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Extension of the insolvency moratorium until June 30, 2022

ampliación de la moratoria concursal hasta el 30 de junio de 2022

Royal Decree-Law 27/2021, of November 23, extending certain economic measures to support the recovery, has established a new extension of the insolvency moratorium until June 30, 2022.

This moratorium means, on the one hand, that the debtor who is in a state of insolvency will not have the duty to request the declaration of insolvency, whether or not the debtor has notified the competent court of the opening of negotiations with creditors to reach a refinancing agreement, an out-of-court payment agreement or adhesion to an early proposal for a composition agreement.

On the other hand, it prevents the admission for processing by the judges of applications for insolvency proceedings that have been filed since March 14, 2020, giving preference to the creditor’s voluntary insolvency applications, even if they were filed after the date of the application for insolvency proceedings.

As from the deadline of the insolvency moratorium, which is set on June 30, 2022, the two-month term established in Article 5.1 of the Insolvency Law is maintained for individuals or entities in a situation of insolvency to file with the Court their request for a declaration of insolvency proceedings.

This implies that, necessarily, the requests for voluntary insolvency proceedings must be received by the respective Courts prior to September 1, 2022.

Failure to comply with this deadline could have undesirable consequences for debtors in insolvency, since, on the one hand, it will allow (as from September 1, 2022) the admission to the proceedings of insolvency proceedings filed by creditors and, on the other hand, it could have negative effects in the qualification phase, since it is one of the legal presumptions of guilt of the insolvency proceeding.

In the latter case, the persons affected by the qualification (usually the administrators) could be sentenced to compensate the damages caused or to bear all or part of the insolvency deficit.

At Portillo Estudio Legal we offer our services to evaluate your insolvency situation and to carry out the entire insolvency proceeding, if necessary.