Personal liability of company directors in Spain

Do you have any invoice pending of payment and the company to which you issued the invoice has disappeared? Do you know how can you get your invoice cleared? If the company that once was your client has no assets now, and/or is not operating in the market, under certain circumstances you may be entitled to sue the directors of such company to settle the debt out of such directors´ personal assets.

Company directors in Spain have the obligation to apply for bankruptcy (concurso de acreedores) before the Commercial Courts within two months as from the date of awareness of the insolvency. Failure to do so may entail a very serious responsibility for the relevant Director: to pay personally pay for any unpaid debts after the company has disappeared from the market.

Spanish law provides a number of legal tools for creditors to settle debts out of the personal assets of the director of the debtor company. For such purpose, legal action before Spanish courts is required, and the judge must declare the personal liability of the director for failure to pay the company´s debts. Directors may be held responsible for any unpaid debts in the event that the company has stopped operating without following the legal steps required; i.e. unregister the company before the Mercantile Registry and Tax office, negotiate/cancel any pending liabilities, etc.

As a creditor, you may be entitled to seize the personal assets of the director of such debtor company. For further information regarding legal action against company´s directors, please use any of our consultation services.

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