SHOULD I ASK THE DECLARATION OF COMPETITION? (5)

We must differentiate between the current insolvency and insolvency imminent.

If insolvency is imminent, only the debtor has the right to file for bankruptcy. Creditors, they can not.

In the event that the credit is current, the debtor is obliged to apply the insolvency. As Article 5 Insolvency Act, the debtor must request the declaration of insolvency within two months from the date on which he met or gotten to know his state of insolvency.

The debtor is presumed to have known the state of insolvency when any of the causes which serve to seek the assistance required by a creditor, namely:
1.- Implementation have been discharged or pressure against the debtor without the free goods but enough to prove payment.
2.- The general cessation current payment obligations of the debtor.
3.- The existence of liens outstanding performances in general affect the debtor's assets.
4.- The uprising or hasty or ruinous liquidation of their property by the debtor.
5.- The widespread failure of any of the obligations following classes: the payment of tax obligations payable during the three months preceding the bankruptcy petition, the payment of social security contributions, or the payment of wages and allowances and other benefits derived from labor relations corresponding to the last three months.

Article 5 to, allows the debtor to get a extra term 3 months to negotiate with creditors a refinancing agreement, (requesting the court) after which, if it has reached an agreement to refinance, or the countries required for the admission of a proposal for agreement, must request the declaration of insolvency within the next business month, unless it was not in a state of insolvency.

The breach of the duty to file for bankruptcy can have serious consequences for the debtor, it is presumed malice or gross negligence, unless proven otherwise, in sectional qualifying.
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