Latest reform of the Insolvency Law: Unifying Criteria of the Barcelona Commercial Courts
On 6 September 2022, the Official State Gazette published Law 16/2022 reforming the consolidated text of the Insolvency Act ("TRLC"), which substantially modified our pre-insolvency and insolvency system.
More than a year after its entry into force, and with many practical aspects still to be resolved, many authoritative opinions are calling on the insolvency legislator to reform the aforementioned legal text.
This is mainly due to the fact that 90% of the insolvency proceedings processed in Spain under the new TRLC correspond to proceedings involving individuals and without assets, the purpose of which is none other than the exoneration of unsatisfied liabilities.
In view of this reality, and with the aim of unifying the criteria of insolvency law in other matters, the Commercial Courts of Barcelona have issued a series of Agreements, focused on five main areas, to homogenise the interpretation of different precepts of the aforementioned legal text.
The aforementioned criteria affect the following issues:
- Insolvency proceedings without an estate.
- Exoneration of unsatisfied liabilities.
- Sale of production units.
- Bankruptcy pre-pack.
- Special procedure for micro-companies.
With the aforementioned criteria, the Commercial Courts unify the interpretation of the Insolvency Act in order to provide legal certainty to the procedure, making their position clear.
Although these criteria only apply to the Commercial Courts of Barcelona, it is to be expected that they will be extended to other jurisdictions, as has been the case on previous occasions.
Access to the complete informative note
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