Introduction
The current economic context is testing the strength of thousands of small businesses and professionals, who are forced to face insolvency proceedings in an increasingly demanding environment. The daily reality shows a notable increase in insolvency proceedings among self-employed workers and micro-enterprises, which highlights the need for mechanisms adapted to their characteristics and resources.
The Insolvency Law has responded to this situation with a special procedure that allows micro-enterprises, those with fewer than ten employees and an annual turnover of less than €700,000 or liabilities of less than €350,000, to manage insolvency more quickly and at lower cost. At the commercial law department of Belzuz Abogados, S.L.P. in Madrid, we are committed to providing strategic advice that allows our clients to take advantage of this regime and protect the viability of their business and the rights of their creditors.
The Continuity Plan: an opportunity to maintain business activity
One of the most attractive elements of the special procedure is the possibility of submitting a Continuity Plan. This tool allows the debtor to negotiate directly with creditors to restructure the debt and adapt payments to the reality of the business. The objective is clear: to facilitate the preservation of business activity and avoid the hasty closure of viable companies.
The Continuity Plan may include measures such as debt relief, deferrals or credit conversion, always seeking a balance between business survival and creditor satisfaction. Experience shows that, in many cases, flexibility and transparency in negotiations are key to reaching agreements that allow jobs and economic activity to be maintained.
However, the viability of the Continuity Plan often depends on the weight of public and labour credits in the liabilities, as well as the ability of the parties to reach a consensus. Proper preparation and presentation of the Continuity Plan, with the support of specialised professionals, significantly increases the chances of success and business continuity.
Supplementary application of the Insolvency without Assets Procedure
In cases where the micro-enterprise lacks sufficient assets to pay its creditors, the special procedure allows for the supplementary application of the Insolvency without Assets Procedure. This solution, endorsed by commercial courts, facilitates the rapid and economical conclusion of the process, avoiding unnecessary burdens on the debtor.
Insolvency without Assets speeds up the liquidation and closure of the company, but guarantees creditors the possibility of taking action for restitution or requesting a finding of fault when necessary. The key lies in adequate communication and publicity of the procedure, so that creditors can exercise their rights in a timely manner and avoid situations of defencelessness.
Conclusions
The special procedure for micro-enterprises is establishing itself as a modern and effective tool for dealing with insolvency in the field of small businesses and the self-employed. The possibility of negotiating continuity plans and the supplementary application of the insolvency without assets procedure offer solutions adapted to the reality of micro-enterprises, facilitating both the continuation of the business and an orderly and efficient liquidation.
In the Insolvency Law Department of Belzuz Abogados, S.L.P.‘ Madrid office, we are committed to supporting micro-enterprises in this process, providing specialised and strategic advice to ensure the efficient management of insolvency and the protection of the interests of all parties involved.