Why is a new Insolvency Act necessary in Spain?
The previous Insolvency Act entered into force in 2003 and was amended several times to adapt to the climate created by the 2008 financial crisis. These amendments made the text of the Act look disorderly and created uncertainty. The Restated Insolvency Act intends to clarify the insolvency regime as well as to introduce certain court and practice trends. The Restated Insolvency Act was published in the Official Gazette (Boletín Oficial del Estado) in May 2020 and entered into force on 1 September 2020, during the COVID-19 pandemic. The special and unexpected circumstances around the timing of publication and enforceability have resulted in certain aspects of the Restated Insolvency Act being subject to additional temporary amendments (see Temporary measures adopted due to COVID-19).
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