SPANISH bankruptcy law, in relation to insolvency and elimination of debts, stipulates that there are a number of actions which are unacceptable and which if proven can negate the insolvency process.
Guilty Insolvency
If a bankruptcy is declared guilty, it means that it is understood that the bankrupt or insolvent is responsible for the insolvency.
Legally, this can be declared, when the debtor, voluntarily or in a negligent way, has created or worsened the insolvency.
However, the insolvency will be classified as unplanned, if it is not the fault of the person declared insolvent.
For example: if a self-employed person becomes ill, is unable to work and accumulates debts which results in their insolvency. In thi…
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