La Second Chance Law It is a regulation that allows individuals and the self-employed to request the cancellation of debts if they are over-indebted and unable to make their payments.
Do you have debts? Do you know the Second Chance Law?
La Second Chance Law It has been applied in Spain since 2015 and establishes a procedure so that debtors can negotiate with their creditors and, ultimately, request the cancellation of debts. The objective of the law is to offer a way out for people who find themselves in a very difficult economic situation and who have no possibility of paying their debts.
Requirements to benefit from the Second Chance Law
These are the Requirements to benefit from the Second Chance Law:
- Be a natural person, that is, individuals or self-employed. Companies or other entities cannot qualify.
- Be in a situation of current or imminent insolvency and demonstrate that you cannot pay your debts.
- Having attempted to reach an out-of-court agreement with creditors to pay the debt, by presenting a payment plan.
- Not having been convicted of economic crimes, such as fraud or swindling.
- That the total debt does not exceed 5 million euros.
- Once the requirements are met, the debtor must present the application for acceptance of the Second Chance Law before a judge, who will be in charge of approving it.
If the cancellation of the debts is approved, the debtor must follow a payment plan and comply with certain obligations for a certain period, which can be up to five years.
What does debt cancellation entail?
Achieve the requirements to benefit from the Second Law Opportunity offers individuals and self-employed people to request the cancellation of debts:
- The main benefit is the ability to cancel debts that cannot be paid, allowing the debtor to start over without the financial burden of old debts.
- In the event that the judge does not approve the cancellation of all debts, it allows you to establish a customized payment plan that allows you to pay the debts progressively and adapted to your current economic situation.
- If you have guarantors, you can release them from the responsibility of paying the debts.
- Once the established payment period has expired, it allows the exoneration of debts that could not be paid.
- La Second Chance Law establishes measures to protect the debtor's habitual residence, preventing foreclosure in the event that the debtor cannot pay the mortgage.
If you want to cancel your debts and start over without the financial burden of old debts, contact our law firm in Murcia capital. At ACC Legal Abogados we have an expert team of lawyers specializing in the Second Chance Law.
