Bankruptcy Proceedings

What is Bankruptcy?

Bankruptcy proceedings are a mechanism available to companies and individuals to find a solution when facing an economic crisis.

Requirement: Not having sufficient liquidity to meet obligations, i.e., lack of solvency.

Within this area we find different figures, which are the services we can offer at IURIUM CONSULTA, as a law firm specializing in Bankruptcy Law.

Corporate Bankruptcy

Voluntary Bankruptcy

In this case, the bankruptcy is filed by the person responsible for the company, because they have information that foresees the insolvency of said company.

If you are aware of your company's insolvency, contact IURIUM CONSULTA and we will advise you as experts in Bankruptcy Law.

Necessary Bankruptcy

The partners or creditors of the company request bankruptcy and the judge processes it.

If your company's partners or creditors have requested bankruptcy, contact IURIUM CONSULTA and we will advise you as experts in Bankruptcy Law.

Personal Bankruptcy / Second Chance Law

Private citizens and self-employed individuals can benefit from this law, which allows them to start over.

Requirements

To benefit from the Second Chance Law, the following is required:

• Demonstrate that you have no assets to meet debts or that they have already been liquidated
• The total debt cannot exceed 5 million euros
• The good faith of the debtor

If you find yourself in a situation where you cannot meet your payments, contact IURIUM CONSULTA and we will advise you on how you can benefit from the Second Chance Law.

Out-of-Court Payment Agreement

A natural person debtor in a state of insolvency who foresees that they will not be able to regularly meet their obligations may initiate a procedure to reach an out-of-court payment agreement with their creditors, provided that the initial estimate of liabilities does not exceed five million euros. In the case of a business debtor, the corresponding balance sheet must be provided.

Legal entities, whether or not they are capital companies, that meet the same conditions may also request the same agreement.

If you are in a state of Insolvency, whether as an individual, business person, or company, and your debts do not exceed five million euros, contact IURIUM CONSULTA to propose an Out-of-Court Payment Agreement with your creditors.

Bankruptcy Agreement

The agreement in bankruptcy proceedings is the legal transaction between the bankrupt party and ordinary creditors, approved by the bankruptcy judge, which aims to satisfy creditors through:

• Write-offs
• Payment extensions
• Alternative or additional proposals

For all or some of the creditors or classes of creditors, with the exception of public creditors.

If you need to file an agreement, contact IURIUM CONSULTA and we will advise you.

BEPI: Benefit of Discharge of Unpaid Liabilities

This occurs when an out-of-court agreement is not reached or when an agreement is not approved within the bankruptcy framework. In these cases, the benefit regulated in Article 178 of the Bankruptcy Law intervenes, which is called Benefit of Discharge of Unpaid Liabilities. It constitutes an exception to the principle that debts are not extinguished.

BEPI Requirements

The BEPI application must be made through a document signed by a lawyer before the same Judge who is hearing the bankruptcy case, at the procedurally appropriate time, and justify compliance with all requirements demanded by law.

If you have not reached an out-of-court agreement or your agreement has not been approved, and you can benefit from BEPI, contact IURIUM CONSULTA and we will advise you.

Need Advice on Bankruptcy?

At IURIUM CONSULTA we are experts in Bankruptcy Law. Whether you need:

• Advice for voluntary or necessary bankruptcy
• Information about the Second Chance Law
• Help with out-of-court payment agreements
• Filing bankruptcy agreements
• BEPI application

Contact us for personalized and professional advice on your insolvency situation.