Insolvency Lawyers in Spain
Insolvency proceedings in Spain
Advice from the best bankruptcy lawyers
Professional legal advice
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DEBTORS’ INSOLVENCY PROCEEDINGS (INDIVIDUALS – FREELANCERS – COMPANIES)
Don’t lose more money or pay more interest. Contact us for a free consultation. Our service includes:
- Court and out-of-court representation of debtors for insolvency and bankruptcy EXPRESS and NON-EXPRESS proceedings;
- Negotiation and settlement of debts and deferred payments;
- Negotiation with the bank for reposition of a property;
- Company bankruptcy proceedings;
- Advice for company directors or managers on how to protect the company against liabilities.
CREDITORS’ INSOLVENCY PROCEEDINGS
Our team of lawyers and tax advisors are experienced in helping Court-Appointed Receivers, Insolvency Practitioners, Creditors and Individuals in the following areas:
- Representation of creditors in national insolvency.
- Court and out-of-court bankruptcy and winding-up proceedings.
- Recognition in Spain of insolvency proceedings in other jurisdictions.
- Asset recovery strategies and related corporate support.
- Recognition and enforcement of confiscation and restriction orders
- Seizure of assets, including properties, bank accounts and other assets.
- Management and commercial marketing and sale of assets for the benefit of creditors.
What is insolvency in Spain?
If you live in Spain, you contract both its legal benefits and obligations.
It is possible that, when opening a business or by simple chance of fate, you may find yourself in an unfortunate situation of insolvency proceedings.
Loans can become a trap that you are desperate to get out of, but don’t worry, we specialise in insolvency proceedings.
Having Spanish lawyers specialised in insolvency proceedings on your side helps a lot during the process and saves you money.
Insolvency is understood as the inability to have sufficient resources (usually money) to be able to meet the basic obligations that have been contracted, whether this is due to a loan, corporate debt or any other reason.
Why does insolvency occur?
Default on loan payment, taxes and social security payments are the most common cause. It is true that we live in uncertain times, where any situation can disrupt our economy in a very short period of time.
The crises that have taken place in recent years make the market an unstable place, which can change very quickly. Those who set out to open a physical business during 2020 and have had to close down may find themselves in a situation of insolvency.
There are three types of insolvency in Spain depending on the type of arrears you have with your payments:
Below we explain the most beneficial options for you in each of the cases.
English-speaking lawyers for insolvency problems.
Our legal department will treat all the services you need regarding inheritances and wills with the utmost sensitivity, discretion and efficiency.
What to do in case of insolvency?
In the case of slight insolvencies, you are faced with non-payments that you can negotiate with the suppliers. They are usually one-off and can be assumed in the short term.
Moderate insolvencies are usually characterised by the fact that they cannot be solved quickly. The income you receive is too low or non-existent to repay the debts and you will need urgent help to solve it as soon as possible.
With regards to severe insolvencies, the payment delay period will have exceeded 60 days and you will be plunged into a very unpleasant situation. We advise you not to get into such long-lasting debts, as they have very negative consequences for your future as an entrepreneur or an individual.
In all cases, we recommend that you enlist the help of an insolvency professional in Spain to ensure that the entire process complies with the law.
Who can become insolvent in Spain?
As mentioned above, it is most common for insolvency to arise from part of a debt that cannot be paid. This is the most common scenario in companies, as they usually have economic agreements of many kinds with suppliers and clients and, in certain cases, they may contract a deficit or liquid insolvency in order to meet their most immediate payments.
We advise all business owners to have an accountant to keep the accounts of their companies in Spain, so that moderate or serious insolvency never occurs and minor insolvencies will be kept to a minimum (to the point of being non-existent).
Individuals can also become insolvent. A mortgage is the most common case of debt owed by a non-business person. Coping with mortgage debts can be an uphill battle and the resolution of a mortgage default can result in eviction.
What happens if a company becomes insolvent and does not pay its debts?
This is the situation you never want to find yourself in, but sometimes it happens. When you are not in your home country or you don’t speak the language, these processes become more difficult to deal with.
If a company has obligations that it cannot cope with for too long, the company’s manager must declare the company’s bankruptcy or the State can take it to an insolvency proceeding. Such insolvency proceedings are a way to solve the financial problems of a company that becomes insolvent. However, it is not a situation of power for entrepreneurs, but rather of vulnerability.
Once again, correct advice from accountants specialised in insolvency in Spain is the best way to avoid unpleasant proceedings.
We would like to remind you that you can get free information from our advisors, who will study your case and try to ensure that problems do not arise for you or, if you are in a delicate situation, that you come out of it with flying colours.
The relationship we maintain with our clients is deeply personalised and each case will be dealt with by the best insolvency lawyers in Spain.