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Insolvency lawyers in Valencia
We are an insolvency firm in Valencia that doesn’t look to liquidate: we use insolvency proceedings to protect your business and your assets, not to shut them down.
01 — Insolvency proceedings
Insolvency proceedings are not the end of a business. Well planned and started in time, they are the legal tool that lets you gain breathing space, negotiate with creditors and keep going.
Legal and financial review
We look at your case from a legal and an economic angle to establish whether the business is viable.
Focused on continuity
Our goal is to save the business. Liquidation is always the last resort.
01 — What it is
What is a concurso de acreedores?
The concurso de acreedores is the Spanish court procedure for companies and professionals who can no longer pay their debts as they fall due —to suppliers, banks, the tax authorities or Social Security. It is governed by the consolidated Insolvency Act, reformed in 2022.
It can be requested when insolvency is current —you can no longer pay— or imminent —you expect not to be able to pay within the next three months—. There is also a deadline to bear in mind: the debtor must file within two months of becoming aware of its insolvency.
Filing in time protects both the company and its directors. Delaying is one of the most common reasons for an insolvency to be classed as culpable.
02 — Types
Ordinary, no-asset and micro-business procedures
Ordinary proceedings
The standard procedure. It has two possible outcomes: the business continues under an arrangement agreed with creditors or, if it is not viable, it is wound up in an orderly way.
No-asset proceedings
These replace the former “express” procedure. They apply when the company does not even have enough assets to cover the costs of the procedure. They are faster and end with the company closing, but they require the same diligence: directors’ liability does not disappear.
Special procedure for micro-businesses
Since 2023 there has been a simpler and cheaper route for companies and self-employed people with fewer than 10 employees and a turnover below €700,000 or liabilities below €350,000. It allows either a continuation plan or liquidation.
03 — Continuity
Keeping going: write-offs, deferrals and arrangements
When a company lacks cash but is still viable —it makes money, just not enough to pay all its debts—, insolvency proceedings let it present a plan and negotiate an arrangement with its creditors.
- Write-off (quita): creditors forgive part of the debt and the rest is paid, in one go or in instalments. For example, 50% of a €100,000 debt is written off.
- Deferral (espera): payment is postponed so the business can recover and pay 100% over an agreed period, which can be several years.
- Both at once: write-offs and deferrals can be combined if creditors agree.
04 — Liquidation
When there is no way out: an orderly liquidation
If the business is not viable and things get worse every month, the responsible course is to wind it up: sell its assets to pay as much of the debt as possible. Whatever is not covered by the sale is extinguished with the company.
The big question: will the business owner have to pay with their own money or assets? No, as long as the insolvency is not classed as culpable.
05 — Classification
Fortuitous or culpable insolvency
At the end of the procedure the judge classifies the insolvency. If it was caused by factors beyond the owner’s control —an economic crisis, the loss of a key client, a market downturn— it will be fortuitous and the owner will not be liable for the remaining debts.
It will be culpable if the insolvency was caused or worsened by wilful misconduct or gross negligence: failing to file in time, not keeping proper accounts, taking assets out of the company… In that case directors may be disqualified, ordered to cover the shortfall with their present and future assets, and barred from the Second Chance Law. In the most serious cases there may also be criminal consequences.
We explain this in detail under directors’ liability.
How we work
One method for every case: listen, understand the numbers and choose the route that protects what you have built.
- 01
First conversation
We listen to your situation and review the key documents.
- 02
Diagnosis
We assess the legal and financial viability of the business.
- 03
Strategy
We choose the route: negotiation, a restructuring plan or insolvency.
- 04
Support
We represent you before the court, the insolvency administrator and creditors until the end.
FAQ
Frequently asked questions
Can’t find your question? In a first conversation, free of charge, we answer your questions about your specific case.
The law requires you to file within two months of becoming aware, or when you should have become aware, that the company is insolvent: that it can no longer pay its debts regularly as they fall due. If you expect not to be able to pay within the next three months (imminent insolvency), you can act early and file sooner or negotiate a restructuring plan.
A clear warning sign is the statutory ground for dissolution: when losses reduce net equity to less than half of the share capital. If the director does not act in time, they may end up liable with their own assets. It is best to review the balance sheet with an insolvency lawyer as soon as possible.
They take time: around a year for ordinary proceedings. It depends a great deal on the court and on how complex the business is.
It varies a lot: it depends on whether the aim is continuity or closure, the size of the business and the type of procedure. In the first conversation, which is free of charge, we explain the costs in your case.
It depends on the court, but it is usually resolved in around 4 to 5 months.
The administrator is the judge’s right hand and oversees the proceedings. They play an active role and, depending on the case, supervise or replace the company’s directors in managing its assets.
Insolvency is fortuitous when it is caused by circumstances not attributable to the debtor. It is culpable when it was caused or worsened by the wilful misconduct or gross negligence of the debtor or its directors, with consequences for their personal assets.
It is risky. Failing to file in time when the company is already insolvent is one of the reasons insolvency proceedings are classed as culpable.
We can still file, because the law allows it for both current and imminent insolvency. And if there is still room to manoeuvre, it may be the right time for a restructuring plan.
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Timing matters
Acting in time changes everything.
Businesses tend to file for insolvency only when the situation is already unsustainable. But acting early —through insolvency or a restructuring plan— can make the difference between restructuring and liquidating. And failing to act in time can put directors’ personal assets at risk.