Insolvency Consultant
Mr. Sotiris Drakos is an approved insolvency counsellor, and our office offers insolvency and liquidation services to households and companies.
The framework
Under the Insolvency of Natural Persons (Personal Repayment Schemes and Debt Relief Order) Law of 2015, households in need of loan restructuring approach their creditors through an insolvency advisor.
Insolvency advisors help households build workable repayment plans and persuade banks not to treat them as unsustainable or sell their mortgages. Because they have access to a household's complete financial position, the rules governing their work are strict.
The consultant's role
At the debtor's request, the insolvency consultant prepares a debt restructuring plan. The debtor acts in good faith and makes a full disclosure of their financial information.
A short standstill period protects the debtor from creditors' actions while the plan is prepared. The plan may become binding once certain minimum criteria are met.
Where feasible, the plan provides for keeping the debtor's main residence — while leaving creditors no worse off than they would be in the debtor's bankruptcy.
Companies and their rights
A company or any of its creditors may apply to the court for the appointment of an examiner — a registered insolvency advisor. If the court finds that the company can be rescued, it approves the appointment and places the company under court protection for four months, during which no action can be filed against it.
In that period the examiner assesses the company's financial statements and submits to the court a proposal for restructuring its debt, approved beforehand by a majority in value of the creditors.
The court approves the proposal if it is sound and fair, taking into account the continuation of the business, the jobs it saves, and that creditors are not left worse off than in a liquidation. Once approved, the proposal binds all parties.
From household debt to corporate rescue.
Restructuring plans that keep households paying — and, where possible, in their homes.
Relief for debtors who cannot repay, under the 2015 framework.
Representing debtors in negotiations with banks and other creditors.
Court protection and a binding restructuring proposal for viable companies.
Preparing and presenting restructuring proposals for court approval.
Orderly winding-up where rescue is no longer possible.
Facing debts you cannot meet?
Speak to us early — the sooner a plan is in place, the more options remain. Every conversation is confidential.