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What it is

New commercial courts and measures on insolvent debtors

BOE step 7 of 7 · Passed

It is a government bill. Introduced by the Government. It was introduced on 17 July 2002. Introduced by: Gobierno.

Official title: Organic Government bill on insolvency reform, amending Organic Law 6/1985, of 1 July, on the Judiciary.

Follow this law

Source: Congreso de los Diputados, file 121/000102· updated 11 Nov

Automatic summary, not yet reviewed

  1. The judge handling the insolvency case can order measures against the debtor: monitoring their communications, requiring them to live in their town, or entering and searching their home. If they break the residence duty, house arrest can be ordered.
  2. These measures require a hearing with the Public Prosecutor and a reasoned decision weighing suitability, goal, proportionality and maximum duration. The debtor can appeal to the Provincial Court within five days.
  3. Commercial courts (Juzgados de lo mercantil Commercial courts specialized in business, insolvency and trade matters.) are created. They will hear insolvency matters with exclusive jurisdiction over enforcement actions and precautionary measures against the debtor's assets, certain labor matters, and other civil areas such as unfair competition, industrial property or transport.
  4. Provincial Courts will hear appeals against commercial court rulings, with one or more specialized sections. Alicante's sections will also act as Community trademark courts for all of Spain.
  5. Posts in these courts and specialized sections go to those who prove specialization through exams set by the General Council of the Judiciary, and appointees must complete training before taking up the post.
  6. The commercial courts start operating on September 1, 2004; until then, current first instance courts will handle their insolvency functions. The rest of the law takes effect the day after publication in the Official State Gazette.

Who it affects

  • Individuals and companies in insolvency proceedings: The judge can impose measures on their communications, residence and home.
  • Directors and liquidators of insolvent companies: These measures can also apply to them when the company is a legal entity.
  • Judges and magistrates: New specialized commercial court posts, with exams and mandatory training.
  • Workers of insolvent companies: The commercial court decides collective contract terminations or changes.
  • Companies with EU trademark disputes: Their cases go to the courts and the Provincial Court of Alicante.

Words worth knowing

Concurso de acreedores
Court procedure for when a person or company cannot pay its debts.
Juzgados de lo mercantil
Commercial courts specialized in business, insolvency and trade matters.
Medida cautelar
Provisional court order protecting the outcome of a case while it is decided.
Audiencia Provincial
Provincial court that reviews, on appeal, decisions by courts in a province.
Ministerio Fiscal
Public Prosecutor's office, which safeguards the general interest and legality in court proceedings.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries

Where it stands

How far did it get?

It took 7 of 7 steps. It reached BOE, and today it is passed.

  1. Introduced17 July 2002Someone registers the text in the Congreso.
  2. Admitted18 July 2002The Bureau of the Congreso accepts it and, for a members’ bill, the plenary decides whether to consider it.
  3. Amendments23 July 2002Groups propose changes.
  4. Committee15 October 2002A committee goes through the text in detail.
  5. Plenary25 March 2003All 350 deputies vote.
  6. Senate3 April 2003The Senate can pass it, amend it or veto it.
  7. BOE19 June 2003It is published in the Official State Gazette (BOE) and comes into force.
See the 11 official steps on a timeline
Sept 2002Dec 2002Mar 200311. 17 July 2002: Presentación22. 18 July 2002: Comisión de Justicia e Interior Publicación desde 18/07/2002 hasta 23/07/200233. 18 July 2002: Calificación44. 23 July 2002: Comisión de Justicia e Interior Enmiendas desde 23/07/2002 hasta 25/11/200255. 15 October 2002: Comisión de Justicia e Interior Mesa - Calificación desde 15/10/2002 hasta 15/10/200266. 15 October 2002: Comisión de Justicia e Interior Debate de totalidad desde 15/10/2002 hasta 17/10/200277. 26 November 2002: Comisión de Justicia e Interior Informe desde 26/11/2002 hasta 12/03/200388. 12 March 2003: Comisión de Justicia e Interior Dictamen desde 12/03/2003 hasta 25/03/200399. 25 March 2003: Pleno Aprobación desde 25/03/2003 hasta 03/04/20031010. 3 April 2003: Senado desde 03/04/2003 hasta 19/06/20031111. 19 June 2003: Concluido - (Aprobado con modificaciones) desde 19/06/2003 hasta 02/09/2003

Was there a plenary vote?

We have no plenary vote linked to this law in the Congreso’s data.

What happens next

What happens now?

It is law, or will be once published in the BOE. It comes into force on the date its own text sets.

The same initiative in the other chamber:

Published in the BOE: Organic Law 8/2003, of 9 July, on Insolvency Reform, amending Organic Law 6/1985, of 1 July, on the Judiciary.

Sources

Where does all this come from?

  • The data comes from the open files of the Congreso, the Senate and the BOE, unaltered.
  • Each deputy’s province is the one of their seat on the day of the vote.
  • We only say “passed” or “rejected” when the majority needed is certain; otherwise we say which side had more votes.

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