Fees in Insolvency Proceedings in Spain: Administrator Scale and Advisory Arrangements

Companies and self-employed individuals facing insolvency or pre-insolvency situations often ask a legitimate question: how much will the concurso de acreedores (insolvency proceeding), the segunda oportunidad (second-chance procedure) or preliminary advisory work cost? The answer is complex because fees have two components: a regulated element set by scale (the remuneration of the court-appointed insolvency administrator) and a freely agreed element (the fees of counsel advising the debtor or creditors). This guide clarifies both dimensions: the administrator's scale fee set by Real Decreto 1860/2004 and the fee arrangements of counsel advising the debtor or creditors.

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How we work

From first contact to case completion

  1. Financial and legal diagnosis

    We analyse the true state of the liabilities (financial debt, trade creditors, AEAT, TGSS), the viability of the business, the available assets and the time remaining before definitive insolvency. We identify whether alternatives to formal proceedings exist.

  2. Exploration of pre-insolvency alternatives

    Formal insolvency proceedings should be a last resort. Before reaching that stage, we evaluate: bilateral renegotiation with principal creditors, acuerdo extrajudicial de pagos (out-of-court payment arrangement, AEP), payment deferrals with AEAT and TGSS, disposal of non-core assets, and new investor participation or rescue financing.

  3. Advice throughout the insolvency proceedings

    If proceedings are inevitable or represent the best option, we advise the debtor throughout: filing the voluntary insolvency application, communication with the insolvency administrator, negotiation of the creditors' arrangement or orderly liquidation, and protection of the debtor's interests at each stage.

  4. Second-chance procedure for natural persons

    For insolvent self-employed individuals and natural persons, we manage the segunda oportunidad (second-chance procedure): exoneración del pasivo insatisfecho (BEPI, discharge of unsatisfied liabilities) following liquidation of available assets. This procedure allows individuals to discharge debts they cannot pay and make a fresh start.

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The problem

Companies and self-employed individuals facing insolvency or pre-insolvency situations often ask a legitimate question: how much will the concurso de acreedores (insolvency proceeding), the segunda oportunidad (second-chance procedure) or preliminary advisory work cost? The answer is complex because fees have two components: a regulated element set by scale (the remuneration of the court-appointed insolvency administrator) and a freely agreed element (the fees of counsel advising the debtor or creditors). This guide clarifies both dimensions: the administrator's scale fee set by Real Decreto 1860/2004 and the fee arrangements of counsel advising the debtor or creditors.

Our solution

BMC's restructuring and insolvency team advises companies and self-employed individuals in financial distress: from early-stage insolvency detection through advice on the formal insolvency proceedings, negotiation with financial creditors and exploration of pre-insolvency alternatives. We work with insolvency counsel Raúl Herrera (Of Counsel) for cases requiring specialist procedural representation. The first consultation is confidential and without commitment. See our [fee arrangements](/es/honorarios) for further information.

Process

How we do it

1

Financial and legal diagnosis

We analyse the true state of the liabilities (financial debt, trade creditors, AEAT, TGSS), the viability of the business, the available assets and the time remaining before definitive insolvency. We identify whether alternatives to formal proceedings exist.

2

Exploration of pre-insolvency alternatives

Formal insolvency proceedings should be a last resort. Before reaching that stage, we evaluate: bilateral renegotiation with principal creditors, acuerdo extrajudicial de pagos (out-of-court payment arrangement, AEP), payment deferrals with AEAT and TGSS, disposal of non-core assets, and new investor participation or rescue financing.

3

Advice throughout the insolvency proceedings

If proceedings are inevitable or represent the best option, we advise the debtor throughout: filing the voluntary insolvency application, communication with the insolvency administrator, negotiation of the creditors' arrangement or orderly liquidation, and protection of the debtor's interests at each stage.

4

Second-chance procedure for natural persons

For insolvent self-employed individuals and natural persons, we manage the segunda oportunidad (second-chance procedure): exoneración del pasivo insatisfecho (BEPI, discharge of unsatisfied liabilities) following liquidation of available assets. This procedure allows individuals to discharge debts they cannot pay and make a fresh start.

Confidential
First consultation with no commitment
Regulated
Insolvency administrator scale fee (RD 1860/2004)
2nd chance
Debt discharge for natural persons

How are fees structured in insolvency proceedings in Spain?

Fees in a concurso de acreedores (insolvency proceeding) in Spain have two distinct components:

  1. Scale fee of the court-appointed insolvency administrator (administrador concursal), governed by Real Decreto 1860/2004. Calculated by applying declining percentages to the debtor’s assets. Approved by the court and not negotiable by the debtor.
  2. Fees of the debtor’s or creditors’ counsel, freely agreed on a case-by-case basis according to the complexity of the proceedings.

See our fee arrangements for further information on our general pricing process. The first consultation in insolvency situations is confidential and free of charge.

Variables that determine the advisory budget

Insolvency proceedings are complex and fees vary substantially across several factors.

Size of the asset base and liabilities. The larger the assets and the debt, the more complex the proceedings, the longer they run and the more work is required to defend the debtor’s interests. The insolvency administrator’s scale fee also increases with the asset base.

Number and type of creditors. Proceedings with a single principal financial creditor are very different from those with dozens of ordinary creditors, several secured creditors and arrears with AEAT and Social Security (Seguridad Social). Negotiating an arrangement in the latter case is significantly more complex.

Objective of the proceedings. Advisory work aimed at a creditors’ arrangement (continuing the business with a haircut and repayment schedule) requires a very different strategy from that of an orderly liquidation. Successful arrangements tend to be more expensive to achieve but preserve the value of the business.

Prior situation: voluntary vs necessary proceedings. Voluntary insolvency, filed by the debtor before creditors demand it, offers more room to manoeuvre and better conditions for negotiation. Necessary insolvency, initiated by creditors, puts the debtor in a reactive position requiring more defensive work.

Type of procedure. Ordinary insolvency, concurso express, out-of-court payment arrangement, second-chance procedure: each has a different work profile that is reflected in the budget.

Fee transparency at BMC

At BMC the first consultation in insolvency situations is confidential and free of charge. At that meeting we analyse the real situation, identify the available options (from out-of-court renegotiation to the second-chance procedure) and present a written proposal before any work begins. We do not initiate insolvency proceedings without the client understanding the total estimated cost, including the insolvency administrator’s scale fee that will be paid from the estate.

Discuss your situation in confidence →

FAQ

Frequently asked questions

The remuneration of the insolvency administrator (administrador concursal) is governed by Real Decreto 1860/2004. It is calculated by applying declining percentages to the debtor's assets, subject to regulatory minima and maxima. The court approves it and it is not negotiable by the debtor. At the initial consultation we provide an estimate based on the debtor's assets.
The fees of counsel representing the debtor in the insolvency proceedings (distinct from the insolvency administrator) are freely agreed on a case-by-case basis. The budget reflects the complexity of the proceedings: number of creditors, total assets and liabilities, objective (arrangement or liquidation), and whether the proceedings are voluntary or necessary. See our fee arrangements.
The second-chance procedure (exoneración del pasivo insatisfecho, BEPI) is budgeted following a preliminary analysis of the level of debt, the number of creditors and whether assets need to be liquidated. Cases involving mortgage debt on a primary residence carry additional complexity. The first consultation is free of charge; at that meeting we assess the situation and send a written proposal.
The concurso express is the abbreviated procedure for companies or individuals whose assets are insufficient to cover the costs of the proceedings. The court may declare it with simultaneous opening of the liquidation phase. The insolvency administrator's remuneration is reduced to the minimum scale, and advice to the debtor is calibrated to the reduced complexity of the procedure.
The acuerdo extrajudicial de pagos (AEP, out-of-court payment arrangement) is a pre-insolvency mechanism that allows the debtor to negotiate an agreement with creditors before a mediador concursal (insolvency mediator), without entering formal insolvency proceedings. For non-business natural persons, the procedure is free of charge through a notary. For companies, the insolvency mediator's fees are also regulated by scale. Fees for the debtor's counsel are budgeted on a case-by-case basis according to the number of creditors and the complexity of the liabilities.
Before reaching the insolvency stage, financial and legal advice to explore alternatives (debt renegotiation, AEAT and TGSS payment deferrals, investor search, bank refinancing) is priced according to the work required: number of creditors to be negotiated with, complexity of the financial structure and timelines. At the initial consultation we assess the situation and send a detailed proposal.
Claims against the insolvency estate (créditos contra la masa, costs of the proceedings) take priority over ordinary insolvency claims. Fees of the debtor's counsel may be recognised as a claim against the estate, meaning they are paid before ordinary creditors from the debtor's assets. However, this requires sufficient assets to exist. In very small insolvency proceedings with insufficient assets, the debtor's counsel typically charges at the outset of the procedure or in advance.
The insolvency administrator (administrador concursal) is an independent professional (lawyer, economist or auditor) appointed by the court to manage the debtor's estate during the proceedings. Their remuneration is set by regulatory scale. The debtor's counsel (abogado del deudor) is the professional retained by the debtor to defend their interests: challenging decisions, negotiating the arrangement, and protecting key assets. The roles are distinct and not incompatible.

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Frequently asked questions

Questions about Insolvency Adviser Fees in Spain

The remuneration of the insolvency administrator (administrador concursal) is governed by Real Decreto 1860/2004. It is calculated by applying declining percentages to the debtor's assets, subject to regulatory minima and maxima. The court approves it and it is not negotiable by the debtor. At the initial consultation we provide an estimate based on the debtor's assets.
The fees of counsel representing the debtor in the insolvency proceedings (distinct from the insolvency administrator) are freely agreed on a case-by-case basis. The budget reflects the complexity of the proceedings: number of creditors, total assets and liabilities, objective (arrangement or liquidation), and whether the proceedings are voluntary or necessary. See our fee arrangements.
The second-chance procedure (exoneración del pasivo insatisfecho, BEPI) is budgeted following a preliminary analysis of the level of debt, the number of creditors and whether assets need to be liquidated. Cases involving mortgage debt on a primary residence carry additional complexity. The first consultation is free of charge; at that meeting we assess the situation and send a written proposal.
The concurso express is the abbreviated procedure for companies or individuals whose assets are insufficient to cover the costs of the proceedings. The court may declare it with simultaneous opening of the liquidation phase. The insolvency administrator's remuneration is reduced to the minimum scale, and advice to the debtor is calibrated to the reduced complexity of the procedure.
The acuerdo extrajudicial de pagos (AEP, out-of-court payment arrangement) is a pre-insolvency mechanism that allows the debtor to negotiate an agreement with creditors before a mediador concursal (insolvency mediator), without entering formal insolvency proceedings. For non-business natural persons, the procedure is free of charge through a notary. For companies, the insolvency mediator's fees are also regulated by scale. Fees for the debtor's counsel are budgeted on a case-by-case basis according to the number of creditors and the complexity of the liabilities.
Before reaching the insolvency stage, financial and legal advice to explore alternatives (debt renegotiation, AEAT and TGSS payment deferrals, investor search, bank refinancing) is priced according to the work required: number of creditors to be negotiated with, complexity of the financial structure and timelines. At the initial consultation we assess the situation and send a detailed proposal.
Claims against the insolvency estate (créditos contra la masa, costs of the proceedings) take priority over ordinary insolvency claims. Fees of the debtor's counsel may be recognised as a claim against the estate, meaning they are paid before ordinary creditors from the debtor's assets. However, this requires sufficient assets to exist. In very small insolvency proceedings with insufficient assets, the debtor's counsel typically charges at the outset of the procedure or in advance.
The insolvency administrator (administrador concursal) is an independent professional (lawyer, economist or auditor) appointed by the court to manage the debtor's estate during the proceedings. Their remuneration is set by regulatory scale. The debtor's counsel (abogado del deudor) is the professional retained by the debtor to defend their interests: challenging decisions, negotiating the arrangement, and protecting key assets. The roles are distinct and not incompatible.
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