Spanish SMEs at the crossroads: where do we go from here?
Small and medium-sized enterprises (SMEs) are well known for playing a major role in all economies, being the key generators of employment and income. As a result, SMEs are crucial …
Long-Awaited Amendment to Insolvency Legislation in Spain: Is it Sufficient?
The Law introduces positive changes to financing agreements and restructuring but fails to address critical issues. Inadequate resources for the Justice system and the absence of solutions for individual debt problems persist. Additionally, the underutilization of the restructuring procedure contributes to low satisfaction among ordinary creditors.
Creditors’ compulsory liquidation proceedings in Spain
In Spain, creditors’ compulsory liquidation proceedings differ from creditors’ voluntary liquidation, as they are initiated by a legitimate creditor following Article 3.1 of the Law 22/2003 (the Insolvency Act).
Procedures in the Civil and Contentious-Administrative Systems in Spain
This article contains a summary of the principal measures introduced by the Procedural Streamlining Measures Bill in Spain, which is intended to improve, streamline and speed up current procedures in the spanish Civil and Contentious Administrative Systems in Spain.
Duties and Liabilities of Directors in Insolvency Proceedings in Spain
The current Spanish Insolvency Law raises directors’ liability levels. Hence, directors must not only manage the company but also address legal aspects to prevent liability in insolvency proceedings.
Modification of the bankruptcy proceedings in Spain
The Council of Ministers has endorsed a draft amending Spain’s insolvency proceedings law, previously modified by Royal Decree 3/2009. The amendments, introduced to expedite and reduce costs, aim to position insolvency proceedings as a tool not only for winding up but also for attempting to save the company.
Impact of company abandonment in Spain on the system of managerial liability
The Spanish legal system offers creditor protections for companies that cease commercial operations but remain inactive, failing to undergo the necessary dissolution and liquidation processes. Typically insolvent, these companies neglect corporate debts and obligations by discontinuing trading, abandoning the business premises, not filing annual accounts with the Commercial Registry, neglecting tax payments, and failing to fulfill other corporate obligations mandated by law.
Guidelines and tips to follow in an insolvency proceeding in Spain
This article delves into crucial aspects of insolvency and debt collection proceedings in Spain. It highlights the practical challenges faced by economic actors, emphasizing the decision-making process between liquidation and reaching agreements with creditors, which can be influenced by the type of creditor involved. The article also briefly touches on the limited effectiveness of insolvency proceedings in family debt cases.
Reform 3/2009 to the Spanish Insolvency Law
In Spain, the Insolvency Law 22/2003 underwent recent reform with Royal Decree Law 3/2009 (March 27), responding to the global economic crisis. Originally enacted during economic prosperity, the law’s deficiencies over six years prompted modifications in the reform.
