The good news for Insolvency Practitioners & Trustees in Bankruptcy is that Spanish property values are increasing. If a bankrupt individual or an insolvent company owns assets in Spain it is a good time to place a charge on the property and to ultimately seek recovery for the bankruptcy or insolvency in the UK.
We specialise in this area and although post Brexit there will be still provision for placing charges and for recovery in Spain it is advisable to act now under the provisions of the EU regulation 1346/2000. We have successfully registered UK bankruptcies directly at the Land Registries of Spain. Often this brings the bankrupt or any co-owner to the table to negotiate a settlement. A co-owner may be prepared to offer a sum in settlement.
If the bankrupt or the director of an insolvent company fails to engage with the proceedings we have been able to sell the property where the property is not occupied. If there is a co-owner or the property is occupied it can take some time to recover funds. However, by placing the charge the insolvency practitioner or trustee in bankruptcy has secured the asset which cannot be sold to a third party for value.
The sale of property in Spain must be by notarial deed or by court order. Although the notary does have the obligation to ensure title is clear they have no obligation to check if the vendor is subject to any bankruptcy proceedings in the UK. Therefore, without placing a charge the bankrupt can sell the property and leave the trustee chasing the funds rather than the property.
We can undertake land and company searches and provide advice on title. For initial enquiries when it appears there are Spanish assets please contact me on + 34 952 527014 or email on [email protected]