Those people who are drowning in debt have the option of getting rid of all of them and being able to walk their personal finances again. This is possible to do thanks to the Second Chance Law, a mechanism that allows you to skip debts with creditors without losing the right to collect.
It should be noted that this option is suitable for both individuals and the self-employed or small businesses that have found themselves in this situation. This law, which was published in 2015 and is still in force today, opens the possibility of exonerating and resolving debt situations outside the judicial sphere.
With the recent reform of the bankruptcy law, different updates have been incorporated to adapt our regulations to the European Directive 2019/1023 and with this, some deficiencies are solved. For example, in relation to the maximum terms to obtain debt forgiveness, the reduction of the costs of the process or the possibility of keeping the habitual residence. One of the latest beneficiaries has been a 63-year-old self-employed man with debts of up to 5.2 million euros with various creditors.
Bankrupt pharmacist gets out of debt
The sentence has been handed down by a court in Valladolid, which has forgiven a debt of 5.2 million to a local pharmacist. This is one of the largest extinctions of debt to a natural person granted under the Second Chance Law. “Despite the fact that he was completely ruined, we have been able to save his house and he will be able to opt for a payment plan. Once completed within the next five years, he will be able to consolidate the total exoneration of liabilities,” says the lawyer on the specialized portal of the General Council of the Spanish Lawyers.
According to the lawyer, the bankruptcy administration operated with malpractice and separated the debts. In addition, they acknowledged a debt of 800,000 euros and one of the creditors filed a lawsuit against the pharmacy he owned in 2014. Many documents were missing, an exhaustive valuation of the pharmacy had not been carried out and he was deregistered in the RETA to the affected owner, for which reason the debts of the autonomous quotas accumulated.
The Mercantile Court no. In this way, the provisional exoneration of the payment of ordinary and subordinated unsatisfied liability credits has been granted. However, he will have to face the credits against the mass, which will amount to 18,000 euros.
Let us remember that for self-employed workers to benefit from the Second Chance Law, they will have to meet a series of requirements such as not having committed crimes against property, the socioeconomic order, false documents, against the Public Treasury, Security Social or against workers. Likewise, they cannot have caused or worsened their insolvency situation and they have not had to resort to this mechanism in the last 5 years as a third requirement.