Pre-insolvency proceedings in Spain are a legal mechanism regulated by the Consolidated Text of the Insolvency Act, which allows a company to anticipate a situation of insolvency and try to reach an agreement with its creditors before insolvency proceedings are formally declared. Any company, whether a natural or legal person, which is likely to become insolvent, is imminently insolvent, or is currently insolvent, may also avail itself of this mechanism. Its main objective is therefore to avoid liquidation and allow for the restructuring of the debt or the company, providing scope for negotiation with creditors without the stigma or restrictions of insolvency proceedings. Parliament approved the reform of the Insolvency Law in order to transpose the Restructuring and Insolvency Directive into Spanish law, thereby generating profound changes to the pre-insolvency regime, new developments in the areas of agreements, liquidation and classification, a special regime for micro-enterprises, and an improved regime for the exoneration of unsatisfied liabilities.