Bankruptcy Law and Insolvency

These flashcards cover the key concepts and definitions from the lecture notes on bankruptcy law and the insolvency process.

What is the bankruptcy process characterized by?

A judicial process ruled by specific law ensuring equal treatment of all creditors.

What law governs bankruptcy in Spain?

Ley Concursal.

What are the roles involved in the bankruptcy process?

Bankruptcy Judge, Debtor, Creditors, Bankruptcy Administrator.

What is the first stage in the bankruptcy process?

Common Stage, which includes the application for bankruptcy proceedings.

Who can declare bankruptcy?

Any debtor, whether a natural or legal person.

What obligation do administrators of a legal person have regarding bankruptcy?

They have an obligation to act if bankruptcy occurs.

What are the causes that justify the state of bankruptcy?

Frustrated seizure of goods, general noncompliance in payments, breach of obligations like taxes, social security, and salaries.

Who appoints the bankruptcy administrator?

The Bankruptcy Judge.

What qualifications are required to be a bankruptcy administrator?

A lawyer or auditor/economist with a minimum of 5 years’ experience.

What are the types of credits in bankruptcy?

Credits against the estate, bankruptcy credits, privileged credits, and ordinary credits.

What happens during the agreement stage of bankruptcy?

Debtor and creditors discuss waivers, postponements, or converting credits into shares.

What occurs if a debtor does not comply with the agreement?

The liquidation phase is opened.

What is required for the qualification stage of bankruptcy?

A bankruptcy administrator's report is necessary to determine potential culpability.

What can cause a bankruptcy process to conclude?

Compliance with the agreement or end of liquidation.

What special situation allows for a 'Second Opportunity' in bankruptcy for natural persons?

If the debtor is not sentenced for economic crimes and is not guilty of bankruptcy.