about unpaid wages, notice periods and claims in a bankruptcy.

- Directors face allegations of wrongful trading, preferences or other liability for company actions before insolvency.

- There are cross-border creditors, assets or group-company issues that raise questions under EU or international rules.

Local Laws Overview

Key legal features that are particularly relevant in Tommerup and across Denmark include the following.

- Bankruptcy and reconstruction framework - Danish law provides for formal bankruptcy proceedings managed by the court and a trustee, and for restructuring procedures intended to rescue viable businesses. A court-supervised reconstruction can include a moratorium on enforcement while a rescue plan is prepared.

- Trustee and court roles - The court appoints a trustee to administer bankrupt estates. The trustee collects assets, evaluates claims and distributes proceeds to creditors according to statutory priorities.

- Creditor priorities - Secured creditors generally have priority over identified collateral. Unsecured creditors share in remaining assets. Employees have special protections for unpaid wages and pension contributions, often supported by a public guarantee fund.

- Director duties and possible liability - Directors must act prudently when a company is in financial difficulty. Payments made with knowledge that the company cannot meet its obligations, fraudulent transfers and preferential payments shortly before insolvency may expose directors to liability.

- Individual debt relief - Individuals and self-employed persons have separate statutory options including debt-relief procedures which are distinct from corporate bankruptcy.

- Tax and public claims - Tax authorities and other public creditors often have strong collection powers. Special rules apply to how tax claims, VAT and employee-related contributions are treated in insolvency.

- Cross-border issues - If creditors, assets or group companies are located outside Denmark, international rules and EU instruments may affect where proceedings are conducted and how assets are treated.

Frequently Asked Questions

What is the difference between bankruptcy and reconstruction?

Bankruptcy is a formal insolvency process where a trustee takes control, realises assets and distributes proceeds to creditors. Reconstruction aims to rescue a viable business by restructuring debts and operations, often with court supervision and a temporary stay on enforcement. The choice depends on the companys financial position and prospects for recovery.

How do I know when I should file for bankruptcy or seek restructuring?

You should seek professional advice as soon as you suspect you cannot pay debts when they fall due or the company is over-indebted. Early advice improves options. A lawyer or accountant can assess cash flow, balance-sheet position and the realistic prospects for rescue versus orderly winding-up.

Can a creditor force my company into bankruptcy?

Yes. Creditors may petition the court to commence bankruptcy proceedings if the debtor cannot pay due debts. The court will consider the petition and relevant facts before ordering bankruptcy. A debtor may also file for voluntary bankruptcy or seek reconstruction before a creditor obtains enforcement.

What happens to employees if my employer goes bankrupt?

Employees normally become unsecured creditors for unpaid wages, notice pay and vacation pay, but Danish law provides specific protections. A guarantee fund often covers certain unpaid wages and pension contributions up to statutory limits. Employees rights regarding notice and termination depend on employment contracts and collective agreements.

Will filing for reconstruction stop creditors from enforcing claims?

When reconstruction proceedings are opened, the court may grant a temporary stay or moratorium on enforcement so a plan can be prepared. The exact scope and length of any stay depend on the court order and circumstances. Always obtain legal guidance before relying on enforcement protections.

Can directors be held personally liable for company debts?

Directors can be held personally liable in certain situations, for example if they continue to trade knowing the company cannot meet its obligations, or if they engage in fraudulent or preferential transactions. Directors should seek legal advice promptly when financial distress becomes apparent.

How long do insolvency or restructuring processes usually take?

Timing varies widely. Supervised reconstructions may take a few months to negotiate and implement a plan. Bankruptcy administrations can take from several months to years depending on the size and complexity of the estate, the need to realise assets and the number of claims to be processed.

What documents and information will a lawyer need to help me?

Key documents include recent financial statements, bank statements, tax records, a list of creditors and outstanding balances, contracts, employment records, security agreements and any correspondence with creditors. The more complete the information, the faster an advisor can assess options.

How are secured creditors treated in Danish insolvency?

Secured creditors generally enforce their security over specific assets and are paid from the realisation of that collateral ahead of unsecured creditors. The exact position depends on the type of security and how it is registered.

Where can I get free initial help if I cannot afford a lawyer?

Municipal debt-counselling services can provide initial guidance for individuals. For businesses, local business advisory centres, accountants and trade organisations may offer initial advice. It is still important to consult an insolvency lawyer for legal strategy and court procedures.

Additional Resources

Here are public bodies and organizations that can be helpful if you need information or assistance in Tommerup:

- The Danish Business Authority - for company registrations and regulatory matters.

- The Danish Tax Agency - for tax claims, VAT and employer contributions.

- The local district court and its probate and bankruptcy division - for filing and handling of bankruptcies and reconstructions in your jurisdiction.

- Lønmodtagernes Garantifond - the wage guarantee fund that assists employees in bankruptcy cases.

- Municipal debt counselling - local municipal services provide guidance for private individuals with problem debt.

- Danish Bar Association - for finding accredited lawyers with experience in restructuring and insolvency.

- Trade unions and employee organisations - for individual employees needing help with wage and employment claims.

Next Steps

If you are facing financial distress or possible insolvency, consider the following steps:

- Act quickly. Early professional advice expands your options and reduces the risk of personal liability for directors.

- Gather documents - financial statements, bank records, creditor lists, contracts and employee information - to give to your lawyer or advisor.

- Contact a specialist insolvency lawyer or an experienced accountant to review your situation and explain likely outcomes and costs.

- Avoid making large or preferential payments to selected creditors without advice - such payments can create claims against you later.

- Talk to your bank, key suppliers and stakeholders about short-term support or negotiated arrangements while you explore formal restructuring or other solutions.

- For individuals, contact your municipal debt-counselling service to learn about options for debt relief and budgeting help.

Seeking timely, specialist legal advice is the most important step. A local lawyer with experience in Danish restructuring and insolvency law can explain the best route for your circumstances and represent you in any court or creditor negotiations.