Frequently asked questions

The law requires you to file within two months of becoming aware, or when you should have become aware, that the company is insolvent: that it can no longer pay its debts regularly as they fall due. If you expect not to be able to pay within the next three months (imminent insolvency), you can act early and file sooner or negotiate a restructuring plan.

A clear warning sign is the statutory ground for dissolution: when losses reduce net equity to less than half of the share capital. If the director does not act in time, they may end up liable with their own assets. It is best to review the balance sheet with an insolvency lawyer as soon as possible.

They take time: around a year for ordinary proceedings. It depends a great deal on the court and on how complex the business is.

It varies a lot: it depends on whether the aim is continuity or closure, the size of the business and the type of procedure. In the first conversation, which is free of charge, we explain the costs in your case.

It depends on the court, but it is usually resolved in around 4 to 5 months.

The administrator is the judge’s right hand and oversees the proceedings. They play an active role and, depending on the case, supervise or replace the company’s directors in managing its assets.

Insolvency is fortuitous when it is caused by circumstances not attributable to the debtor. It is culpable when it was caused or worsened by the wilful misconduct or gross negligence of the debtor or its directors, with consequences for their personal assets.

It is risky. Failing to file in time when the company is already insolvent is one of the reasons insolvency proceedings are classed as culpable.

We can still file, because the law allows it for both current and imminent insolvency. And if there is still room to manoeuvre, it may be the right time for a restructuring plan.

Restructuring is negotiated before or at the start of insolvency, with the business still running and less court involvement. Insolvency proceedings are a full court procedure with an insolvency administrator. Whenever possible, we aim to act early enough for the first route.

Yes. Once negotiations are notified, enforcement against assets needed for the business is suspended for three months, extendable by another three, subject to the exceptions set out in the law.

No. Creditors vote in classes and, once the court approves the plan, it can be extended to those who voted against it if the legal requirements are met.

Yes, it is highly advisable. The articles are public and rigid; a shareholders’ agreement is private and can regulate in detail situations the articles do not cover, such as a shareholder leaving or a deadlock in decision-making.

It is a legal, tax and financial review of a company before buying it, investing in it or merging with it. It reveals the real risks and lets you negotiate price and warranties on an informed basis.

We start with a formal demand and negotiation. If that fails, the Spanish payment order procedure (monitorio) is a fast route to claim documented monetary debts. Since 2025, in most cases an out-of-court resolution attempt is required first.

As a rule, no: the company is liable with its own assets. But there are exceptions —failing to dissolve or file for insolvency in time, culpable insolvency or certain tax claims— in which directors are personally liable. That is why acting in time is key.

Two months to call a general meeting to resolve on dissolution or, if the company is insolvent, to file for insolvency.

It depends on when the debts arose and when your resignation was registered at the Companies Register. We look at each case individually.

The reform has shortened timescales: in the simplest cases, 3 to 5 months. It depends on the court and the route chosen.

It depends on the amount of debt and the debtor’s assets. We understand how vulnerable our clients are: we adapt our fees to each situation and, in some cases, offer payment in instalments.

You can, but it is not advisable. Experience shows that people with several debts, such as loans or payday credits, that leave them unable to live properly end up borrowing more, and the debt snowball keeps growing.

There is no set percentage: it is usually above 80–85%, because it depends on your income rather than on the debt itself. At Rodian Abogados we have obtained write-offs of up to 98.3%. No catch: the law allows it.

Not necessarily. Insolvency can be current or imminent: you do not need to have missed payments, just to be sure they are coming soon.

Absolutely. The aim is for someone who has had bad luck to rebuild their life and start again. Collection calls will stop and you will be able to apply for credit again.

No. Your day-to-day accounts are not taken over and your usual payments are not blocked, unless there is a clear risk of assets being hidden, which is rare.

Yes. Once you start the procedure a protective “bubble” is created and they can no longer call or harass you.

Thanks to the insolvency reform, you keep your family home in the vast majority of cases. Note that the mortgage attached to it also remains. Ask us about your case.

Since April 2025, in most civil and commercial proceedings you must show that an out-of-court resolution has been attempted. Mediation is one option, but direct negotiation between lawyers also counts, for example.

Yes. An agreement reached in mediation is binding and, if formalised before a notary or approved by a court, it can be enforced like a judgment.

All the documents that prove the debt: contract, invoices, delivery notes, emails or messages. With them we assess the fastest route, such as the payment order procedure.