Frequently asked questions
Solve your doubts about our services and processes. Find answers to the most common questions here.
What is insolvency proceedings and when should my company file for them?
An arrangement with creditors is a legal process by which an insolvent company seeks to negotiate with its creditors to restructure its debt and avoid liquidation or to go directly to the definitive closure of its company if it is no longer viable.
You should consider filing for insolvency proceedings if your company is unable to meet its payment obligations on a regular basis, and no improvement in the financial situation is foreseen in the short term and all within 2 months of the start of the non-payments, in order to avoid the liability of the Administrator.
How can we help you?
We assist you in assessing your financial situation and guide you through every step of the process, from filing for insolvency proceedings to negotiating with creditors or closing down your company, in order to protect your interests.
What does the Second Chance Law entail?
The Second Chance Law is a law that allows individuals and the self-employed to eliminate their debts or in some cases to renegotiate them, provided they meet certain requirements. It is designed to give a ‘second chance’ to those who have tried to meet their financial obligations but find themselves in a situation of uncontrollable insolvency.
How can we help you?
We offer you personalised advice to determine whether you are eligible for this law and assist you throughout the process, from negotiation with creditors to debt discharge.
What are the benefits of contracting an external financial management service?
Having an external financial management service gives you access to a team of experts who manage the financial area of your company without having to hire internal staff, thus saving significant labour costs and giving your company a professional image. The main benefits include:
Resource optimisation: We improve cash flow management, reducing costs and maximising profitability.
Strategic decision making: We advise on key decisions that impact the financial future of the company.
Debt restructuring: We negotiate with banks and suppliers to adjust the terms and amounts of debts.
How can we help you?
We analyse your company’s financial situation, propose improvements, implement controls and carry out strategic financial planning to ensure sustainability and growth.
What requirements must I meet in order to take advantage of the Second Chance Law?
To benefit from this law, you must meet the following requirements:
- Be a private individual or self-employed.
- Not to have been convicted of economic or insolvency-related offences.
- That your indebtedness has not been generated fraudulently.
- Not having applied for a 2nd Chance Law in the last 5 years.
How can we help you?
We take charge of reviewing your situation and, if you meet the requirements, we start the whole legal process to apply for the Second Chance Law, guiding you through each step.
What happens after filing for insolvency proceedings?
After filing the insolvency application, the documentation is evaluated and an order is issued declaring the insolvency proceedings, producing a series of effects, the most important of which is the suspension of executions against the necessary assets of the company, i.e., the seizures of the company are paralysed, with some exceptions.
How can we help you?
We represent you throughout the entire process, from the initial preparatory phase to the conclusion of the proceedings, ensuring that your company’s rights are protected.
What types of debts can be exempted under the Second Chance Law?
The Second Chance Law allows for the exoneration of most debts, especially private debts, such as personal loans, credit cards and debts to suppliers.
However, some debts, such as debts with the tax authorities or social security, are treated specially and are directly exempted up to the amount of €10,000 each.
How can we help you?
We inform you about which debts can be exonerated in your specific case and manage the entire judicial process to obtain the greatest possible relief from your financial obligations.
How long does an insolvency proceeding take?
The duration of an insolvency proceeding depends on several factors, such as the complexity of the debts, the number of creditors and whether or not the company has assets. However, on average, the process can last between 6 months and 1 year.
How can we help you?
We guide you through the entire process to make it as smooth as possible and ensure that all deadlines and legal requirements are met.
How long does the Second Chance Law process take?
The length of time the process takes depends on several factors, including the number of creditors, and the complexity of the debts. Generally, the procedure can take between 4 months and 1 year.
How can we help you?
We take care of managing all the stages of the process so that you can take advantage of the Second Chance Law in the shortest possible time, guaranteeing an efficient and transparent process.
Who is eligible for the Second Chance Law?
The Second Chance Law is designed for individuals and the self-employed who cannot afford their debts and want to initiate a debt cancellation or renegotiation process.
It applies to both individuals and the self-employed who have tried to meet their obligations but find themselves in a situation of non-payment of their debts.
What are the requirements to be fulfilled in insolvency proceedings?
In order to file for insolvency proceedings, certain requirements must be met:
- The debtor must be in a situation of actual or imminent insolvency, i.e. unable to meet his payment obligations on time.
- The application must be filed by the debtor within two two months of the insolvency situation..
It is essential to demonstrate that the debtor has acted in good faith and has not aggravated his financial situation by fraudulent actions.
Does the Second Chance Law eliminate all debts?
Not necessarily all of them.
The Second Chance Law allows the cancellation of many debts after the judicial phase, but some, such as those related to the Public Treasury and Social Security, can only be exonerated in the amount of €10,000 each.
Can I get off a ‘debt collection list’ after the 2nd Chance Act?
Yes, the debtor may appear in delinquency registers, such as the ASNEF or RAI files, if he/she has incurred previous defaults. However, once the discharge of debts is achieved, the debtor can request the removal of his or her name from these registers.
Who will have access to the register?
Delinquency registers, such as ASNEF, can be consulted by financial institutions, companies that grant credit and, in some cases, service companies such as utilities.
However, these consultations are regulated by law, and only those with a legitimate justification can access them.
Do debts disappear forever?
Once exoneration of unsatisfied liabilities, is obtained, the debts included in the legal proceedings are definitively cancelled, provided that the obligations arising from the proceedings are not breached. This allows the debtor to make a fresh start without these financial burdens.
Can guarantors be released from debt?
The guarantors remain liable for the debts not paid by the main debtor, unless a negotiation is reached that releases them, therefore, each specific case should be studied on a case-by-case basis, considering the possibility of filing for insolvency proceedings of the main debtor and the guarantors.
