What regulates the Bankruptcy Law?

Article by: D. Gabriel Zepeda | Last update: April 10, 2022
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Bankruptcy law is the denomination used to designate the set of substantive and procedural rules that regulate the bankruptcy procedure of all kinds of debtors (individuals or legal entities).

What law regulates bankruptcy?

The Bankruptcy Law (Law 22/2003, of July 9) is in charge of regulating the main aspects of bankruptcy proceedings. On the other hand, insolvency proceedings are procedures that seek to respond to a situation of financial crisis of natural or legal persons.

What is the Bankruptcy Law in Spain?

Bankruptcy law in Spain is a whole set of rules that serve to manage and control bankruptcy proceedings. These procedures can range from pending payments to debtors to forced liquidation, among others.

What is a bankruptcy proceeding?

The bankruptcy procedure is one that begins when a natural or legal person becomes insolvent, unable to meet their debts. Its objective is to negotiate and reach an agreement between creditors and debtor. The first of the requirements therefore is the existence of a debtor.

What is the role of a bankruptcy administrator?

The figure of the insolvency administrator

Its main function is to study the situation of the insolvent company and manage it for the benefit of all parties. Fundamentally, they are expert lawyers or economists from the private sector, with proven experience and training in the field of insolvency proceedings.

28 related questions found

How much can a bankruptcy administrator charge?

Specifically, the payment to the administrator is made in two parts: 50% is received within a maximum of 5 days after the court order establishes the total amount. The other 50% receives it 5 days after the firm resolution is made public.

What are the fees of a bankruptcy administrator?

According to the regulations, when the debts are less than €500,000, the administrator charges 0.3% in the first phase of the contest. 70% must be deducted from this as it is a private contest. This means that the administrator collected €54 during the first phase of the contest.

When does the bankruptcy procedure start?

The bankruptcy procedure is carried out when a company with a debt crisis cannot meet its obligations, for which the debtor or creditor requests an adequate environment for negotiation from the Indecopi Bankruptcy Procedures Commission (CCO).

How do bankruptcy proceedings start?

The Ordinary Bankruptcy Procedure may be initiated by the debtor himself or by his creditors, fulfilling the requirements established in the Law.

Who initiates the bankruptcy procedure?

The Ordinary Bankruptcy Procedure may be initiated by the debtor himself or by his creditors, fulfilling the requirements established in the Law.

Who can be appointed bankruptcy administrator?

Who can be appointed bankruptcy administrator? Pursuant to article 62 of the Bankruptcy Law, the administrator may be both a natural person (natural person) and a legal person (represented by a natural person) who is registered in the corresponding public bankruptcy registry.

How many books does the Bankruptcy Law have?

In terms of extension, it has expanded the previous Bankruptcy Law to a total of 752 articles divided into three books: Bankruptcy, Pre-bankruptcy Law and Private International Law.

What are the credits against the estate?

Credits against the estate, in a bankruptcy situation, are those that have priority for collection. They are specifically determined in article 242 of the Bankruptcy Law. They are basically made up of privileged credits and expenses or debts generated after the declaration of insolvency proceedings.

What is bankruptcy in civil law?

Bankruptcy is a legal procedure regulated in the Bankruptcy Law mainly aimed at resolving the insolvency problems of a company. Insolvency that, in most cases, is usually caused by excessive indebtedness, lack of liquidity or an undervaluation of assets.

What is the purpose of bankruptcy?

The purpose of the creditors’ meeting is the satisfaction of the various credits that concur in the debtor’s insolvent assets, avoiding the preferential satisfaction of some over others and justifying an equitable distribution among said creditors with respect to the patrimonial insufficiency as…

What happens when a company goes into bankruptcy?

In short, bankruptcy is applied when the debtor is unable to satisfy the debts by himself. Or when he anticipates that in the short or medium term he will not be able to satisfy them. Thus, through a judicial process, an agreement is sought between the debtor and the creditors, agreeing to remove or wait.

How many stages does the bankruptcy procedure have?

There are three stages in the Commercial Bankruptcy procedure.

What is bankruptcy procedure in Peru?

of the bankruptcy procedure. It is also known as insolvency, suspension of payments, failure or state of crisis. It is the special economic-financial situation of a certain patrimony, declared by the Commission, in accordance with the provisions of the Law on the matter.

When is a preventive bankruptcy procedure and an ordinary bankruptcy procedure carried out?

The preventive insolvency procedure is basically oriented to prevent the problem of a debtor’s patrimonial crisis, unlike the ordinary insolvency procedure that is destined to face and reverse (if possible) a manifest crisis.

When the bankruptcy procedure is initiated by the debtor, must they prove?

Any debtor may request the start of the ordinary insolvency proceeding provided that they prove that they are in at least one of the following cases: (i) that more than one third (1/3) of the total of their obligations are overdue and unpaid for a period greater than thirty (30) calendar days; or, (ii) …

How many types of bankruptcy proceedings are there?

There are currently two types of bankruptcy procedures: An ordinary bankruptcy procedure (declaration of insolvency) and the preventive bankruptcy procedure (preventive bankruptcy).

Who pays the receiver’s fees?

Who pays the receiver? It is important to point out that this figure is an auxiliary entity of the judicial system. Therefore, if the judicial administrator is designated within the personnel that integrates the judicial organisms, his payment would be covered by the justice system.

How to calculate bankruptcy mediator fees?

Form of payment of the fees of the bankruptcy mediator. The bankruptcy mediator will charge: During the first 6 months, at the rate of 10% of their fees per month. Subsequently, this amount will be reduced to 5% per month.

Who determines the compensation of the bankruptcy administrator?

1. In any state of the bankruptcy, the compensation of the bankruptcy administrators may be modified by the judge, ex officio or at the request of a legitimate person, when there is just cause, with application of the tariff.

How long does the Bepi take?

Phase 3: How long does it take to manage the BEPI? In the event that the agreement is not successful, the application for the exemption benefit will begin. The duration of this process depends on the occupation of the court assigned to the user. But it usually lasts between 4 and 6 months.

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