Insolvency Proceedings in Spain Continue to Rise According to the Report by the Spanish Judicial Council

Published on 17 July 2025

The largest increase compared to the previous year was again recorded in insolvency proceedings involving natural persons who are not entrepreneurs, which rose by 44%. Insolvencies involving natural persons who are entrepreneurs also rose again, however by only 4.4%, while insolvencies involving legal entities fell by 0.2%. Between January and March 2025, there were 3.7% more evictions due to non-payment of rent, while civil enforcement proceedings fell by 17.9%. Debt collection proceedings rose by 64.6% and labour law dismissal claims by 3.1% compared to the first quarter of 2024.

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In the first three months of 2025, courts recorded 37% more insolvency proceedings than in the same period of 2024. This significant increase is again attributable to the rise in personal insolvencies. The number of corporate insolvencies remained virtually unchanged.

The total number of insolvency proceedings filed in the quarter under review amounted to 18,017. Catalonia was the autonomous community with the highest number of insolvency proceedings, with 4,493 proceedings. This was followed by Madrid with 3,116, Andalusia with 2,549 and the autonomous community of Valencia with 2,129 insolvency proceedings.

On 17 August 2023, Organic Law 7/2022 of 27 July amending the Civil Procedure Act regarding the jurisdiction of commercial courts came into force. Personal insolvencies, which were previously handled by the courts of first instance, have been transferred back to the jurisdiction of the commercial courts.

In the first quarter of 2025, 1,455 insolvency proceedings were filed by legal entities, a figure very close to that of the same quarter last year. Catalonia was the region with the most insolvencies of legal entities: 423, representing 29.07% of the total number of corporate insolvencies. This was followed by Madrid with 227, Andalusia with 201 and Valencia with 199 corporate insolvencies.

The number of insolvency proceedings filed by natural persons as entrepreneurs/self-employed persons, 729, rose by 4.4% compared to the previous year. Catalonia was the autonomous community with the most insolvencies of this type, 414, accounting for 56.79% of the national total. It was followed by the Valencian Community with 64, Madrid with 50 and Castile-La Mancha with 30 insolvencies.

Personal Insolvency proceedings amounted to 15,833, thus recording an increase of 44% compared to the same quarter in 2024. Catalonia tops the list with 3,656 private insolvencies filed, accounting for 23.09% of the total. It is followed by Madrid with 2,839, Andalusia with 2,338 and Valencia with 1,866.

The number of insolvency proceedings pending before the commercial courts in the quarter under review was 14,849, representing an increase of 46.3% compared to the previous year. This is a significant increase, but well below the increase seen when comparing the first quarter of 2024 with the same period in 2023.

In the same quarter, a total of 54 insolvency proceedings reached the settlement phase (up 20%), while 823 entered the liquidation phase, 1.1% more than in the same quarter of 2024.

With regard to cases under article 169 of the Spanish Insolvency Law relating to substantial changes in collective employment conditions, 107 cases were filed, 16.3% more than in the same quarter of the previous year.

Eviction proceedings: Between 1 January and 31 March this year, a total of 7,334 evictions were carried out, a figure that represents a slight decrease of 1.2% compared to the same period in 2024. Catalonia was the autonomous community with the highest number of evictions, with 2,069, or 28.2% of the national total, followed by Andalusia with 1,125, Valencia with 794 and Madrid with 702.

For another year, seven out of ten evictions were the result of proceedings under the Urban Tenancy Law (LAU), while 1,189 (16.21%) were due to mortgage foreclosures and the remaining 501 were attributable to other causes.

Looking only at evictions resulting from proceedings under the LAU, Catalonia ranks first with 1,542, accounting for 27.32% of the national total. This is followed by Andalusia with 807, Madrid with 614 and Valencia with 591 proceedings. Catalonia leads the way in forced sales with 315, followed by Andalusia with 240 and the Valencian Community with 154 proceedings.

Foreclosures are on the rise: 6,120 foreclosures were published in the reporting quarter, an increase of 8.2% compared to the first quarter of 2024.

The highest number was recorded in Andalusia, with 1,463, 23.9% of the national total. This was followed by Catalonia with 1,226, Valencia with 762 and Madrid with 609.

In the first quarter of 2025, 41,116 dismissal lawsuits were filed, 3.1% more than in the same quarter of 2024, meaning that the upward trend has continued but slowed down. Catalonia was the autonomous community with the most claims of this type, with 7,745, 18.83% of the national total. It was followed by Madrid with 7,721, Andalusia with 6,617 and Valencia with 5,353.

Debt collection proceedings: In the first quarter of 2025, 488,518 debt collection proceedings were filed with the courts of first instance, representing a significant increase of 64.6% year-on-year. This type of procedure was most frequently used in Andalusia (97,450), Catalonia (87,684), Madrid (80,608) and Valencia (52,333).

Proceedings for unlawful occupation of dwellings: Since the third quarter of 2018, statistical information has been available on oral proceedings for unlawful occupation of dwellings in cases where the owners are private individuals, non-profit organisations or public bodies that own social housing.

In the first quarter of 2025, 592 claims were filed, 5.2% more than in the previous year. Most of the lawsuits were filed in Catalonia, namely 122, which corresponds to 20.60% of the national total. This was followed by Andalusia with 111 and Valencia with 72 proceedings initiated.