The latest extension of the bankruptcy moratorium ends this Thursday as authorities consider a pause in filings. Experts anticipate a threshold in bankruptcy activity, though the impact may unfold gradually. The new deadline for presenting contest statements will take effect on September 1, signaling a two month window for action.
During a press briefing after a cabinet meeting, First Vice President and Minister of Economic Affairs Nadia Calviño stated that the margin exists to prevent triggering processes that do not reflect real solvency. The reform aims to streamline bankruptcy procedures, with Congress expected to approve the measure on Thursday, though it still must pass the Senate.
Legal observers from the Legal Network cooperative note that once the moratorium expires and the two month period ends, Spain could see a surge in what has been described as several dozen thousand pre-bankruptcy concerns that resemble zombie companies. In the absence of active competition, some firms faced no choice but to enter bankruptcy procedures during the pause.
Specialist data show that bankruptcy filings rose sharply in recent years. In 2021, proceedings increased 37.5 percent compared with 2020, and 57 percent from 2019. The General Judicial Council reported this trend, with analysts predicting a continued rise through 2022 as markets recover from the prior real estate downturn. Some projections suggest the level of filings could exceed historic peaks by the next year, as the economy stabilizes and lenders reassess risk.
law reform
The reform is designed to ease the path to pre-bankruptcy status and to speed up the system to prevent widespread liquidations. José Miguel Tabares, deputy dean of the Spanish Registrars, explained that while the overall legislation is still under discussion, the changes aim to bolster small businesses and freelancers. Reports from El Periódico de España, a Prensa Ibérica publication, note that many firms faced bankruptcy with liabilities around 20,000 euros, divided between tax authorities and social security contributions.
Under the proposed framework, the first 5,000 euros of debt would be fully exempt. For any remaining balance, relief would be 50 percent, up to a maximum of 10,000 euros. For example, a business owner with an 8,000 euro debt to the Treasury could see 6,500 euros discharged under the new rules. If the debt totals 12,000 euros, the relief could amount to 8,500 euros. These measures target a faster, more predictable path through pre-bankruptcy processes and aim to stabilize small firms facing liquidity stress.