Insolvency

Insolvency proceedings are governed by Law No 85/2014 and apply to companies that can no longer pay their due debts with the funds available. Depending on the company's financial situation, the procedure may lead to the reorganisation of the business or, where recovery is no longer possible, to bankruptcy and the liquidation of the assets.

The legal services in insolvency matters include the opening of insolvency proceedings at the request of the debtor or of a creditor, the drafting of proofs of claim and challenges, the filing of applications specific to the procedure, as well as assistance and representation before the courts and the insolvency practitioners.

Before initiating the procedure it is necessary to analyse the company's legal and financial situation, the existing claims and the conditions provided for by law for opening the procedure. The legal strategy differs according to the procedural position of the client, being tailored to the interests of the creditor or of the debtor.

Insolvency proceedings are characterised by strict procedural time limits and mandatory formalities. Failure to observe them may lead to the loss of procedural rights or to the impossibility of realising claims within the procedure.

A tailored legal strategy and observance of the time limits provided for by law contribute to protecting the rights of creditors and debtors and to the efficient management of the insolvency procedure.