Alicante Lawyers

Insolvency lawyer in Alicante for bankruptcy proceedings

Law firm specializing in insolvency proceedings

If your company, business or professional activity is unable to regularly meet its due obligations, it may be in a state of current insolvency, and the management body must consider filing for insolvency proceedings within two months of becoming aware of that situation. Delaying the decision may worsen the company’s financial position and increase the risks for both the company and its directors. At Pellicer & Heredia, our team of insolvency lawyers in Alicante analyses viability, available pre-insolvency alternatives, documentation and the appropriate insolvency strategy to protect the business activity, corporate assets and the position of directors and creditors.
Reviewed by Pedro Heredia Ortiz, international business lawyer at Pellicer & Heredia.
  • Bar Association No. 5954
  • Languages: English and Spanish
  • Last updated: August 2026.

Is your company struggling to meet payments, deal with seizures or cover upcoming due dates?

Request a consultation with our insolvency team in Alicante. We will review the financial and legal situation, the applicable deadlines and the most appropriate course of action before making decisions that could affect the company or its directors.
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Key facts about insolvency proceedings

These figures are intended as a general guide. The existence of public-law claims, security interests, groups of companies, employees or enforcement proceedings may affect the strategy and the practical consequences.

Concept
Current general information

Current insolvency

The debtor is unable to regularly meet its due obligations. TRLC, Art. 2.

Imminent insolvency

The debtor anticipates that, within the next three months, it will be unable to meet its obligations regularly and on time.

Likelihood of insolvency

It is objectively foreseeable that, without restructuring, the debtor will be unable to meet obligations falling due within the next two years.

Duty to file for insolvency proceedings

Two months from the date on which the debtor became aware, or should have become aware, of its current insolvency. TRLC, Art. 5.

Pre-insolvency negotiations

The initial effects of the notice remain in force for three months and, in certain cases, may be extended for up to a further three months.

Communication of claims

As a general rule, one month from the day following publication of the declaration of insolvency proceedings in the BOE.

Microenterprise

Fewer than ten employees and annual turnover of less than €700,000 or liabilities of less than €350,000, based on the latest closed accounts.

Options for microenterprises

Continuation or liquidation proceedings, with or without the transfer of the business as a going concern

No-asset insolvency proceedings

It may be declared when there are insufficient attachable assets or when their realizable value does not reasonably cover the costs and charges involved

Competent court

The competent Commercial Court according to the debtor’s centre of main interests

When should a company consult an insolvency lawyer?

There is no need to wait until the company has stopped paying all its debts. Early intervention makes it possible to determine whether the company is facing a temporary difficulty, a likelihood of insolvency, imminent insolvency or current insolvency. This distinction determines whether it is advisable to negotiate, restructure or initiate the appropriate proceedings.

An early consultation does not require the company to file for insolvency proceedings. Its purpose is to understand the company’s actual position, document the decisions of the management body and avoid actions that could harm creditors or worsen the insolvency.

Recurring liquidity shortages

Cash flow does not allow the company to regularly meet payroll, taxes, contributions, supplier payments or financing obligations as they fall due

Enforcement proceedings and seizures

There are proceedings affecting accounts, assets, real estate or other property essential to maintaining the business activity

Accumulated public and employment-related debts

Widespread non-payment of tax obligations, Social Security contributions or wages may occur, which can indicate insolvency

Upcoming payments that cannot be met

The company anticipates that it will be unable to meet its obligations regularly and on time over the next three months

Loss of financing or strategic suppliers

Banks, landlords or suppliers have reduced credit, required guarantees or announced the termination of contracts

Conflict between shareholders or directors

The lack of agreement prevents urgent measures from being taken and increases the deterioration of the company’s financial position

Insolvency proceedings, pre-insolvency or restructuring: choosing the right path

The best solution is not always liquidation. Insolvency law allows action to be taken before insolvency becomes irreversible and measures to be designed to preserve viable businesses. The right approach depends on the level of insolvency, the debt structure, creditor support and the company’s ability to generate cash.

Notice of commencement of negotiations

Where there is a likelihood of insolvency, imminent insolvency or current insolvency, the debtor may notify the court that it has started or intends to begin negotiations to reach a restructuring plan. During the statutory period, certain enforcement proceedings against assets necessary for business continuity may be stayed, although there are limits, specific rules and claims that are not affected

Restructuring plan

It may include payment deferrals, debt write-downs, debt conversion or modification, asset sales, operational changes, new financing or corporate measures. It must be based on a viability forecast and on the correct classification of creditors. Where appropriate, court approval of the restructuring plan may be requested

Insolvency proceedings

It is used when the company is insolvent and needs to deal with its debts collectively, protect equality among creditors and decide between continuing the business through an arrangement or liquidation. The application must be prepared with complete accounting, legal and asset-related information

Types and forms of insolvency proceedings

Type
When it is used
Main objective

Voluntary insolvency proceedings

It is requested by the debtor itself upon recognising its insolvency

Organise the situation, comply with the legal duty and propose either continuation or liquidation

Compulsory insolvency proceedings

It is requested by a creditor or another entitled party based on external facts indicating insolvency

Protect the claim and subject the debtor to collective insolvency proceedings

No-asset insolvency proceedings

There are insufficient attachable assets, or their realisation does not justify the associated costs and charges

Declare and process the proceedings in accordance with the applicable special legal rules

Special procedure for microenterprises

Business owners or professionals with fewer than ten employees who meet the statutory financial thresholds

Continuation or liquidation using specific forms and procedural rules

Insolvency proceedings with a proposed arrangement

There is a viable business activity or structure that can continue under a payment arrangement

Approve debt write-downs, payment deferrals or other measures within the legal limits

Insolvency proceedings with liquidation

There is insufficient viability, or the orderly realisation of the company’s assets is requested

Sell assets or business units and apply the statutory order of payments

How we work on insolvency proceedings

Each case begins with an urgent assessment. The aim is to act within the applicable deadlines, preserve reliable documentation and choose the approach that best protects the business activity and the interests of the parties involved.

Step 1 - Insolvency and viability assessment

We review cash flow, upcoming maturities, financial debt, public debt, suppliers, payroll, assets, guarantees, litigation and cash flow forecasts. We determine whether there is a likelihood of insolvency, imminent insolvency or current insolvency

Step 2 - Strategy selection

We compare preventive negotiation, restructuring plans, voluntary insolvency proceedings, the special procedure for microenterprises, no-asset insolvency proceedings and liquidation. We also assess the position of directors, shareholders, guarantors and related creditors

Step 3 - Preparation of documentation

We organise the financial and legal report, inventory, list of creditors, annual accounts, contracts, employees, court proceedings and relevant transactions. We identify inconsistencies before filing the application

Step 4 - Filing and declaration

We prepare the application before the competent court and respond to any requests for correction or further information. The court order will determine, among other matters, whether the proceedings are voluntary or compulsory, the directors’ powers of administration and, where applicable, the appointment of the insolvency administrator

Step 5 - Inventory and list of creditors

We coordinate the asset information, review the classification of claims and defend the inclusion or challenge of items where necessary

Step 6 - Continuation, arrangement or liquidation

We negotiate a viable solution, prepare proposals and analyse transactions involving assets or business units. If continuation is not possible, we advise on an orderly and properly documented liquidation

Step 7 - Classification and liability

We defend directors and other affected parties when assessing whether the insolvency was fortuitous or culpable. We review prior conduct, accounting records, asset transactions and compliance with legal duties

Step 8 - Conclusion and subsequent stage

We manage the conclusion of the proceedings, the dissolution of the company where appropriate, registry-related matters and any outstanding obligations. We also analyse the consequences for guarantors, corporate groups or related proceedings

Advice for debtor companies and directors

For the debtor company, the priority is to avoid improvised decisions. The management body must be aware of the insolvency situation, convene and document its decisions, preserve the accounting records and assess the appropriate legal measures within the applicable deadlines.

Protection of business continuity

We analyse whether the company maintains a viable business activity and which debts, contracts, assets or business units should be preserved to ensure continuity

Compliance with the duty to file

We verify when the company became aware, or should have become aware, of its current insolvency and how pre-insolvency negotiations affect the statutory timetable

Review of prior transactions

We review selective payments, sales, guarantees, asset disposals and transactions with related parties to identify risks of clawback or classification proceedings

Commercial, tax and employment coordination

A business crisis often affects contracts, taxes, Social Security, employees, financing and shareholders. We integrate these areas into a single strategy, coordinating our employment lawyers, commercial lawyers and tax lawyers

Defense of directors

Liability does not arise automatically simply because the company enters insolvency proceedings. It is assessed whether there was intent or gross negligence in causing or worsening the insolvency and whether the legal requirements for liability are met

Defence of creditors in insolvency proceedings

The creditor must act quickly to notify its claim, review its classification and protect any guarantees or rights that may be affected. Not all debts receive the same treatment and the procedural position depends on the documentation and the nature of the claim.

Communication of the claim

We prepare the communication to the insolvency administrator within the general one-month period from the day following publication of the court order in the BOE, providing contracts, invoices, court decisions, guarantees and interest.

Classification and recognition

We verify the principal amount, interest, preferential status, guarantees, claims against the insolvency estate and any possible subordination. If the list does not correctly reflect the claim, we assess whether to challenge it.

Negotiation of an arrangement or restructuring plan

We analyse debt write-downs, payment deferrals, classes of creditors, guarantees and recovery prospects in order to decide whether to vote in favour or oppose.

Clawback actions and liability

When there are harmful transactions or relevant conduct, we assess the available actions to protect the insolvency estate and the creditor’s position.

Compulsory insolvency proceedings

If there are external facts indicating insolvency, we assess standing, the available evidence and whether it is appropriate to apply for compulsory insolvency proceedings against the debtor

What effects can insolvency proceedings have on the company?

The declaration does not necessarily mean the immediate closure of the company. The effects depend on the court order, the company’s viability and the stage of the proceedings. The following aspects should be analysed:

Management powers

The court may order the intervention or suspension of management and disposal powers, depending on the type and circumstances of the insolvency proceedings.

Enforcement proceedings and seizures

Certain enforcement proceedings may be affected or suspended, particularly in relation to assets necessary for the business, although exceptions and special rules apply to security interests and public-law claims

Contracts in force

The declaration of insolvency proceedings does not, in itself, terminate all contracts. Clauses allowing termination solely because insolvency proceedings have been declared may be ineffective, without prejudice to other breaches or court decisions

Employees

Employment contracts remain in force unless specific measures are adopted. Collective changes, suspensions or terminations are subject to specific insolvency and employment law rules

Business activity and business units

Business continuity, the sale of a business unit as a going concern or an orderly liquidation may be pursued, depending on viability and the interests of the insolvency proceedings

Debts and payments

Debts do not automatically disappear. They are classified and paid according to their nature, the available insolvency estate, the arrangement or the liquidation

Risks for directors and mistakes to avoid

Entering insolvency proceedings does not automatically make the director personally liable. The risk increases where their conduct has caused or worsened the insolvency through intent or gross negligence, where legal duties have been breached, or where actions detrimental to creditors have been carried out

Common mistake
Riesgo
Recommended action

Waiting without analysing the legal deadline

Possible worsening of the insolvency and greater exposure in classification proceedings

Date the assessment and document the decisions of the management body

Concealing or transferring assets

Clawback, culpable classification and other liabilities

Do not dispose of assets without prior legal and financial analysis

Making selective payments without proper criteria

Harm to the insolvency estate or questionable treatment among creditors

Review each essential, overdue or related-party payment

Abandoning the accounting records

It makes the application more difficult and may give rise to adverse presumptions

Close, reconcile and preserve the accounting records

Signing new guarantees hastily

It increases the exposure of the company, shareholders or directors.

Assess the consideration, viability and relationship with creditors

Confusing insolvency with accounting losses

Incorrect corporate or insolvency measures may be adopted

Analyse liquidity, enforceability and assets together

Documentation required to assess insolvency proceedings

The first meeting is more effective when the company provides an organised financial and legal overview. As a starting point, it is advisable to gather:

  • Annual accounts, balance sheets, trial balances, general ledger and cash flow forecasts.
  • List of creditors with amounts, due dates, guarantees and contact details.
  • Inventory of assets, rights, accounts, real estate, vehicles, stock and shareholdings.
  • Loans, credit facilities, leasing, factoring, guarantees and personal or real security.
  • Position with the Spanish Tax Agency, Social Security and public authorities.
  • List of employees, salaries, compensation and potential employment measures.
  • Essential contracts: leases, supply, distribution, licences, customers and suppliers.
  • Legal proceedings, enforcement actions, seizures, claims and formal notices received.
  • Relevant transactions from recent years involving shareholders, directors or related parties.
  • Corporate group information, related family-owned companies and cross-guarantees.

The final list will depend on whether the case is handled through ordinary insolvency proceedings, the special procedure for microenterprises, no-asset insolvency proceedings or a notice of commencement of negotiations.

How much does insolvency proceedings cost and how long does it take?

There is no single price or fixed duration. Fees and the timetable depend on the size of the company, the number of creditors and the volume of documentation, as well as the existence of employees, assets, guarantees, litigation, business units, incidental proceedings or a classification section.

Before starting, we carry out an assessment of the scope and explain which actions are included, which professionals may need to be involved and what external costs may arise. Specific rules and forms apply to microenterprise proceedings, but thorough legal and financial preparation remains essential.

Why choose Pellicer & Heredia as your insolvency lawyer in Alicante?

We are a law firm with more than twenty years of experience and our main office in Alicante. Insolvency situations require an approach that combines commercial law, litigation, tax, employment, banking and, in some cases, criminal law. Our approach integrates these areas so that the strategy goes beyond filing legal documents and responds to the operational reality of the company.
  • Preventive and procedural analysis. We assess both pre-insolvency alternatives and defence during the proceedings.
  • Advice for all parties. We act for debtor companies, directors, creditors, shareholders and investors interested in assets or business units.
  • Multidisciplinary coordination. We work with financial, accounting, employment and technical professionals whenever the case requires it.
  • Local and international experience. We advise companies and clients with business activities, shareholders, creditors or assets across different jurisdictions.
  • Clear communication. We explain scenarios, deadlines, risks and decisions in understandable language and with traceable documentation.

Frequently Asked Questions

It is a collective court procedure used when a debtor is unable to regularly meet its due obligations. Its purpose is to organise claims, protect equal treatment among creditors and determine whether the business can continue through an arrangement or restructuring solution, or whether the assets should be liquidated. It may apply to individuals or legal entities, although microenterprises are subject to a special procedure when they meet the statutory thresholds.
  • Current insolvency exists when the debtor is already unable to regularly meet its payments
  • Imminent insolvency occurs when the debtor expects that, within the next three months, it will be unable to meet its obligations regularly and on time.
  • Likelihood of insolvency exists when it is objectively foreseeable that, without a restructuring plan, the debtor will be unable to meet obligations falling due within the next two years.
The distinction determines which preventive or insolvency measures may be used.
The debtor must file for insolvency proceedings within two months from the date on which it became aware, or should have become aware, of its current insolvency. Current insolvency exists when the debtor is unable to regularly meet its due obligations. The calculation of the deadline must be assessed based on financial documentation and the specific facts of the case. If the commencement of negotiations is notified to the court, the timetable and the duty to file may be affected in accordance with the Insolvency Act.
The term pre-insolvency proceedings is commonly used to refer to the notification to the court of the commencement of negotiations with creditors. It may be filed in cases of likelihood of insolvency, imminent insolvency or current insolvency, provided the applicable requirements are met. Its initial effects last for three months and may include the suspension of certain enforcement proceedings against necessary assets. It does not protect against all actions, nor does it replace the preparation of a viable plan.
  • Voluntary insolvency proceedings are initiated by the debtor, usually to comply with its legal duty and organise the insolvency situation.
  • Compulsory insolvency proceedings are initiated by a creditor or another entitled party based on external facts indicating insolvency, such as unsuccessful enforcement proceedings or widespread non-payment.
The way the proceedings are initiated may affect the debtor’s powers and the procedural strategy, although the specific effects will depend on the court order.
Yes, when there is a viable business activity and it is possible to obtain financial support or creditor support. The available options may include a restructuring plan, an arrangement, new financing, the sale of non-essential assets or the transfer of a business unit. Continuation should offer a reasonable prospect of a better outcome than liquidation and must comply with the applicable majorities and legal protections. The earlier the crisis is assessed, the more alternatives are usually available.
It is the insolvency procedure applicable to business owners or professionals, whether individuals or legal entities, who employed an average of fewer than ten employees during the previous year and have an annual turnover of less than €700,000 or liabilities of less than €350,000. It may be handled as either continuation or liquidation proceedings. It uses specific forms and procedural rules, so the financial, employment and asset-related information should be prepared carefully.
No-asset insolvency proceedings exist when the debtor has no assets that can legally be seized or when the value of the unencumbered assets is not sufficient to reasonably cover the costs of realisation and the proceedings, among other circumstances established by law. The declaration is not equivalent to a simple administrative cancellation: it is published, allows certain actions by creditors and may lead to the appointment of an insolvency administrator if the requirements established by law are met.
The declaration of insolvency proceedings and the notification of negotiations may prevent certain enforcement proceedings from being initiated or may result in their suspension, but the effect is not the same for all claims or all assets. Special rules apply to security interests, public-law claims and assets necessary for the business activity. For this reason, each seizure must be reviewed individually, taking into account its date, the creditor, the affected asset and the stage of the proceedings before determining whether it may continue or must be suspended.
No, not necessarily. Insolvency proceedings may continue while the business remains operational, through an arrangement, the sale of a business unit or restructuring measures. Closure or liquidation may be considered when the company is no longer viable, when requested by the debtor or when the legal requirements are met. The decision should be based on realistic forecasts of cash flow, financing, orders, contracts, workforce and asset values.
The declaration of insolvency proceedings does not automatically terminate employment contracts. Employees continue working unless specific measures are adopted. Collective changes, suspensions, reductions in working hours or terminations are handled in accordance with employment and insolvency rules, with court involvement where appropriate. Salaries and compensation are given the applicable legal classification and, in certain cases, the Wage Guarantee Fund may intervene.
Not simply because the company enters insolvency proceedings. Liability may arise if it is proven that certain conduct caused or worsened the insolvency through intent or gross negligence, if the insolvency proceedings are classified as culpable or if other corporate or legal grounds apply. The accounting records, compliance with filing deadlines, asset transfers, sham transactions and dealings with related parties are also reviewed.
As a general rule, the declaration order requires creditors to communicate their claims to the insolvency administrator within one month from the day following publication in the BOE. The communication must identify the creditor, the amount, due date, characteristics, guarantees and supporting documentation. Late submission may affect the classification of the claim, so it is advisable to review the proceedings and act from the first publication.
The Insolvency Act establishes different categories of claims and payment rules. There are claims against the insolvency estate and insolvency claims, which may be privileged, ordinary or subordinated. Priority depends on the nature of the claim, the guarantees, the date and the asset affected. It is not correct to state that all creditors are paid in chronological order. The classification must be checked against the list of creditors and, if it is incorrect, it may be challenged within the applicable deadline.
The duration varies depending on the type of proceedings, the size of the debtor, the number of creditors and the quality of the documentation, as well as the existence of assets, litigation, employees, challenges or classification proceedings. No-asset or microenterprise proceedings may follow a more simplified structure than insolvency proceedings involving an arrangement, business units and numerous incidental proceedings. No lawyer can guarantee a fixed timeframe without reviewing the case and the court’s workload.
The cost depends on the work required: assessment, prior negotiation, preparation of the application, representation during the common phase, incidental proceedings, arrangement, liquidation or classification proceedings. A court representative, insolvency administrator, experts or other professionals may also be involved. Pellicer & Heredia prepares a proposal tailored to the scope of the matter and explains which actions are included, so that the company can plan the proceedings with clear information.

Speak to an insolvency lawyer in Alicante

If your company is accumulating unpaid debts, has been subject to seizures, is unable to meet upcoming payments or needs to negotiate with creditors, our team can help. We will review the key information confidentially and explain the next steps so you can act within the applicable deadlines.

Request an insolvency assessment