[BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN SPAIN] 92
that, although they concur, must cause or aggravate the insolvency (“iuris tantum” assumption) and where contrary evidence is permissible. Likewise, the consequences that for the affected persons may derive from the characterization of the contest as guilty are several, from the disqualification to manage assets and rights, to the liability to cover the deficit of assets not satisfied in the insolvency proceeding. III.INSOLVENCY PROCEEDING OF NATURAL PERSONS. Although there is nothing to prevent natural persons from using the insolvency proceeding referred to in the previous sections, with the necessary differences derived from their status as natural persons (documentation to be provided, shorter processing time, etc.), the fact is that the only reason for individuals to initiate it is that through it they can get their debts discharged. This is the so-called "Benefit of Exoneration of Unsatisfied Liabilities" ("BEPI"), which is the essential differentiating element in the regulation of the insolvency of natural persons with respect to legal persons, since the latter will not have the option of obtaining such exoneration insofar as, as legal persons, they only are able to approve an agreement and thus continue with their activity, or they are liquidated and extinguished. Having established the above, in order for a natural person to achieve BEPI the following is required a) By means of a debt payment plan. This means of exoneration does not require the prior liquidation of the debtor's assets or;
b) When after the liquidation of the debtor's assets there is a continuing insufficiency of assets to satisfy the debts. In both cases, in order to obtain the BEPI, a series of subjective requirements are established for the personal debtor that focus on his consideration as a debtor in good faith, i.e., not having been declared bankrupt, not having been convicted of crimes against assets, public finances, or against workers in the previous ten years; In any case, certain credits are not exonerable, among others, those of public law with a limit of up to 10,000€, the credits for alimony, or the expenses and costs for the processing of the bankruptcy. IV. SPECIAL PROCEDURE FOR MICRO- COMPANIES. This is the first time that a specific and exclusive regulation for a certain type of company, the so-called micro-companies, has been introduced in the insolvency regulations. The reason for contemplating this special regulation now is twofold, on the one hand, because most companies that go into insolvency proceedings end up in liquidation, and on the other hand, because the Spanish productive composition is made up of a high percentage of companies that meet the parameters of Micro-companies, which makes it necessary to give them a specific treatment with respect to the rest of the insolvency proceedings in order to reduce the costs of the procedure and its duration in view of the smaller size and complexity of these companies. The aim is that if a company is viable, the agreement can be approved as soon as possible, and if it is not, it can be liquidated as soon as possible.
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
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