Ecija obtains the exoneration of payment of more than €1,7m to two individuals who filed for bankruptcy protection

On April 26, 2024, the Mercantile Court nº 18 of Madrid issued two Orders, in bankruptcy proceedings of individuals, in which it agreed to grant the exoneration of the unsatisfied liabilities of two individuals, approving the payment plan proposed by their lawyers, which will mean that the debtors will not have to pay the creditors more than 1,700,000 euros.

The bankruptcy of the individuals was initiated as a result of the personal guarantee of the credit policies that an events company, of which one of them was administrator and partner, had to subscribe in order to overcome the period of inactivity and absence of invoicing during the Covid – 19.

The company, in view of the practical non-existence of activity for a longer period than expected, was unable to pay for these policies, so it had to file for insolvency proceedings, which ended with the liquidation of the company and with the classification of the insolvency proceedings as fortuitous.

The Judge of the Mercantile Court nº 18 of Madrid, in the proceedings of bankruptcy of individuals, highlights in the two orders the perfect presentation of the payment plans made by the legal management of the bankrupt parties, which has granted the exoneration of the unsatisfied liabilities on their part, and approved the proposed payment plan.

José Mª Abella, partner of Ecija‘s Litigation and Insolvency practice, has led the advice together with senior lawyer, Carla Boixareu.