SMEs filing for bankruptcy in Spain: The best of luck!

The aim of this work is to analyze the factors that help companies avoid liquidation following spirit Spanish insolvency law. This focuses on phase starting when file for bankruptcy and ending with completion common phase. We apply agency theory explain how administrators court characteristics influence outcome process (liquidation or reorganization). unique accounting data from 2,627 filed during period 2008–2014. findings reveal significant roles played by trustee, Big 4 administrators, higher remunerations, along type in charge. Processes are more likely result reorganization if they handled specialized courts, managed 4, administrator has longer experience filing receives a remuneration. These have important implications all agents involved. It necessary rationalize process, foment better training provide courts funds, create courts. principal contribution article examine role their process. JEL CLASSIFICATION C35; D21; D22; G33; G38