Introduction
Succession mortis causa sometimes poses significant legal challenges, especially when the deceased leaves outstanding debts and multiple potential creditors. The Insolvency Law provides for the possibility of declaring the estate insolvent, a mechanism that allows the estate to be subjected to an orderly procedure for liquidation and satisfaction of claims. This mechanism responds to the need to protect the interests of creditors and to prevent hasty acceptance or individual administration from leading to the squandering or concealment of assets.
Legal basis for the inheritance contest
Inheritance proceedings constitute a legal solution to the insolvency of the estate. They can only be declared while the inheritance has not been accepted outright, which preserves the possibility for the heirs to request the benefit of inventory — an effect that occurs simply by the heir making the request, provided that it is made within the legal period of six months (see AAP Barcelona 122/2025, of 26 June 2025, and see also SAP Ciudad Real 323/2024 of 6 November 2024). In addition, this type of insolvency allows for the joint declaration of related insolvencies, as may occur in the case of two spouses (see SAP Alicante 99/2025 of 11 June 2025).
The right to request the insolvency proceedings corresponds to both the administrator of the estate and the heirs and creditors of the deceased debtor, thus ensuring the involvement of all interested parties in the proper administration and liquidation of the estate. The law distinguishes between voluntary and compulsory insolvency proceedings depending on the party initiating the proceedings: proceedings are voluntary when the application is made by the administrator of the estate or an heir, and compulsory in all other cases, particularly when the initiative is taken by the creditors. There are, however, exceptional cases in which bankruptcy proceedings will be considered necessary even if the application is filed by an heir or the administrator, if another application against the debtor or the estate has been admitted for processing in the previous three months.
Once the inheritance has been declared bankrupt, the bankruptcy administrators assume exclusive responsibility for the management and disposal of the estate, a power that cannot be modified by the judge. This guarantees unity of administration and transparency in the liquidation of the assets, preventing the heirs from freely disposing of them until the conclusion of the proceedings and preserving the rights of creditors and the legally established order of priority.
The death or declaration of death of the bankrupt person does not extinguish the bankruptcy (ATS 1878/2009 of 25 September 2012), which continues to be processed as a bankruptcy of the estate. The insolvency administrators continue to manage the estate, while the legal representation of the inheritance corresponds to the person who holds that status in accordance with the law, or to the person designated by the heirs. During the insolvency proceedings, the inheritance remains undivided, thus preventing the fragmentation of the estate and ensuring its orderly liquidation.
Conclusions
The inheritance contest is a fundamental instrument for the protection of creditors and the transparent management of inherited assets in situations of insolvency. Its regulation seeks to prevent the dispersion of assets and guarantee the satisfaction of the deceased’s debts, while preserving the rights of heirs and interested third parties. At Belzuz Abogados, S.L.P., we believe that proper knowledge and application of this legal concept is essential for successfully addressing contentious inheritance cases and safeguarding legal certainty in the transfer of assets.