The BOE nº127 of 7 May 2020, publishes RDL 1/2020 by which the revised text of the Bankruptcy Law is approved, which – according to its explanatory memorandum – regularises, clarifies and harmonises the regulation with the greatest possible scope without going beyond the mandate of the legislator, a bankruptcy regulation that is necessary following the reforms and counter-reforms experienced since its entry into force, which converted certain articles (e.g. Article 5 bis on the communication of negotiations with creditors, Article 64 on the effects of the declaration of insolvency on employment contracts, Article 71 bis on the special arrangements for terminating certain refinancing agreements, Article 100 on the content of the proposal for an agreement, Article 149 on the legal rules on the liquidation of assets, Article 176 bis on the special arrangements for terminating the insolvency proceedings on the grounds of insufficient assets and Article 178 bis on the benefit of exemption from unpaid liabilities) into actual sections, if not chapters in themselves.

The chronological order (declaration of insolvency, effects of the insolvency proceedings, arrangement phase, liquidation phase, reopening and rating) has been replaced by a systematic exposure criterion, consisting of three books, devoted respectively to (i) the insolvency proceedings; (ii) “pre-bankruptcy law”, an expression that includes refinancing agreements, out-of-court settlement agreements and consecutive bankruptcy proceedings; and (iii) the rules of private international law, which are subsidiary to those established by Regulation (EU) 2015/848 on insolvency proceedings, and other European Union or conventional rules governing the matter.

It is possible that the government’s intention to approve this Royal Legislative Decree under the present circumstances is to facilitate the processing of the insolvency proceedings and para-insolvency “files” that seem to be approaching at the time and place where these lines are written, by clarifying the darkest points of the already repealed Bankruptcy Law.