Second Option to Settle Extrajudicial Debts – New Decision

Joint Ministerial Decision of the Ministries of the Economy, Labor and the Economy, to Give a Second Chance to Debtors Wishing to Join the Alternative Dispute Resolution Mechanism

The Joint Ministerial Decision should be published shortly in the Government Review and its coming into force

According to the Joint Ministerial Decision, debtors of outstanding claims have the opportunity to correct and complete their original claim (19659003) Based on the JMC Plan, the following issues are dealt with:

Completion of Data – Correction of Request for Re-submission of Applications, Errors

• Details of the application may be completed if the Debtor, Coordinator or Participating Creditor notes the details 39, absence, at the latest by the deadline
• If the debtor or the participant the creditor is informed, the coordinator which sets a period of 10 days to complete the default of the debtor, unless the absence consists of the absence of a debtor, the period is therefore fixed at 20 days
• By the same procedure and in the deadline (19659009) The procedure for examining requests for extension

  At any point in the negotiation process, we are involved in the debt negotiation process, the coordinator or the participating creditor. a party (debtor, participating creditors, experts) may request an extension of the legal deadline. The application includes:

  1. the specific action for which the extension is sought
  2. and
  3. the justification for the extension, which must be accompanied by supporting documents

  of the application and its new presentation

  If, during the proceedings and until the creditors make counterclaims, it is established that there are irregularities or errors in the application that, at the time from their detection, can not be corrected their introduction to and / or modification in the electronic platform of an out-of-court settlement mechanism, the debtor may, following a written request addressed to the Special Secretariat for the management of private debt, canceling its application by submitting it to the electronic platform

  • of the application does not result in the loss of the applicant's basic data (NIF, name, address) which are still kept on the electronic platform or the unique number against, which continues to accompany the request and after the new presentation of it.
  • Once the coordinator has become aware of the irregularities or errors, and in any event without drafting the minutes, he informs the debtor, by notifying the creditors, of the existence of the deficiencies or the errors and invites the debtor must, within 10 days of sending a request to strike the application and its new presentation
  • The debtor must submit a written application to the EPOJ, who renders a decision on the non-rectification of the application and / or defects in another manner and decides to strike the application and resubmit it, and may, at its reasonable discretion, order the debtor to Cancel and submit it again.
  • Under the same procedure, debtors claims may require that the application be struck out and resubmitted to include the debts that are the subject of a settlement, that is to say the debts contracted up to December 31, 2017.
  • In case of cancellation and resubmission of the application, procedure resumes by checking again the entirety of the coordinator's request.

  New Time

  The completion of the verification of the completeness of the application and the accompanying documents of the resonator is carried out within 10 days of the acceptance of the appointment . The coordinator must complete the required percentage of the quorum of participating creditors within five days after the expiration of the ten days following notification of the creditors' appeal. The deadline for the invitation of participating creditors to vote on the initial proposal for settlement of the debtor is set at 5 days after the deadline for submitting counterclaims.

  Deadline for submission of additional information

  The deadline for submission of additional supporting documents is 5 days after the submission of the corresponding application to the debtor by the participating creditor. The debtor's refusal to provide them, if requested by a participating creditor representing a percentage of the total claims against the debtor of less than 25%, may be expressed within this five-day period. In case of disagreement, and if 60% of the creditors decide to submit the paper, the debtor is granted a new period of 5 days from the notification of the majority decision by email to the debtor. In the event of a new denial of the debtor, the procedure is deemed unsuccessful and the coordinator draws up a report of the failure of the procedure within 10 days of the debtor's refusal.

  Outstanding claims and waiver of the debtor

  The debtor at any time proceedings and up to the end of the vote for a restructuring agreement may resign from his pending claim for any reason. Subsequently, the EPGID will suspend the application on the electronic platform, however, the debtor's data is still kept for 3 years