New guarantees for the refinancing of personal debt and SME debt

The Directorate-General of Registries and the Notarial Profession (DGRN) recently clarified the legal mechanism known as the Out-of-Court Payment Agreement (acuerdo extrajudicial de pagos or AEP). The AEP is a legal tool designed to settle insolvency situations out of court, through debt refinancing. AEPs can be used by both individuals (entrepreneurs or otherwise) and companies (including non-corporation-type entities), provided that the initial estimate of their debt does not exceed 5 million euros, they have sufficient assets to pay the expenses relating to the AEP and their circumstances are not particularly complex.