The transfer of assets for payment and the bankruptcy of creditors. Scope of application of article 1175 of the Civil Code

Abstract

The transfer of assets for payment is a payment subrogated that, unlike dation in payment, does not in itself produce payment or the transfer of property to creditors, but rather confers irrevocable power to them to proceed with the sale of the transferred assets and apply its liquid proceeds to the payment of the credits. Article 1175 of the Civil Code contemplates a transfer of assets for extrajudicial payment (as a result of the autonomy of the will) and a transfer of assets for judicial payment, tacitly repealed by Law 22/2003, of July 9, Bankruptcy, which prohibited liquidation agreements, except those whose purpose is the transfer of productive units with assumption of debt.

The question that arises is what scope of application the extrajudicial transfer of assets has to the extent that the debtor is obliged to request bankruptcy in the event of current insolvency.