Business Crisis: Legal Regime of Insolvency

Flashcards about Business Crisis and Insolvency

Restructuring Plans

Pre-insolvency alternatives to manage business crises.

Insolvency Proceeding

A legal process addressing a company's inability to pay its debts.

Inventory of Assets

A detailed list of a company's possessions, evaluated during insolvency.

List of Liabilities

A comprehensive record of a company's debts and obligations.

Agreement (Convenio)

A payment agreement between the debtor and creditors

Winding-Up (Liquidación)

The process of liquidating a company's assets to pay off debts.

Pre-Insolvency Proceeding

A non-mandatory action taken to avoid insolvency.

Insolvency Courts Proceeding

A mandatory legal process that results in agreements or winding-up.

Insolvency Receiver (Administrador Concursal - AC)

Person appointed during insolvency to manage equity disposals.

Reintegration Action

The cancellation of detrimental acts of disposition of assets made within 2 years of insolvency.

Insolvency Debts

Debts originated before the judicial declaration of insolvency.

Claims against the entire insolvency estate

Salaries of the last 30 days, expenses for the insolvency proceeding

Debts with Special Privilege

Mortgage loans

Debts with General Privilege

Public law credits,tort liability, salaries

Ordinary Debts

Debts that do not correspond to any other class

Subordinated Debts

Late announcements, debts with partners, sanctions

Fortuitous Insolvency

When there is no legal cause that implies the fraudulent classification.

Fraudulent Insolvency

When there is fraud or gross negligence in the generation or aggravation of the insolvency.