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Bufete de abogados penalistas Alonso Sala
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Bankruptcy Fraud Defense

Advanced criminal defense in bankruptcy fraud, asset concealment, and corporate crises.

Economic Criminal Defense in Business Crises

Defense in Execution Frustration Crimes (Asset Stripping)

The crime of asset stripping, technically execution frustration, punishes hiding assets to prevent creditors from collecting. It's a frequent economic crime in business crises.

Our intervention focuses on proving the economic reality of operations. Often, accusatory 'asset hiding' is legitimate restructuring, payments in kind, or necessary sales to save activity. We use economic experts to trace funds and prove no intent to defraud.

Punishable Insolvency Crime and Bankruptcy

Bankruptcy spikes penal risk. If Administrator or Prosecutor finds serious accounting irregularities, unjustified asset exits, or double accounting, they may qualify bankruptcy as 'guilty' and move to criminal court.

We defend de facto and de jure administrators against charges of fraudulently aggravating insolvency. We analyze forensic accounting to justify every move, proving bankruptcy was due to market causes, not deliberate company looting.

Director Protection and Personal Assets

Punishable insolvency conviction brings prison (1-4 years, up to 6 aggravated) and personal civil liability: the administrator may pay company debt from their pocket. Our priority is shielding the client's personal assets, proving due diligence and separating corporate from personal liability.

"In insolvency situations, the line between poor business management and crime is thin. Our job is to documentarily prove that there was no intent to harm creditors, but legitimate attempts to save the company."

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Asset Stripping

Defense against accusations of hiding assets to prevent debt collection (creditors, Tax Agency, Social Security).

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Bankruptcy Insolvency

Defense in qualification pieces or criminal sections derived from irregular bankruptcy proceedings.

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Why Alonso Sala in Business Crises?

We understand the dual criminal and commercial dimension of bankruptcy. We coordinate our defense with your bankruptcy administration to ensure the best possible outcome for executives.

  • checkExperts in socio-economic crimes and director liability.
  • checkPreventive defense before filing for bankruptcy.
  • checkProtection of personal assets against liability derivations.
  • checkNegotiation with institutional creditors (Banks, Tax Agency).
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FAQs - Insolvency

Difference between commercial and punishable insolvency?expand_more
Commercial insolvency (bankruptcy) seeks to order debt payment. Punishable insolvency is a crime (prison) that punishes causing or aggravating that insolvency fraudulently to harm creditors.
Is it a crime to sell assets before bankruptcy?expand_more
If done to hide them from creditors (asset stripping) or at a vile price, yes. If sold at market price to obtain liquidity and pay real debts, it is lawful.
What is asset stripping (alzamiento de bienes)?expand_more
Hiding or 'disappearing' assets (putting them in third party names, donating, simulating sales) so creditors find nothing to seize.
Can I go to jail for debts?expand_more
Not for unpaid debts (debtors' prison is prohibited). But yes for performing fraudulent maneuvers to avoid paying them while having the capacity to do so (punishable insolvency).
What is guilty bankruptcy?expand_more
When the Commercial Judge declares the bankruptcy was caused or aggravated by willful misconduct or gross negligence of the administrator. It usually leads to personal civil liability and disqualification.
Is the administrator liable with their assets?expand_more
Yes, if declared guilty bankruptcy or convicted of punishable insolvency. They may have to pay the bankruptcy deficit (what remains unpaid to creditors) from their pocket.
Do these crimes expire?expand_more
Basic type in 5 years. Aggravated (damage >€600,000) in 10 years. Time counts from when insolvency is consummated or discovered.
What if I only pay 'some' creditors?expand_more
Paying a preferential creditor (e.g. Tax Agency) is not a crime. But paying a friend or partner before others to empty the cash box can be a crime of illicit favoritism of creditors.
Is it a crime not to keep accounting?expand_more
Yes. Not keeping accounting, keeping double accounting, or destroying it is a punishable insolvency crime if in an economic crisis situation.
What is piercing the corporate veil?expand_more
When the judge ignores the corporate structure to go against the partners' personal assets, if they see the company was a mere screen to defraud.
Does voluntary bankruptcy help?expand_more
Yes, it shows diligence. If filed on time (within 2 months of insolvency), it protects the administrator from guilty qualification.
What if I divorce and separate assets before bankruptcy?expand_more
If done in fraud of creditors (to save the house), the judge can annul the separation of assets and consider it asset stripping.
What is Asset Shielding?expand_more
Protecting assets lawfully BEFORE having debts is legal. Doing it WHEN debts are already owed to avoid paying is a crime. Timing is key.
If I return the assets, am I safe?expand_more
Repairing damage by returning assets reduces penalty (mitigating factor), but does not erase the crime if concealment was already consummated.
Is the figurehead (testaferro) liable?expand_more
Yes. Whoever lends their name knowing it is to defraud is a necessary cooperator. The real administrator (de facto) responds as author.
Are donations to children asset stripping?expand_more
It is the crudest form. Donating apartments to children just when the bank claims the debt is almost automatic crime and the donation is annulled.
What is execution frustration?expand_more
The current technical name for asset stripping. Preventing a judicial payment order from being executed by hiding assets.
What is the penalty for punishable insolvency?expand_more
1 to 4 years in prison. If damage is very high, up to 6 years.
Can the Bankruptcy Administrator report me?expand_more
Yes, in fact, they have an obligation to inform the Prosecutor if they detect signs of crime in accounting.
What happens with administrator credits?expand_more
Loans the administrator made to the company in crisis are specially monitored. If collected before other creditors, may be accused of illicit favoritism. They are subordinated credits paid last.

Need Immediate and Expert Legal Assistance?

The judicial system is complex and can be relentless. Do not face it alone. We have the experience, technical knowledge, and human resources necessary to fight for you. Contact us today to schedule a confidential consultation and start building your defense.

Contact Alonso Sala