Free legal aid in the special insolvency procedure: a new opportunity for microenterprises

What does this legal reform mean?

With the entry into force of Organic Law 5/2024, of 11 November, the Legal Aid Act 1/1996 has been amended to include the special insolvency procedure within the scope of free legal aid.

Until now, legal aid was mainly granted to individuals who lacked sufficient resources. From now on, it will also be available to legal entities classified as microenterprises, provided they prove financial insufficiency.

What is considered a microenterprise?

Under the law, a microenterprise is a business that:

• Has fewer than 10 employees

• Generates limited annual revenue

This change affects a wide range of small companies and self-employed professionals operating through a corporate structure.

Requirements to obtain legal aid

To benefit from this assistance, it is essential to prove insufficient means to litigate by submitting:

1. Formal request to the local Bar Association or court.

2. Specify the services requested (some or all of those listed in Article 6 of Law 1/1996).

3. Required documentation, including:

   • Statement of income

   • List of assets

   • Monthly expenses and outstanding debts

   • Any supporting financial documentation

Legal protection throughout the entire procedure

The special procedure is regulated in Book Three of the Insolvency Law and is designed specifically for microenterprises. Free legal assistance will cover all phases of the process, ensuring full professional representation.

This measure reinforces the right to a fair defence and access to justice, even in financially vulnerable contexts.