When debts outweigh assets, there are options before closing down.

Pre-insolvency · Insolvency proceedings · Restructuring · Second Chance

What does our service include?

From the viability analysis to an orderly liquidation or obtaining second-chance debt relief. We stand by companies and self-employed professionals through every stage of an insolvency situation.

  • Business viability analysis
  • Out-of-court payment agreements
  • Pre-insolvency filing (art. 583 of the Spanish Insolvency Act, TRLC)
  • Insolvency proceedings (concurso de acreedores)
  • Insolvency mediation
  • Restructuring plans
  • Express insolvency (concurso exprés)
  • Orderly liquidation
  • Second Chance Law (individuals)
  • Discharge of unpaid debts (EPI)
  • Directors' liability
  • Challenging the insolvency classification

When should you talk to an insolvency lawyer?

Don't wait until the situation is irreversible. The sooner you act, the more options are available. These are the signs that it is time to seek specialist advice.

Recurring missed payments to suppliers

When cash flow does not stretch to the end of the month and debts pile up with suppliers, the Spanish tax authority (Hacienda) or Social Security, you need to act before seizures or court claims arrive.

Sustained losses over time

If the company has recorded losses for several financial years and its net equity has fallen below half of its share capital, the directors have legal obligations that cannot be ignored.

Enforcement proceedings and seizures

If enforcement proceedings are already under way, a pre-insolvency filing can suspend seizures for 3 months and buy time to negotiate with creditors.

A fresh start for over-indebted self-employed workers and individuals

The Second Chance Law (Spanish Law 25/2015, as amended by Law 16/2022) allows individuals — both self-employed workers and private individuals — to obtain the full or partial cancellation of their debts when they cannot pay them and have acted in good faith.

The process ends with the discharge of unpaid debts (Exoneración del Pasivo Insatisfecho, EPI): a court order that releases the debtor from the debts they have been unable to pay, allowing them to start over without the weight of unpayable obligations.

  • Possible full cancellation of debts owed to private creditors
  • Possible partial reduction of debts owed to the tax authority and Social Security
  • Allows you to keep your main home under certain conditions
Discuss my situation

Who is eligible?

Insolvent individuals (private individuals and self-employed workers) acting in good faith: with no convictions for economic offences in the last 10 years and willing to cooperate with the process.

How long does the process take?

It depends on each case, but the 2022 reform has simplified the process. The out-of-court route can be resolved in 3 to 6 months. The court route can take between 6 months and a year.

Which debts are cancelled?

The discharge (EPI) can cover debts owed to private creditors, banks, the tax authority and Social Security (with limits). Child and spousal maintenance and criminal fines are not cancelled.

Can it be used more than once?

Yes, but with conditions: 10 years must pass from the first discharge before you can use the mechanism again.

Common questions
about insolvency law

What are insolvency proceedings (concurso de acreedores)?
It is a court procedure for insolvent companies that seeks the orderly payment of creditors or the controlled liquidation of the company.
When is my company obliged to file for insolvency?
The law requires you to file within two months of the date on which you knew, or should have known, that the company was insolvent.
What is the Second Chance Law?
It is a mechanism that allows individuals and the self-employed to have their debts cancelled if they have acted in good faith and cannot pay them.
Can debt be restructured without going into insolvency proceedings?
Yes, through the restructuring plans introduced by the insolvency reform, which allow you to negotiate with creditors before insolvency becomes critical.
What liability do I have as a director?
If insolvency proceedings are not filed within the legal deadline, the director may be ordered to pay the company's debts out of their personal assets.

Is your company — or you personally — in financial difficulty?

Tell us about your situation. The first consultation is free and comes with no obligation. We analyse your case and explain the options available to you.

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