Best Restructuring & Insolvency Lawyers in Alicante

About Restructuring & Insolvency Law in Alicante, Spain

Restructuring and insolvency law in Alicante refers to the legal framework and procedures that address situations where individuals or companies are unable to pay their debts. Spain, including the Alicante region, follows a national insolvency law known as the "Ley Concursal", which is aimed at both protecting creditors' rights and offering debtors a chance to reorganize or, if necessary, liquidate assets to settle debts. The process is supervised by specialized commercial courts ("Juzgados de lo Mercantil") located in Alicante. These courts ensure that both debtors and creditors are treated fairly throughout the restructuring or insolvency process.

Why You May Need a Lawyer

Navigating restructuring and insolvency cases can be complex, especially due to the legal, financial, and personal consequences involved. Here are some common situations where legal assistance is vital:

• Your business is facing severe financial difficulties and may not be able to meet its obligations.
• You are an individual who cannot keep up with personal debt repayments.
• You have received a formal notice from creditors or the court regarding unpaid debts.
• You are a creditor concerned about recovering debts from a company or individual in default.
• You wish to understand the options for restructuring debt before formal insolvency proceedings.
• You are involved in disputes about the ranking or validity of claims.
• You need guidance through the liquidation of assets or business closure procedures.

A lawyer can guide you through negotiations, draft necessary documents, represent your interests in court, and help you achieve the most favorable outcome within the law.

Local Laws Overview

In Alicante, as in the rest of Spain, restructuring and insolvency procedures are mostly governed by national law, specifically the Spanish Insolvency Act ("Ley Concursal"), and influenced by EU regulations. Key aspects include:

• Pre-insolvency Proceedings: Debtors can seek to negotiate with creditors and reach agreements to avoid formal insolvency. These agreements must be approved by the court to be binding on all parties.
• Insolvency Proceedings ("Concurso de Acreedores"): This is a formal court process for companies or individuals who are insolvent, that is, unable to meet their financial commitments as they fall due. It can be initiated voluntarily or by a creditor.
• Restructuring Plans: Businesses may propose restructuring plans to reorganize debts and business activities to enable continued operation.
• Liquidation: If restructuring is not possible, the debtor's assets are sold off to pay creditors, usually in a set priority order.
• Public Administration: Local commercial courts (Juzgado de lo Mercantil) in Alicante have the authority over insolvency cases. Cases are often handled locally for businesses based in the province.
• Creditor Rights: Creditors are grouped according to the type of claim (privileged, secured, unsecured, etc.), and payments are made accordingly.
• Personal Insolvency ("Segunda Oportunidad"): Individuals can seek a "second chance" mechanism to discharge certain debts under specific conditions.

Frequently Asked Questions

What is the difference between restructuring and insolvency?

Restructuring involves negotiations to modify the terms of debts or operations to avoid insolvency. Insolvency is a legal state where a person or business cannot pay its debts as they become due, often resulting in court proceedings.

Who can initiate insolvency proceedings in Alicante?

Both debtors and creditors can initiate insolvency proceedings. Debtors are obliged to file for insolvency if they recognize that they cannot meet their payments.

What is the "pre-pack" procedure in Spain?

The "pre-pack" allows a company to negotiate and agree to asset sales with potential buyers before formal insolvency filing, streamlining the process and potentially preserving business value.

What obligations do directors have during insolvency?

Company directors must file for insolvency within two months of becoming aware of the company’s insolvency. Failure to do so can result in liability for debts and disqualification from managing companies.

Can individuals benefit from restructuring or insolvency laws?

Yes, individuals can seek debt relief under the "second opportunity" mechanism. This allows for debt restructuring and, in some situations, partial or full discharge of debts.

What types of debts can be discharged through insolvency?

Most debts can be restructured or partially discharged, but exceptions exist, such as family support payments, certain tax liabilities, and fines.

How long does the insolvency process usually take in Alicante?

The duration depends on the complexity of the case, ranging from several months to years, especially if litigation occurs between parties or asset sales are involved.

Do I lose all assets in insolvency?

Not necessarily. Certain assets may be protected by law as essential for basic living. In business cases, assets may be sold to pay creditors, but exemptions and negotiations often apply.

How are creditors paid in insolvency proceedings?

Creditors are paid in a strict order of priority, starting with secured and privileged creditors before unsecured creditors.

Are cross-border insolvency issues handled in Alicante?

Yes, Alicante courts can handle insolvency cases with an international element, particularly under EU regulations. Cooperation between courts is common when assets or creditors are based in different countries.

Additional Resources

• Alicante Commercial Court (Juzgado de lo Mercantil de Alicante): Handles commercial and insolvency matters in the city and province.
• Banco de España: Provides consumer information regarding personal debt and insolvency.
• Instituto de Crédito Oficial (ICO): Offers support and information on business financing and restructuring options.
• Colegio de Abogados de Alicante (Bar Association): Can refer you to specialized restructuring and insolvency lawyers in Alicante.
• Agencia Tributaria: Offers guidance on tax obligations in insolvency situations.
• Chamber of Commerce of Alicante: Provides business advice including on debt restructuring.

Next Steps

If you are facing financial challenges as an individual or a business in Alicante, it is essential to act quickly and seek professional guidance. Here are recommended steps:

• Assess your financial situation and gather all relevant documents related to debts, contracts, and assets.
• Consult with a lawyer experienced in restructuring and insolvency law to evaluate your options and obligations.
• Discuss possible out-of-court agreements or the suitability of formal insolvency proceedings.
• Follow your lawyer’s guidance regarding negotiations, court submissions, and communication with creditors.
• Stay proactive - delays can worsen your financial position and reduce available legal protections.

A qualified restructuring and insolvency lawyer in Alicante will help you understand the process, protect your interests, and work toward a viable solution for your financial stability.