When a company cannot pay its debts and declares itself bankrupt, any person or company that has outstanding debts with the bankrupt company is considered a bankruptcy creditor. The reform of the Bankruptcy Law in September 2022 has completely changed the legal landscape. This new regulation strengthens the position of the bankruptcy creditor and creates more effective tools for recovering debts.
The current law seeks quick solutions before companies are forced to close down permanently. For the insolvency creditor, these changes mean more guarantees and greater involvement in the entire process. It also allows them to actively intervene in decisions that affect the recovery of their money.
Expanded rights of insolvency creditors under the new legislation
The reform has considerably strengthened the rights of insolvency creditors. They now have more legal tools to protect their interests and control the development of the insolvency process.
The first basic right is to provide all the necessary documents proving that the debt actually exists. This documentation must include contracts, invoices, delivery notes or any other evidence confirming the origin of the debt. It must also specify the exact amount, the dates when the debt was incurred and when it was due to be paid.
The insolvency creditor may request that their debtor be declared insolvent. If they have several debtors belonging to the same group of companies, they may request that all insolvency proceedings be handled together. This measure speeds up the proceedings and avoids duplication of costs and unnecessary paperwork.
The new law ensures that creditors are publicly notified when insolvency proceedings commence. This information is published in the Official State Gazette, the Public Insolvency Register and the Commercial Register. Once published, creditors have exactly one month to come forward to the insolvency administrator.
They may also participate in the assessment of the insolvency proceedings. This means that they may provide evidence to demonstrate whether the company acted in bad faith or negligently prior to the insolvency proceedings. If their debt exceeds one million euros or represents at least 5% of the company’s total debts, they may prepare their own assessment report.
Another important right allows you to submit arguments throughout the process. The insolvency creditor can defend themselves if they disagree with the proposals of the insolvency administrator ( ). They can also oppose agreements that they consider detrimental to their interests.
Obligations to be fulfilled by the insolvency creditors in the process
With new rights come specific obligations that the insolvency creditor must respect. These obligations ensure that the process runs smoothly and protect the rights of all parties involved.
The first fundamental obligation is to respect the agreements reached in the negotiations. Once an agreement has been signed or a settlement reached, the insolvency creditor cannot demand different or additional conditions. This rule provides legal certainty and facilitates the reaching of agreements between the debtor and creditors.
They must also accept that other persons may pay the debt on behalf of the debtor. For example, if a relative or partner of the debtor wishes to pay the debt, the insolvency creditor cannot refuse. However, they are not obliged to accept that this third party becomes the new debtor.
When the place where the debt is to be collected changes location, the insolvency creditor may claim compensation for the extra costs this entails. This compensation must cover the additional travel or management costs resulting from the change.
The insolvency creditor must participate in good faith in the negotiations. They cannot put up unnecessary obstacles or reject reasonable proposals without justified reasons. The law encourages collaboration between the parties to find solutions that benefit everyone.
Better guarantees for the insolvency creditors in 2025
Current legislation gives priority to saving viable companies rather than closing them down. Insolvency proceedings seek to obtain the most satisfactory solution possible for all creditors when a company is unable to meet its obligations on a regular basis. For the insolvency creditor, this increases the chances of recovering at least part of what is owed to them.
The new legal framework encourages debtors and creditors to negotiate before going to court. Early talks and out-of-court settlements have become real and effective alternatives. These solutions reduce legal costs and speed up the resolution of economic disputes.
The insolvency administrator now plays a more active role in protecting the interests of the insolvency creditor. Their role as mediator facilitates dialogue between the parties and helps to find balanced solutions. This specialised professional intervention significantly improves the outcome of the process.
When it is impossible to save the company, the new law ensures an orderly and efficient liquidation. The aim is to minimise losses for the insolvency creditor and other interested parties. Procedures have been simplified to reduce administrative costs and make better use of the value of the assets being sold.
The participation of the insolvency creditor in important decisions is another significant advance. Their opinion counts in votes on restructuring plans and agreements with creditors. This greater participation reinforces the legitimacy of the decisions taken.
The Public Insolvency Register contributes to improving legal certainty by allowing any insolvency creditor to consult up-to-date information on ongoing proceedings. This transparency facilitates informed decision-making.
Confianz is a reliable partner to help you navigate this complex legal landscape. Our team of specialised professionals understands the particularities of each insolvency situation. We offer comprehensive advice for both companies in difficulty and creditors who want to protect their rights.
Confianz’s practical experience in insolvency proceedings ensures a personalised and effective approach. We analyse each case individually to design the best debt recovery strategies. Our goal is to maximise the chances of recovery for the insolvency creditor within the current legal framework.
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