Our firm has an active bankruptcy practice, particularly with regard to the representation of foreign creditors’ rights in Spanish bankruptcies. As is the case in most countries, it is critical to submit claims against bankrupt companies and individuals in a timely manner in order to ensure the most favorable status for a given creditor, whether secured, preferred, ordinary or subordinate. While the administrator in bankruptcy, named by the relevant commercial court, will typically notify creditors appearing in the bankrupt’s records if, for some reason, a credit has not been recorded, it is important for a creditor notify the administrator of such claim. Where solvency of a customer of debtor is questionable, we regularly advise our clients to have us monitor their status both via company rating data bases and official Spanish registries and publications.
Participation as a creditor in bankruptcy almost always requires the grant of a power of attorney to a Spanish “abogado” and “procurador” (See futher details fo these types of legal professionals in our “Important Points on Spanish Dispute Settlement”.
