Bankruptcy Lawyers in Portugal

Updated on Wednesday 30th March 2022

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Bankruptcy in Portugal is declared when the existing company can no longer pay its debts. Basically, a company's insolvency occurs when it no longer has enough funds to operate in the market. There are a number of procedures that come to the attention of our bankruptcy lawyers in Portugal. They can handle the formalities involved.

Bankruptcy proceedings in Portugal

An economic and financial report will be drawn up before declaring the bankruptcy of a Portuguese company. It will highlight the company's existing financial assets. Here is a general description of how to file for bankruptcy in Portugal.

If the company cannot pay its obligations and debts, then it can go into insolvency.
The bankruptcy process can start if after 30 days the company is up to date with payments.
An insolvency plan is being prepared, and one of our bankruptcy lawyers in Portugal can handle the formalities involved.
The intention to declare insolvency is then presented before the court. This will require a liquidator to handle the insolvency proceedings.

What should the company's managers and administrators do in case of insolvency?

The board of directors of the company has the legal obligation to submit the declaration of insolvency, which is previously entrusted to the management of the company. In other words, directors must subject the company to insolvency proceedings just before the maturity of the debts. This can happen if the directors have reason to believe that the company will not be able to meet its financial obligations in the future.

You can find out more about the insolvency proceedings and the obligations of the administrators of a company from our bankruptcy lawyers in Portugal.

Other insolvency proceedings in Portugal

Every creditor has the right to bring an action to restore rights. This can be done either by invoking new facts or by requesting the analysis of relevant evidence that has not yet been considered or presented to the court. Also, the liquidation and distribution of the insolvent mass may be suspended and postponed, except in the case where there are goods subject to depreciation or damage.

Moreover, the suspension may also occur if one of the creditors of the bankrupt company files an appeal against the decision to declare insolvency.

It is important to note that if the action for restitution of rights and the appeal against the declaration of insolvency continue, the declaration of insolvency may be revoked. There are many cases in which this phase can delay the insolvency process for at least 6 months. More about bankruptcy in Portugal can be discussed with our attorneys.

Why is a bankruptcy lawyer needed in Portugal?

Bankruptcy in Portugal can be a difficult process that can take a long time. A bankruptcy lawyer in Portugal can handle the formalities and explain the existing procedures, according to the law. You can rely on the experience and professionalism of our bankruptcy lawyers in Portugal if you are interested in this case.

Here are some facts about bankruptcy and companies in Portugal and the European Union:

The first half of 2021 saw a bankruptcy rate of about 7.3% in the European Union.
The rate of companies declared bankrupt in the EU increased by 5.8% in 2020, while the registration of new businesses increased by only 0.3%.
According to Econews.pt, there has been an 8.9% decrease in bankruptcies in Portugal, compared to the last 3 months of 2020.

Want to know more about bankruptcy in Portugal? Contact our law firm in Portugal and discover our legal services. Specialized advice can be offered to those who want to start a business in Portugal.