On 01 January 2023, the new Third Book of the TRLC, introduced by Law 16/2022, of 05 September, came into force, which regulates a special insolvency procedure for micro-companies. In December 2022, 1,136,444 micro-companies were registered in Spain, representing 38.70% of the companies in our country.
Who will be able to use this special procedure?
Those debtors, whether natural or legal persons, who carry out a business or professional activity and who meet the following characteristics:
1.ª To have employed an average of less than ten workers during the year prior to the application.
2.ª To have an annual turnover of less than 700,000 euros or liabilities of less than 350,000 euros according to the last accounts closed in the financial year prior to the submission of the application.
Provided that they are in a state of probable insolvency, imminent insolvency, or current insolvency.
When do I have to apply for the declaration of insolvency?
Within two months of the date on which you knew or should have known of the current state of insolvency.
What is the new special procedure for the insolvency of microenterprises?
This special procedure consists of two phases:
- Negotiation: any microenterprise may notify the Court, by means of a standardised form, of the opening of a negotiation period of a maximum of three months with its creditors with the aim of agreeing a continuation plan or a liquidation with the transfer of the company in operation.
During this three-month period, individual enforcement proceedings will be suspended, except for those initiated by public creditors.
- Opening of the special procedure: once the three months have elapsed, the debtor must apply for the opening of the special procedure within five working days by submitting a standard form.
There are two ways in which this procedure may be carried out:
1.- A continuation procedure: by filing a continuation plan which will be submitted for approval, allegations, and vote by the creditors. This is regulated in Title II of Book III.
2.- A liquidation procedure, with or without transfer of the company in operation, designed as a simple and flexible instrument for micro-companies to be able to put an end to their business project in an orderly manner. It is regulated in Title III of Book III.
A special feature of this special procedure is that if at least 85% of the claims correspond to public creditors, the special procedure can only be processed as a liquidation procedure.
The standard forms can be found, completely free of charge, at the General Access Point of the Administration of Justice, with all the necessary instructions for their use. To access it, you will need to identify yourself. Here is the link:
At Figueras Legal we help and advise you to find out if you are within the framework of application of the special procedure for micro-companies and we accompany you throughout the process. First consultation free of charge. More information at firstname.lastname@example.org.