Barcelona's courts want to stop rogue practices in private tenders
Since the reform of the insolvency law came into force in September 2022, the procedure has been simplified and the courts have received an avalanche of applications from companies that have trumpeted the ease with which they can obtain debt exoneration. Faced with this situation, the twelve commercial courts in Barcelona have agreed to increase their control.
According to the agreement on the unification of criteria, the courts consider the salary as the active mass of the insolvency proceedings as long as the amount exceeds the minimum wage, can cover the costs of the insolvency proceedings and satisfy the debtor's basic needs.
The key will be to prove that the debtor can make a "reasonable effort" to repay the debts. If this is the case, the insolvency proceedings will be declared with active mass, an insolvency administrator will be appointed and a payment plan will be agreed that will oblige the debtor to repay all or part of the debt within a period of 3 or 5 years.
Josep Pujolràs, partner of RocaJunyent in the Restructuring department, considers that "the criteria are appropriate to bring the law closer to reality and to adequately base judicial decisions and avoid practices that harm creditors".
Access to the full article (available in Spanish)
Published in
