How does an insolvency practitioner get paid?
Second Chance Law | Defense of the Debtor
- Second Chance Law | Defense of the Debtor
- Who pays the salary of an insolvency administrator?
- What can an insolvency administrator do?
- How are insolvency administrators appointed?
- The most recent
- How is the insolvency administrator’s remuneration calculated?
- What is insolvency administration?
- What do I have to do to become an insolvency administrator?
- How to PATENT a good IDEA so it won’t get stolen
- How long does it take for an insolvency administrator to arrive?
- When does the insolvency administrator cease to be an insolvency administrator?
- How many members form the body in charge of the insolvency administration?
- Videos of Ruaix Legal TV | Actuality
The fees of the insolvency administration are regulated in Royal Decree 1860/2004, of September 6, 2004. By regulating the remuneration of this body, the aim is to homogenize its remuneration throughout the territory, while at the same time offering a precise calculation table for those who must avail themselves of the insolvency mechanism.
RD 1860/2004 is, therefore, a rule that regulates the fees of the insolvency administration with the aim of providing predictability and legal certainty to the insolvency proceedings. It also links the remuneration of the body to the complexity and duration of the procedure, providing an incentive to these professionals for the development of their functions.
The Insolvency Law itself establishes that the fees of the insolvency administration must be proportional to the amounts of the assets and liabilities of the insolvency proceeding. In this way, their remuneration is linked to the foreseeable difficulties of the process.
In addition, this amount can be modulated again according to the concurrent circumstances. For example, it will be taken into account whether the administration is limited to intervening in the debtor’s patrimonial faculties or whether it replaces them.
Who pays the salary of an insolvency administrator?
If there is exoneration, FOGASA pays; otherwise, the employer pays. It is a subsidiary debtor, on the other hand, when its liability derives from the insolvency or bankruptcy of the employer. Its payments, in this case, are conditional on the insolvent or bankrupt company’s financial situation.
What can an insolvency administrator do?
The work of the insolvency administrator consists of evaluating, analyzing and verifying that the company declares insolvency in compliance with all legal requirements and formalities. He is also in charge of analyzing the inventory of assets and relating it to the creditors’ debt.
How are insolvency administrators appointed?
Who appoints the insolvency administrator? The appointment of the insolvency administrator will be made by the judge competent to hear the insolvency proceeding.
The most recent
In September 2020 I was appointed insolvency administrator of an industrial carpentry with six workers dismissed by ERE without compensation. The bankruptcy was due to the loss of their main client and the difficulty to replace him.
In these 11 months until its conclusion, besides making the bankruptcy reports, carrying out the accounting and tax obligations, signing the bankruptcy certificates so that the workers can collect from FOGASA, collect from debtors, analyze all open lawsuits and make the qualification report (fortuitous); we managed to sell the stock, collect from the insurance for the theft of two vans, repaired the damage of the ship by Filomena and finally managed to sell the business after an auction by a specialized entity.
It is very important (and here is the key) to say that the final buyer made it clear that he was buying because he trusted the insolvency administration (in this case us, but I speak for everyone) because he had never bought insolvency assets and did not know the financial, accounting, tax or labor consequences of buying goods or production units from an insolvent company and that he would never have done so without an insolvency administrator. All his doubts were solved as we did with the rest of the potential buyers.
How is the insolvency administrator’s remuneration calculated?
The remuneration of the professional insolvency administrators during each of the months of the duration of the arrangement phase will be equivalent to 10 percent of the remuneration approved for the common phase.
What is insolvency administration?
The insolvency administration is an entity with the power to intervene in a debtor company. Thus, it controls and supervises it within the framework of an insolvency proceeding. … The purpose of the insolvency administration is to ensure that the provisions of the law are complied with.
What do I have to do to become an insolvency administrator?
Be a practicing lawyer with at least five years of professional experience or an economist or account auditor. Have specific accredited training in insolvency law. Be registered in the list of insolvency administrators that is made annually.
How to PATENT a good IDEA so it won’t get stolen
The remuneration of the curators who were appointed in the collective execution proceedings in Rome, of the insolvency administrators mentioned in the Labyrinthus creditorum of Salgado de Somoza, of the trustees and receivers (CCom of 1829 and LEC of 1881), of the court receivers (Law of Suspension of Payments of 1922) and of the insolvency administrators of all the countries of the world, has never been subject to any expiration date, and neither the Insolvency Law 22/2003, does not include it. There is not a single article that says so. Evidently, there are some who think they see it, proof of which is the “Revised” text of the Insolvency Law. But our current Insolvency Law does not consider the remuneration of the insolvency administration a credit against the mass, nor has it considered it in its more than twenty reforms or “repairs”.
Do our legislators not think that this is what is rational, fair, normal and what happens anywhere in the civilized world? Where has it been seen that some professionals work and, on most occasions, do not receive their fair stipend?
How long does it take for an insolvency administrator to arrive?
Depending on the court in which the case is heard, it can last from 6 months to 4 years, but the most frequent is between 6 months and one year.
When does the insolvency administrator cease to be an insolvency administrator?
Termination of the insolvency administrator
The insolvency administrators and their assistants may cease to hold office at their own free will or for reasons beyond their control. The current LCon contemplates three types of termination: resignation, recusal and separation.
How many members form the body in charge of the insolvency administration?
27, LC since January 1, 2012, this body of administration of the insolvency proceeding will generally consist of a single member, except in the special cases that the Law itself establishes, in which there will be two members.
Videos of Ruaix Legal TV | Actuality
The Insolvency Administration is entrusted with very important functions, which are indicated below, which must be exercised in a collegiate manner, except for those that the judge assigns individually to one of its members. When the complexity of the proceedings so requires, the judge may authorize the delegation of certain functions to assistants.
The essential functions of the Insolvency Administration are to intervene in the acts carried out by the debtor in the exercise of its patrimonial faculties or to substitute the debtor when it has been suspended in this exercise, as well as to draw up the report of the insolvency administration to which the inventory of the active mass, the list of creditors and, if applicable, the evaluation of the proposals of agreement presented must be attached.
The Insolvency Administration will have to decide on the inclusion of all the credits disclosed in the proceedings, both those that have been communicated within the term and in the form established by law and those that result from the books and documents of the debtor or that by any other means are on record in the insolvency proceedings. In the list of recognized credits, the credits will be classified, in accordance with the law, as privileged -with special or general privilege-, ordinary and subordinated.