Bankruptcy Lawyers in Spain

• When I find myself in a situation where I am unable to meet my ordinary financial obligations.
• I am not yet in that situation but it is imminent.
• I foresee that in the next three months I am going to be in that situation.

You will need a lawyer to assist with the legal strategy and a “procurador” to act in court on my behalf. Contact us now for a free consultation of your case.

You will need to gather several essential documents for the bankruptcy or insolvency proceeding, including:

• Economic reports for the past three years.
• Annual financial statements for the last three years.
• A detailed list of creditors.
• A comprehensive list of employees.
• An inventory of the company’s assets.

These documents are crucial for the evaluation and decision-making processes throughout the insolvency or bankruptcy proceedings, helping to provide a comprehensive view of your financial situation and facilitating discussions with creditors and relevant authorities.

The insolvency procedure typically unfolds in the following stages:

1. First and foremost, a comprehensive list of creditors is compiled, with each creditor being given a one-month window to communicate the details of their credit claims.

2. Subsequently, the possibility of initiating a negotiation or agreement with the creditors is explored. This involves presenting a plan outlining the feasibility of the business’s revival and proposing certain concessions, such as extending payment timelines or seeking debt forgiveness, in order to chart a path forward for the company.

3. Additionally, it’s important to note that, either concurrently or sequentially with the negotiation phase, if the company is unable to secure its future, the liquidation phase commences. During this stage, all assets are meticulously assessed and managed, and creditors are compensated according to their priority in the hierarchy of debt repayment.

4. Simultaneously, an evaluation is conducted to determine whether the insolvency situation arose due to the fault or liability of the company’s administrators. This assessment helps determine if any legal actions should be taken against them.

These stages collectively constitute the framework of the insolvency procedure, addressing the dual objectives of finding a viable solution to keep the business afloat while also ensuring that creditors are treated fairly and their claims are addressed. Additionally, the process includes an inquiry into the responsibility of the company’s administrators for the insolvency situation.

As the manager of a company, your liability for the company’s debt in a bankruptcy situation depends on specific circumstances outlined in the bankruptcy law. Here are the scenarios in which managers can be held responsible with their personal assets:

Situations in which liability is established without exception:

1. When the debtor takes possession of all or part of the company’s assets to the detriment of its creditors or hinders enforcement proceedings.
2. When, within the two years preceding the declaration of insolvency, assets or rights are fraudulently removed from the company’s assets.
3. When, before the insolvency declaration, the debtor engages in legal acts aimed at creating a fictitious asset situation.
4. When the debtor submits inaccurate information or false documents during the bankruptcy process.
5. When the debtor, who is legally obligated to maintain accurate accounts, fails to do so, maintains duplicate accounts, or commits significant irregularities in the accounts relevant to understanding the company’s financial situation.
6. When the initiation of liquidation is mandated ex officio due to the debtor’s breach of agreements attributable to their actions.

Situations in which liability is established unless proven otherwise:

1. Failure to fulfill the duty to request the declaration of insolvency when necessary.
2. Failure to cooperate with the insolvency judge and administration, including not providing necessary information or attending creditors’ meetings when their participation could have been decisive.
3. Failure to prepare annual accounts, submit them for audit (when required), or deposit them in the appropriate registers during any of the last three financial years before the insolvency declaration.