In business, it is inevitable that some enterprises encounter insolvency. In such cases, Hungarian law offers two primary paths: bankruptcy proceedings for survival through restructuring, or winding-up (liquidation) proceedings for termination without a legal successor. Our firm provides comprehensive legal support on both the creditor and debtor (management) sides.
Winding-up (Liquidation) Proceedings
The purpose of winding-up proceedings is to satisfy creditors in a statutory manner during the termination of an insolvent debtor without a legal successor.
Representation for Creditors
If a business owes you money and payment demands have remained unsuccessful, we assist in initiating winding-up proceedings. It is critically important to adhere to deadlines: creditor claims must be filed with the liquidator within 40 days of the commencement of the proceedings to be eligible for satisfaction.
Representation for Debtors
If winding-up has been initiated against your company, we review the lawfulness of the claim and, where possible, contest the insolvency before the court. We assist in reaching a settlement or in negotiations aimed at terminating the proceedings.
Bankruptcy Proceedings (Restructuring)
Bankruptcy proceedings provide a payment holiday (moratorium), the aim of which is for the debtor to avoid liquidation and continue its activities through an agreement reached with its creditors.
Our firm provides assistance in drafting the bankruptcy settlement proposal, participating in creditors’ meetings, and ensuring the legal background for the reorganization plan.
Liability of Executive Officers
During winding-up proceedings, company managers (managing directors) bear significant responsibility. We help navigate “lawsuits for the establishment of liability,” providing defense against allegations of violations committed to the detriment of creditor interests, or conversely, enforcing a creditor’s claim against a negligent manager.
How We Can Help:
- Drafting payment demands and petitions for winding-up.
- Filing and monitoring creditor claims.
- Representation in communication with the liquidator and the court.
- Conducting bankruptcy settlement negotiations.
- Advice regarding executive liability.
If you have any questions or would like a quote, please contact us by phone, email, or use the form below.
Dr. Hercsik Alexandra Law Office
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