Bankruptcy proceedings

A liquidating company within a bankruptcy proceeding requested that the encumbrances be removed from the Registry for a property that was still registered in its name. To this end, it submitted a judicial order with a final resolution that ordered the lifting of all encumbrances prior to the bankruptcy and those arising from it, including the mortgage. However, the registrar suspended

the cancellation. The problem was not that there was a lack of a judge's order. What was missing was that the document explained whether the mortgage creditors were aware of the liquidation plan and the measures proposed to collect their credits. It also did not indicate that the legal guarantees delete the mortgage , it should have been reflected that the rights of its holder had been taken into account.

The bankruptcy administrator appealed. He argued that the decision belonged to the judge of the bankruptcy and that the registrar could not review what he had resolved. He also maintained that there was no credit recognized with special privilege , that is, with that specific protection. But the documents supporting this last assertion were presented for the first time with the appeal, so they could not be assessed to resolve it.

The DGSJFP explains that it is necessary to distinguish two things . The registrar cannot decide again on the merits of a judicial resolution, but can verify that the document allows to cancel the registered rights cancel the registered rights Since the resolution only ordered

to lift the burdens in a general manner, without recording those guarantees, the General Directorate confirmed the suspension. The main idea is that, to delete a mortgage delete a mortgage of the Registry in these circumstances, a generic order is not enough; the judicial document must also include the protection given to the affected creditors.