Insolvency Proceedings in Spain (Concurso de Acreedores)

Where a debtor becomes insolvent, creditors may need to take part in formal insolvency proceedings, governed by the consolidated Insolvency Act (Royal Legislative Decree 1/2020), as reformed by Law 16/2022 transposing the EU Restructuring Directive. The framework provides both for restructuring viable businesses and for liquidating those that cannot continue.

Creditors should monitor insolvency filings closely, since strict deadlines apply to communicating claims to the insolvency administrator (administración concursal) for their classification and inclusion. Failing to act in time can adversely affect recovery prospects. Although insolvency frequently reduces the amount ultimately recovered, the proceedings remain an important means of protecting creditors' rights and securing an orderly distribution of the available assets.

We file and defend our clients' claims in Spanish insolvency proceedings, monitor the process and pursue any available avenues to improve recovery.