Insolvency law
We help when a company can no longer pay on time, a creditor has sent a formal notice, or insolvency proceedings have begun and a creditor claim needs to be filed. We advise on restructuring, corporate bankruptcy, and personal bankruptcy, prepare documents, and represent clients in court and at creditors’ meetings.
Legal services for insolvency and bankruptcy
We advise on winding down a company through bankruptcy or pursuing restructuring, prepare court applications, and represent clients in court.
Protecting creditors by preparing creditor claims and actions to challenge transactions that prejudice creditors (actio Pauliana), and representing them at creditors’ meetings, in dealings with the insolvency administrator, and in court.
When to seek insolvency or bankruptcy advice
Your company can no longer pay its debts
When wages and invoices are overdue, we first assess whether the problem is a temporary cash-flow shortage or insolvency. A legal entity is insolvent if it cannot meet its financial obligations on time or its liabilities exceed the value of its assets. That assessment helps determine whether restructuring remains possible or bankruptcy is the appropriate route.
You have received a creditor’s notice
Before going to court, a creditor sends a notice setting a period to reach an agreement on financial assistance or decide on an out-of-court bankruptcy process. This leaves time to negotiate, dispute the debt, or prepare for restructuring.
Your debtor is entering bankruptcy and you have not been paid
Submit your creditor claim and supporting documents to the appointed insolvency administrator within the statutory deadline. The period starts when the court’s order opening insolvency proceedings is published on the supervisory authority’s website. Waiting for a separate letter is risky.
Assets were transferred before bankruptcy
Transfers to relatives or related companies before insolvency may be challenged through an actio Pauliana claim. Do not miss the shortened limitation period. It starts when you learned, or should have learned, of both the transaction and the infringement of the creditor’s rights.
A director is being sued for damages
The insolvency administrator or creditors may seek compensation for a late court filing. The defense depends on when the company actually became insolvent, what the director did, and whether those steps met the standard of a careful and diligent director.
Your personal debts have become unmanageable
Personal bankruptcy may be worth considering when your income no longer covers repayments and bailiff enforcement. Before applying to court, we assess which debts would remain and what would happen to pledged or mortgaged property.
What to know before starting
Waiting is a common mistake. The Law on Insolvency of Legal Entities requires a director who identifies insolvency to notify the owners immediately and, if they do not resolve it, apply to court. A late application can result in personal liability for creditors’ losses. Those losses are generally measured by the increase in unpaid debts during the delay. Dates become key evidence: when the director learned of the company’s condition and what they did in response.
Transferring assets to relatives rarely protects them. Such transactions may be challenged under Article 6.66 of the Civil Code through an actio Pauliana claim, with the assets returned to the bankruptcy estate. For an individual, bad-faith conduct may also prevent access to personal bankruptcy. More serious cases may lead to criminal liability under the Criminal Code provisions on debtor dishonesty and criminal bankruptcy.
Approval of a creditor claim does not guarantee payment. Funds are distributed in the statutory order of priority. Proceeds from pledged or mortgaged property first go toward the secured claim. Actual recovery depends on the assets remaining in the company and whether unlawfully transferred assets can be recovered, rather than the size of the claim alone. Active participation in creditors’ meetings can therefore matter.