The termination of contracts in insolvency proceedings
- We frequently come across contracts which link their termination to the declaration of insolvency or notification of the commencement of negotiations. - The TRLC itself establishes the general principle regarding the continued validity of contracts, with the aim of ensuring the continuity of economically viable companies experiencing financial difficulties; clauses providing for a declaration of insolvency, a state of pre-insolvency or insolvency are null and void.
Greater powers for creditors following the insolvency reform (II)
In the article published on 14 December, we outlined a range of tools available to creditors for intervening in insolvency proceedings following the recent reform of the Insolvency Act. In addition to those explained there, it is important to note that creditors have the option of appointing an expert in […]
Greater powers for creditors following the insolvency reform
Following the recent reform of the Insolvency Act, the rules of the game have changed for creditors both during the pre-insolvency proceedings and in the insolvency proceedings themselves. So, what does this new role for creditors entail? Until now, creditors could simply appear in court and little else, as their submissions were only taken into account as […]
The new pre-insolvency law following the reform introduced by Law 16/2022
Book II of the new Insolvency Act has been one of the areas most affected by the reform, as, from the outset, out-of-court payment arrangements and refinancing agreements have been replaced by what are now referred to as “Restructuring Plans”. Consequently, the criteria for the scope of application of pre-insolvency proceedings […]
Practical implications of the new ‘Second Chance’ scheme
As many of you will already be aware, Law 16/2022, reforming the consolidated text of the Insolvency Act, came into force last September. Leaving aside other equally important issues, we will now outline the most significant changes to insolvency proceedings for individuals (commonly known as the ‘Second Chance’) in order to analyse their implications […]
Changes to the ‘second chance’ procedure
The new reform of the Insolvency Act is the result of the transposition into Spanish law of Directive (EU) 2019/1023 of the European Parliament and of the Council of 20 June 2019, on preventive restructuring frameworks, debt discharge and disqualifications, and on measures to increase the efficiency of restructuring proceedings, […]
Reform of the Insolvency Act
The recent Act 16/2022 of 5 September, reforming the consolidated text of the Insolvency Act, seeks to address the main shortcomings of our insolvency system; including pre-insolvency measures, the delayed filing of insolvency proceedings and the excessive length of insolvency proceedings. We are facing an ambitious reform […]
End of the insolvency moratorium
Since 14 March 2020, and as a result of the various measures adopted by the Government to tackle the situation caused by COVID-19, the obligation on companies and directors to file for insolvency proceedings in the event of current or imminent insolvency has been suspended. However, this suspension of […]
The Second Chance Act for individuals
“Are you struggling to pay off your debts? If this is your situation, you should know that you can now get a “second chance”.”
Can I have a second chance?
Many people who, in the current climate, find themselves in dire financial straits are unaware that there are mechanisms in place to enable individuals with debts to be released from those debts which they cannot repay with their assets. It is possible to apply for an out-of-court settlement; if there is no […]