Bankruptcy Proceedings
Are you the administrator of a company and cannot meet the regular payments?
In that case, you shouldn’t wait any longer to file for insolvency proceedings, which would allow you to close the company and forget about the debts. From DSM we take care of the previous preparation.
What is the Insolvency Proceedings?
Insolvency proceedings are a judicial proceeding that must be filed when the company is unable to meet its payments in order to avoid bankruptcy, seeking to reach agreements that allow the economic viability of the debtor and guarantee the collection for the creditors.
Why file for bankruptcy with DSM?
From DSM we take care of the previous preparation by analyzing the accounting documentation necessary for the presentation of the bankruptcy, accompanying the Administrator at all times, no matter how the accounting of the company is.
At DSM we update the company’s accounting so that it reflects the real situation of the company at the time of filing for bankruptcy.
Stages of the Competition
At DSM we take care of the previous preparation by analyzing the accounting documentation necessary for the presentation of the tender.
We accompany the Administrator of the company at all times, no matter how the accounting of the company is.
Application and admission
It may be requested by the debtor (voluntary bankruptcy) or by the creditors (necessary bankruptcy).
Common phase
The debtor's assets are investigated and a detailed report on his assets and debts is prepared.
Settlement or liquidation phase
Agreements are negotiated with creditors or the debtor's assets are sold to pay creditors in the order established by law.
Conclusion of the procedure
The judge issues a resolution that closes the insolvency proceeding, declaring the extinction of the unsatisfied debts.
To be taken into account
The insolvency proceeding is a key tool to handle insolvency situations, since it allows to avoid a disorganization in the collection of debts and, in some cases, to save the debtor’s economic activity.
However, it also has significant legal and financial implications for all parties involved.
Obligation to apply
It should be taken into account that the Capital Companies Law establishes joint and several liability for the debts of the Administrators who fail to comply with the obligation to file a dissolution of the company or an insolvency proceeding within 2 months of the occurrence of a cause for dissolution in the company.
(Article 367 of the Corporations Law)
Liability of the Administrator
It is of vital importance, in order to avoid the joint and several liability of the Administrator and therefore to safeguard his personal assets, to be able to file for insolvency proceedings as soon as the company finds itself with a general suspension of payments.
Voluntary vs. necessary bankruptcy
If the debtor fails to act, creditors may file for insolvency proceedings, which may limit the debtor’s control over the proceedings.
Express contest
The insolvency without assets of the company is commonly known as Express Insolvency due to its agility and speed in being processed in the Court. It also has a lower cost than traditional bankruptcy proceedings, making it a good option for the closing and liquidation of companies with debts.
However, it is essential to present all documentation correctly and act transparently to avoid legal complications.
Company's debt with tax authorities and social security authorities
In the cases in which the company maintains a debt with the Treasury and/or Social Security, it is necessary and urgent to be able to file an insolvency proceeding and this is due to the fact that the Public Administrations derive in most of the cases, the responsibility of the debt to the Administrators affecting therefore to their personal patrimony.
For this reason, an insolvency proceeding must be filed when the debts with the Tax Authorities and/or Social Security become due and cannot be paid.
What do our customers think?
Case studies
Avalista logra cancelar más de 71.000 € en deudas y detener el embargo de su nómina
Matrimonio cancela casi 194.000 € en deudas y conserva su vivienda
Administrador de una Sociedad Limitada cancela más de 932.000 € en deudas gracias a la Ley de Segunda Oportunidad
Jubilado con hipoteca consigue cancelar 48.000 € en deudas y conservar su vivienda
Empresario cancela más de 39.000 € en deudas avaladas por su empresa
Do you need specialized financial advice?
Our team of experts is ready to help you overcome your financial challenges. Contact us today and discover the best solution for your situation.
