Insolvency Lawyers in Limassol
Agathokleous-Neophytou & Co. LLC is Limassol’s leading law firm handling liquidation/insolvency and recovery cases. Our lawyers are licensed by the Cyprus Bar Association to deal with voluntary liquidations. We help our clients negotiate the terms of their bankruptcy and liquidation of certain items, providing expert legal advice and in-depth information on the complexities of each unique case.
Our law firm provides efficient advice on all insolvency matters in Cyprus.
How Can Our Insolvency Solicitors Help?
Our insolvency solicitors in Limassol provide valuable legal advice on financial distress situations, helping companies or individuals navigate bankruptcy proceedings, restructuring debts, and negotiating with creditors to find viable solutions. Our insolvency law services include:
Debt Restructuring and Negotiation
We assist businesses and individuals in negotiating debt restructuring agreements with creditors. We help our clients create manageable repayment plans, easing financial burdens and fostering sustainable financial recovery.
Insolvency Litigation
Our lawyers represent clients in insolvency-related disputes, handling issues such as debt validity, asset ownership, and creditor priorities. We advocate vigorously in court, striving for resolutions that align with our client’s best interests.
Asset Liquidation and Disposal
Remortgaging
Property transfer
Property Disputes
Property tax issues
Have a legal question or issue? Contact our experienced lawyers today!
What is the Legislation for Closing a Company in Cyprus?
The Companies Law in Cyprus provides two legal options for closing down a business: compulsory and voluntary. There are also particular regulations for the liquidation and restructuring of companies in Cyprus.
Compulsory Closure of a Company
A compulsory company closure can be initiated by a local court based on a petition from a stakeholder, such as a creditor, when the company fails to pay its debts.
Voluntary Company Closure
Voluntary close is initiated by the company’s directors or shareholders when they decide to dissolve the entity without court intervention. The company’s management presents a resolution related to the insolvency, leading to the dissolution of the company.
Liquidation of a Company
According to regulations set in 2015 in Cyprus, creditors can file for liquidation if the minimum debt is €5,000. Compulsory liquidation must be completed within 18 months from the decision date. A liquidator appointed by a Cypriot court or the company’s creditors must have a professional license.
Company Restructuring
Companies in Cyprus can undergo restructuring for short-term liquidity or to establish a merger for better taxation schemes. The procedure is initiated by a company representative, which can be a creditor or a member. Certain exemptions apply to banks and insurance companies, which are regulated under different procedures.
Have a legal question or issue? Contact our experienced lawyers today!
What is Insolvency/Liquidation?
Liquidation is the process of selling off the assets of a business, settling outstanding debts, and dividing the remaining assets among shareholders, partners, or other investors when a company can no longer meet its financial obligations and becomes insolvent. There are two main types of liquidation: voluntary and compulsory liquidation.
Voluntary liquidation often occurs when the company’s leadership recognizes that the business is not financially viable, while compulsory liquidation is a legal process enforced to protect creditors’ rights. Both processes aim to fairly distribute the company’s assets to satisfy as many financial obligations as possible before the company is formally dissolved.
Experienced Insolvency & Recovery Lawyers
Our law firm in Limassol, Cyprus, boasts a team of skilled insolvency lawyers who specialize in guiding businesses and individuals through the complexities of both voluntary and compulsory liquidation processes. With a deep understanding of Cyprus insolvency law, our team provides strategic advice, represents clients in negotiations with creditors, and seeks the most favorable outcomes in liquidation proceedings, ensuring compliance and protecting clients’ interests.
Insolvency Law in Cyprus
Insolvency Law/Litigation in Cyprus is designed to address the financial difficulties of companies and individuals, offering structured solutions for debt management and asset liquidation. Key features include:
- Comprehensive Legal Framework: Governed by specific statutes that align with EU directives, ensuring a standardized approach to insolvency.
- Protection for Creditors and Debtors: Balances the interests of creditors with the rights of debtors, providing equitable treatment.
- Rehabilitation Focus: Encourages the restructuring of financially troubled entities, aiming for recovery and continuation of business operations where feasible.
These elements make Cyprus’ approach to insolvency law effective in managing financial distress while promoting fairness and economic stability.
Contact us
Our liquidation specialists provide smooth and efficient legal services in Cyprus.
Our Approach
At Agathokleous – Neophytou & Co LLC, licensed by the Cyprus Bar Association, we specialize in providing comprehensive insolvency law services, including assistance with voluntary liquidations and expert negotiation during bankruptcy proceedings. Our approach is grounded in offering meticulous legal advice, coupled with the in-depth knowledge of our experienced lawyers, ensuring that our clients navigate the complexities of insolvency with clarity and confidence.
Why Choose Us?
By choosing Agathokleous – Neophytou & Co LLC, you gain a partner committed to guiding you through every step of the insolvency process with professionalism, integrity, and a deep commitment to client care. Our firm leverages its extensive legal expertise and understanding of Cyprus’ insolvency landscape to tailor advice and strategies that align with each client’s unique situation. This personalized approach means that we not only address the immediate challenges of insolvency but also lay the groundwork for our client’s future financial stability and success.
We understand the challenges and stresses that come with financial distress and strive to offer solutions that are both strategic and empathetic, aiming to achieve the best possible outcomes for our clients. Whether it’s restructuring debt, liquidating assets, or negotiating with creditors, our team is dedicated to protecting your interests and securing a path forward.
Frequently
asked questions
Read through some quick, clear answers to common legal inquiries about liquidation in Cyprus. For more information, call us today to discuss your case in detail.
How can a company declare insolvency in Cyprus?
A company can declare insolvency in Cyprus by filing a petition to the court, demonstrating its inability to meet financial obligations. The process requires detailed documentation, including financial statements. Agathokleous-Neophytou & Co. LLC can guide companies through the legal steps necessary for declaring insolvency, ensuring compliance with Cyprus law.
What rights do creditors have under Cyprus insolvency law?
Creditors have the right to file claims against the insolvent estate, attend creditors’ meetings, and vote on proposals for the company’s future, including restructuring plans. They are prioritized according to statutory rankings in receiving payments from the liquidated assets.
Can insolvent companies in Cyprus be restructured?
Yes, insolvent companies in Cyprus can be restructured through a reorganization plan approved by the court and creditors. This process allows the company to continue operations while paying off debts. Agathokleous-Neophytou & Co. LLC can assist in drafting and negotiating restructuring plans that serve both the company’s and creditors’ interests.
What happens during the liquidation process of a company in Cyprus?
During liquidation, a company’s assets are sold off to pay creditors, and the company is dissolved. The process is overseen by a liquidator who ensures assets are fairly distributed according to legal priorities. Our seasoned lawyers can provide legal advice and representation throughout the liquidation process.
How does personal insolvency differ from corporate insolvency in Cyprus?
Personal insolvency in Cyprus deals with the debts of individuals and offers solutions like bankruptcy or personal repayment plans. On the other hand, corporate insolvency involves the debts of legal entities and includes liquidation or restructuring. The legal framework and procedures differ significantly between the two.
What are the consequences of insolvency for company directors in Cyprus?
Company directors in Cyprus may face restrictions on directing other companies and legal scrutiny to ensure no wrongful or fraudulent trading occurred before insolvency. Directors must act in the best interest of creditors from the point of insolvency to avoid personal liability.
Can insolvency proceedings in Cyprus affect international assets?
Yes, insolvency proceedings in Cyprus can have implications for international assets. The ability to affect such assets depends on international agreements and the cooperation of foreign jurisdictions. Agathokleous-Neophytou & Co. LLC can provide guidance on dealing with assets located outside Cyprus in the context of insolvency proceedings.
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Hours
Open from 08:00 - 18:00 ,
Monday to Friday
Phone number
+357 22 322274
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