Creditor contest


When a self-employed person or SME can not cope with payments and is in a insolvency situation , in many cases the only way out is to opt for the bankruptcy . This procedure is carried out in situations of suspension of payments and bankruptcy .

The purpose of the bankruptcy contest is, therefore, to stop the possible negative effects of an insolvency. It is about organizing finances so that creditors can collect as much as possible of their debts. In this procedure, workers have preference over company managers.

At the time of making the call, this can be carried out in two ways: requested by the insolvent person or by request of any of those affected. If requested by the debtor, the debtor must prove that he or she is in an insolvent economic situation. On the other hand, if it is requested by the creditor, it must base it on the defaults due, indemnities, social security payments ...

In a first stay of the creditors' contest , the judge orders the creditors to declare the existence of the payments they claim. Once this is done, the credits of each of the privileged are classified as special, general and ordinary. Then a proposal will be formulated to proceed with its payment. Said proposal may contain reductions in the amount to be charged or delays in the collection.

The contest concludes, generally, with the agreement of the creditors . This agreement is reflected in a judgment that causes the insolvent person or company to finish their accumulation of debts. However, when the resolution dictates the absence of assets and rights of the debtor, the debtor will be responsible for the payment of the remaining credits.

As a self-employed or a company facing a delicate economic situation in which it is impossible to face a considerable amount of payments, it is essential to have the advice of a lawyer specialized in bankruptcy proceedings . This professional can advise on the steps to follow and, if finally the bankruptcy is the chosen option, will help to carry it out in the best way.