Legal assistance in insolvency proceedings
Insolvency proceedings involve the exercise of rights and the fulfilment of obligations by both creditors and debtors, in accordance with Law No 85/2014 on insolvency prevention procedures and insolvency proceedings. Observing the procedural time limits and adopting an appropriate legal strategy are essential for protecting the interests of the parties and realising the rights conferred by law.
Legal assistance in insolvency proceedings may include drafting and filing proofs of claim, lodging challenges against the measures ordered within the procedure or against the list of claims, representation before the court, the judicial administrator or the judicial liquidator, as well as legal advice throughout the procedure.
Depending on the specific situation, the services may be provided both to creditors, with a view to realising their claims and exercising their procedural rights, and to debtors, in order to fulfil the obligations provided for by law, be represented within the procedure and identify appropriate legal solutions, including with a view to reorganising the business or to bankruptcy proceedings.
Insolvency proceedings are characterised by strict procedural time limits and mandatory formalities, and failure to observe them may lead to the loss of certain rights or to the impossibility of realising certain claims or making certain applications specific to the procedure. A tailored legal strategy contributes to the efficient conduct of the procedure and to protecting the client's interests.
Legal assistance provided throughout insolvency proceedings allows the exercise of the rights conferred by law, the observance of procedural obligations and the representation of the interests of creditors and debtors at all stages of the procedure.
Frequently asked questions
How do I register in the creditors' pool?
Registration in the creditors' pool is done by filing a proof of claim, accompanied by the supporting documents that prove the existence, extent and basis of the claim. The documentation required differs according to the nature of the claim and the particular features of each case.
What is a proof of claim?
A proof of claim is the application by which a creditor seeks the registration of its claim in the creditors' pool within the insolvency proceedings. In order to participate in the distribution of the sums resulting from the procedure and to exercise the rights conferred by law, the proof of claim must be filed within the time limit set by the court in the judgment opening the insolvency proceedings.
Can I recover my claim if the debtor is insolvent?
The opening of insolvency proceedings does not automatically mean that the debt can no longer be recovered. Creditors benefit from the rights provided for by Law No 85/2014 and may take part in the procedure by registering in the creditors' pool, exercising their procedural rights and realising their claims under the conditions and in the order of priority established by law.
Can I challenge the preliminary list of claims?
Yes. Creditors and other entitled persons may lodge challenges against the preliminary list of claims under the conditions and within the time limits provided for by Law No 85/2014, where they consider that the registration, rejection or amount of a claim does not comply with the legal provisions.
What happens after insolvency proceedings are opened?
After insolvency proceedings are opened, the stages provided for by Law No 85/2014 take place, including the appointment of the judicial administrator or, where applicable, the judicial liquidator, the verification of claims, the drawing up of the list of claims and the adoption of the measures specific to the procedure. Depending on the specific situation, the procedure may continue through judicial reorganisation or through bankruptcy.
Can bankruptcy be avoided?
In certain situations, yes. If the conditions provided for by law are met and there is a possibility of recovering the business, the company may benefit from judicial reorganisation, on the basis of a reorganisation plan approved under the conditions of Law No 85/2014. Whether bankruptcy can be avoided depends on the company's financial and legal situation and must be analysed on a case-by-case basis.
Can the business continue if the company is insolvent?
Yes. The opening of insolvency proceedings does not automatically mean the cessation of the company's activity. Depending on the particular features of each case and the measures ordered within the procedure, the company may continue its activity, including with a view to judicial reorganisation, under the conditions provided for by Law No 85/2014.
Can the measures of the judicial administrator be challenged?
Yes. Under the conditions provided for by law, entitled persons may lodge challenges against certain measures ordered by the judicial administrator or the judicial liquidator, in compliance with the applicable procedural time limits and conditions.
What other applications can be made in insolvency proceedings?
During insolvency proceedings, numerous applications and procedural incidents may be raised, including challenges against the measures of the judicial administrator or liquidator, challenges concerning the list of claims, applications to hold the members of the management bodies liable, actions to annul fraudulent acts, oppositions and other applications provided for by Law No 85/2014.
When can the company's administrator be held liable?
Under the conditions provided for by Law No 85/2014, the court may order that the members of the management bodies be held liable where the company's insolvency was caused by committing the acts provided for by law. Each situation must be analysed according to the specific circumstances and the available evidence.
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