Spain - The reform of the Bankruptcy Law in force in 2022. General lines of the novelties of the reform

The Preliminary Draft of the new reform in bankruptcy matters can be definitively approved by the end of this year, entering into force twenty days after its publication in the BOE at the beginning of 2022. The reform, in the parliamentary processing phase, introduces novelties both in the processing of new agile forms aimed at insolvent individuals and companies, as well as new mechanisms for a second chance for debtors at risk of social exclusion.

The regulatory project includes the transposition of the European Directive on restructuring and insolvency and introduces other reforms to have instruments that seek to streamline and simplify insolvency procedures.

Let us briefly see which are the most relevant modifications:

restructuring plans

It is a pre-bankruptcy instrument and constitutes a novelty in the text of the new law and refinancing and extrajudicial payment agreements will be repealed. The figure of the restructuring expert emerges, which will facilitate the possibility of an agreement.

Early warning

This new instrument allows the debtor to act preventively and channel insolvency, which in this phase is renamed "probable insolvency" with the possibility of initiating pre-bankruptcy mechanisms.

microenterprises

A new special procedure for micro-enterprises is added, adapted to this business reality in our country. It will be characterized by the simplification of procedures by introducing continuation plans that are equivalent to the current contest agreements. The rules of the game are changed and the principle is introduced for creditors that whoever is silent grants, that is, if the creditor does not vote against the plan, it is understood to be in favor.

Right to a second chance

Especially aimed at natural persons (consumers) and the self-employed in general, its purpose is to grant a second chance to those who wish to start or continue with their economic activity. Although the reform aims to simplify the procedure and promote the possibility of exoneration of public credits, mainly Treasury and Social Security, remains unchanged.