Debt Recovery and Restructuring

KARA Law Firm provides comprehensive legal consultancy services in the field of debt management, including debt collection, restructuring, and concordat proceedings, with the aim of preserving the financial stability and long-term sustainability of its clients. Our primary objective is to resolve financial disputes that may arise in commercial relations and minimize the associated risks.

1. Debt Collection

Effective legal enforcement of overdue or non-performing receivables:

• Enforcement Proceedings: Initiating and managing legal enforcement processes for promissory notes, court judgments, and non-judicial debts
• Seizure and Sale: Placing liens on movable and immovable assets of the debtor and executing sales procedures
• Prejudgment Attachment: Securing receivables through court-ordered provisional attachments
• Litigation in Enforcement Law: Filing and pursuing lawsuits for annulment of objections, negative declaratory actions, and restitution claims
• Settlement and Protocols: Conducting settlement negotiations and drafting restructuring agreements during out-of-court collection processes

2. Debt Restructuring

Strategic and legal solutions to help financially distressed clients manage their debt burden:

• Negotiations with Banks and Financial Institutions: Restructuring of interest rates, maturities, and payment schedules
• Restructuring Agreements: Drafting debt restructuring protocols based on mutual agreement between creditors and debtors
• Asset Management: Transfer, sale, or restructuring of assets to reduce the total debt burden
• Corporate Restructuring: Legal and financial reorganization of the debt and capital structures of companies

3. Concordat Proceedings

Concordat is a legal mechanism designed to prevent bankruptcy for honest debtors who have lost the ability to pay. Our firm provides full legal support throughout all stages of the concordat process:

• Application and Process Management: Preparation of the concordat application and management of provisional and definitive moratorium processes before the court
• Drafting the Concordat Plan: Preparation of a realistic, feasible, and balanced concordat proposal for creditors
• Creditors’ Meeting: Presentation of the concordat proposal, organization of the meeting, and management of negotiations
• Court Process and Approval: Execution of all necessary procedures to ensure judicial approval of the concordat
• Bankruptcy Prevention and Continuity: Ensuring the process is managed to avoid bankruptcy and allow continued operation of the business