Bankruptcy
law
The Think it Legal team is made up by economists and lawyers because most of the actions and decisions that a company must make require a deep knowledge of those two sciences.
The Think it Legal team is made up by economists and lawyers because most of the actions and decisions that a company must make require a deep knowledge of those two sciences.
Contrary to popular belief, the spirit of Bankruptcy Law is focused on preventing that ailing companies end up ceasing their activity and liquidating their assets. The work we do at Think it Legal is based on anticipation —90 % of the bankruptcy proceedings end up in settlement because of the lack thereof—, on getting a deep and comprehensive knowledge of the economic, financial and equity situation of the company in order to offer our clients the best bankruptcy solution possible.
In the case of companies, the option of bankruptcy liquidation is aimed to the termination of the company (”muerte registral” or termination at the registry) for those cases in which there is no possibility of an orderly liquidation (compilation of an asset inventory for debt settlement), since it is precisely the existence of an asset imbalance which makes it impossible to settle all debts, and there isn’t the chance either of restructuring for its survival.
At Think it Legal we analyze the behavior of the management body and the obligations they have fulfilled during the company management, all this from the perspective of the potential liabilities —both criminal and civil— they may have incurred in and that may affect the assets directly. Mistakes as ordinary as the late filing for insolvency proceedings might involve the worsening of said insolvency and, thus, the penalty of the amount which aggravated the insolvency over the management body’s equity. Another example of liability that is quite common is the derivation of public debt liability, whether tax- or Social Security-related, due to the failure to comply with the obligation of bankruptcy filing when it has been foreseen that said debt will not be settled.
Since February 25th, 2015, the Second Chance Law has been one of the most transcendent laws regarding the protection of both consumers and business owners. Until the inclusion of article 178 bis on the Bankruptcy Law 22/2003, only individuals acting as business owners could have their debt remitted and extend the out-of-court arrangements extension. Now, both individuals (or natural persons) and business owners can benefit from a law created to promote the reinsertion of all those people who, due to the circumstances (job loss, dramatic reduction of household income, foreclosure, business owners with personal assets as collateral, etc.), find themselves in an insolvency situation which can hardly be turned around without starting from scratch or going through a real debt restructuring that suits their current economic situation.
At Think it Legal we have a commitment with the Second Chance Law which goes beyond the professional plane and the more than 100 processes we have accumulated. Our knowledge has turned us into a reputable voice in the field and we take part in congresses, lectures and initiatives with public institutions with the aim of further disseminating the second change mechanism, still quite unknown nowadays, not only by the citizens but also by a great part of the lawyers.