In the broadest sense, Insolvency Law is the set of procedures that facilitate the resolution of financial insolvency problems.
Insolvency Law regulates both the judicial procedure of the insolvency of creditors in court, as well as instruments that seek to solve that the debtor, company or individual, can avoid being forced to go to court, through out-of-court payment agreements or refinancing agreements and facilitate solving the problems of financial insolvency.
Restructuring and Insolvency are a transversal practice of Insolvency Law, which seek both to minimize the damage to creditors and to achieve solutions of viability and continuity for the debtor, considering that if this is possible, the possibilities of collection of creditors are increased, while the deterioration of the economic and business fabric of the company is reduced.
The Insolvency Law has undergone several modifications since its entry into force, which entails numerous interpretative problems and, basically, problems of legal certainty.
Economic circumstances may cause a company or an individual who has incurred debts of different types to be unable to meet them. This is generated when a company or individual falls into complicated situations with its income and is unable to meet its obligations. It will then find itself in a situation of insolvency and when it does not meet its obligation, its creditor may take action against the company’s assets. It would be desirable that debtor and creditors find an agreement that satisfies the interests of both parties and, if this is not possible, that the mechanism for the orderly liquidation of the property be established.
In this context it is necessary to have a legal solution and mediation to insolvency situations, both in the corporate and personal branch, regulating the various agreements between creditors and debtors, if possible. We offer joint advice, provided by professionals specialized in different areas of law who, in situations of business crisis, collaborate in the execution of the necessary measures in the field of commercial, financial, labor, real estate, tax and procedural law.
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At Monlex Abogados we have a network of experts in Bankruptcy, Restructuring and Insolvency Law to resolve any type of query. Our offices are located in Palma de Mallorca but we offer services to clients anywhere in the world.
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