The Insolvency Law has the necessary mechanisms to address such situations whatever the objective pursued, that is, to ensure the continuity of the activity or to proceed to the liquidation and orderly closing of the company and, always and in any case;saving the personal liability of the administrator of the company to, with this, guarantee the indemnity of his present and future personal assets against the debts of the business activity (presumption of guilt contained in art. 444 1º Texto Refundido de la Ley Concursal, hereinafter, TRLC).
The Insolvency Law provides for different mechanisms depending on the objective pursued and the situation of the debtor. Thus, it is possible to resort to the so-called “Communication of the opening of negotiations with the creditors”, generally known as preconcurso and previously regulated in article 5 bis of the Insolvency Law or, directly, to request the declaration of insolvency, it being essential that one or the other mechanism be implemented within a maximum period of two months from the time the debtor knew, or should have known, its state of insolvency (articles 584 and 5 of the Insolvency Law).