The Spanish Congress has eventually approved on 19th June 2003 the new Bankruptcy Law, and ordered the publication of it. In any case, the general effects of this law will only rule after 1st September 2004.
Few legal reforms were so important as this. The traditional denomination of Labyrinthus creditorum concurrentium is the best definition for the old web of partial laws that currently rule the bankruptcy proceedings. The core of the regulation of the insolvency in Spain is the Law of 1829. This norm, which was billed in the most tyrannical period of the XIX century in Spain, was absolutely out of date. It lived in a virtual world, far from the trade needs of this age.
The new law tries to ease the old maze of norms, by uniting in a single text all norms of the proceeding and of the substance of the insolvency, for enterprises and individuals. Fortunately, the old distinction between bankruptcy and suspension of payments is eroded. The insolvency is a unique problem, and this is solved in only one flexible law. The unification is not complete because, in spite of the derogatory disposition, some norms of the classification and ranking of the credits continue allocated in the civil code.
The new law has the merit of creating two different proceedings, one ordinary and other abbreviated for small bankruptcies. The abbreviated proceeding is more quick and the management of the bankruptcy is simplified.
The new law admirably decides to leave the administration of the proceeding in the hands of technicians. Thanks to this decision, the small creditors are alleviated in their burden in the general meetings and management of the bankruptcy. The core of the management will be lead by skilled attorneys and economists, and the meeting of creditors is reserved for specific cases, such as the approval of a pact of payments with the debtor.
This new law, like an infant free of sin, looks more clear and usable for the practical lawyers than the old norms. In any case, the instrumentality and fullness of this new law will be proved in the daily practise. The wish of all is that this new law ease the small creditors in their claims, and enable that the mercantile decisions to be more foreseeable.