They forgive a debt of up to 5 million euros to a 63-year-old self-employed person with the Second Chance Law


Those people who are drowning in debt have an option to get rid of all of them and be able to get your personal finances back on track. This is possible to do thanks to the Second Chance Lawa mechanism that allows you to skip debts with creditors without losing the right to collect.

It should be noted that this option is both for individuals and the self-employed self-employed or small businesses that have found themselves in this situation. This law, which It was published in 2015 and is still valid 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 it they solve some deficiencies. 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 last beneficiary has been a 63-year-old self-employed man which had 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 pardoned 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. “Even though I was completely ruined, We have been able to save your house and you will be able to opt for a payment plan. Once completed before the next five years, you will be able to consolidate the total exoneration of the liabilities”, points out the lawyer in 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 made sign a debt acknowledgment of 800,000 euros and one of the creditors filed suit against the pharmacy he owned in 2014. Many documents were missing, a thorough valuation of the pharmacy had not been done, and the affected owner was deregistered from the RETAso the debts of the self-employed quotas accumulated.

The Mercantile Court No. 1 of Valladolid has finally ruled that the affected party may get rid of that accumulation of debts due to the non-existence of sufficient assets to satisfy the creditors’ claims. Thus, it has been granted provisional exemption from payment of credits of ordinary and subordinate unsatisfied liabilities. However, you will have to stand up to the claims against the masswhich amounts to 18,000 euros.

Let us remember that for the Self-employed workers can take advantage of 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, Social Security 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.

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