Recovering assets in Spain can be a daunting prospect at the best of times. First of all you must navigate the complexities of working a different jurisdiction with a different legal system and a different working culture. Secondly you have the added difficulty of tracing and securing an asset that the debtor may not wish to be found.
As specialists in tracing and recovering assets in Spain there are very few scenarios we have not encountered at E&G Solicitors in Spain.
We recently assisted the Trustee in Bankruptcy in relation to the realisation of an asset in Spain. The case provides a good example of the work involved in asset recovery as it relates to bankruptcy and property owned by the bankrupt in Spain.
Asset recovery in Spain where the debtor is bankrupt
So, you're a Trustee in Bankruptcy or you're owed a debt by someone who is bankrupt and you know that the debtor owns a property in Spain. You have a copy of the Bankruptcy order and a certificate of appointment but you're unsure about how to go about identifying, securing and realising the asset because you're not sure how things work in Spain. Or, perhaps you have some idea how things work when recovering assets in Spain but you don't have the expertise or language skills to do the work yourself. This is where the expert team at E&G Solicitors in Spain can step in.
We can advise you at each stage of the process, from tracing and identifying assets in Spain, to registering your interest at the Spanish property registry right through to realising the Spanish asset by securing a sale. We can assist you with every step.
Asset recovery in Spain - a recent case study
The case concerned a property located in Menorca, registered in the name of the bankrupt and mortgaged to his girlfriend. One day before the bankruptcy order was made in England, the bankrupt had given a charge to his girlfriend to secure a loan for the value of the property.
The Trustee in Bankruptcy made an application to the English court applying for authorisation to cancel the charge, which was granted. We registered the Trustee's interest on the Menorca property register and, as such, he was in a position to sell the property once the charge was removed.
Shortly after the charge was removed, the balcony at the front of the apartment collapsed. Hence, the sale of the property was delayed until the residents' association and their architect could agree upon the repairs to be carried out, builders' quotations were received, and a decision was taken as to the way forward. We monitored the situation throughout, ensuring that the residents’ association and their architect proceeded as quickly as possible.
We attended at the property and arranged for the locks to be changed. We managed the marketing of the property for sale, entering into an agreement with estate agents and monitoring their activity. The property was sold before the works were carried out and the purchaser met the cost of the repairs, although the Trustee bore the unpaid service charges, council tax and utility bills, which were substantial.
This was an example of a truly cross-border matter, as the expertise of lawyers in both Spain and England was essential in order for the asset to be realised. Without our assistance it is extremely unlikely that in these very difficult circumstances the Spanish asset would have been realised in a timely and cost effective manner.
Asset recovery in Spain - next steps
If you are a Trustee in Bankruptcy or if you are owed a debt by someone who you think may own property in Spain we can assist you. We are able to trace assets in Spain owned by the debtor and to register your interest in Spain so that the asset cannot be sold without the debt to you being discharged.
If you require assistance tracing or recovering an asset in Spain, we will be pleased to assist you. Contact us today on 020 3478 1420, by email at info@solicitorsinspain.com or by completing our contact form.
