Entrepreneurs or companies that are facing an economic difficulty or insolvency situation, that is, definitive impossibility to meet their payment obligations, have alternatives. Something so essential for the best safeguarding of business interests, as well as of the employer or administrator himself, should not be ignored, such as adequate and well-worked planning with a prior correct strategy.
One solution that companies in a situation of insolvency have is to take advantage of the bankruptcy law two months after their cessation of payments was declared. However, the express pre-bankruptcy of creditors allows them to have three months to reach an agreement and avoid reaching the bankruptcy phase.
The main problem, in this sense, is the silence of the employer in their respective administrative powers in assuming and responding to this situation of economic difficulty, in many cases definitive, which causes the company to lose important and necessary time to find solutions to the situation of insolvency in which you can have great capacity to act to negotiate with suppliers, customers, banks and public administrations.
Thus, as an entrepreneur there should not be a complex. Bankruptcy proceedings have grown by 72% in the last year compared to the same period in 2020. The situation of business activity in Spain is not easy and neither is access to credit.
Although, we must be quick as administrator of a company in financial crisis to protect ourselves as a natural person or passive mass.
The express bankruptcy is a type of bankruptcy that was articulated in the bankruptcy legislation for companies in a situation of insolvency and that lack sufficient assets to meet their debts. Said procedure is provided for in the current Consolidated Text of the bankruptcy law in its article 470.
Companies that see it unfeasible to continue with the business and prefer to liquidate it to avoid generating more debt can resort to this procedure. Therefore, it is a procedure reserved for very critical cases where the impossibility of meeting the costs of the bankruptcy procedure itself is foreseen.
In this type of procedure, the judge must appreciate that obviously the bankrupt’s assets will not be enough to satisfy the claims against the mass or that they do not have any assets to liquidate.
The express bankruptcy procedure offers numerous advantages for entrepreneurs seeking quick solutions for their companies in crisis:
The insolvency administrator is not appointed: this implies saving time and money, since the appointing court does not have to proceed to the search and appointment of the insolvency administrator and, moreover, the latter’s fees are eliminated.
The qualification phase of the bankruptcy is not executed: which results in the non-responsibility of the debtor for the insolvency situation in which the company finds itself.
It offers a faster dissolution and liquidation route: the inconvenience of a long and expensive procedure is avoided, since the different phases that we find in an ordinary procedure do not exist, such as the common phase, agreement and liquidation.
The judge dictates in the same order the opening and conclusion of the bankruptcy, but also the extinction of the company and the closing of the commercial sheet.
Therefore, resorting to express bankruptcy can be a good alternative when liquidating a company in crisis, since it represents a real solution for very critical cases, especially SMEs, and also offers the company a way to dissolve. faster and cheaper, as the procedure is faster than the traditional formula.
