From the Spanish Association of People Affected by Debt, a non-profit association whose purpose is inform and advise all those people who are in debt situation, point out the possibility for many to avail themselves of the Second Chance Law to try to give a solution to your problems.

From its website,, the most useful information on this legal formula is offered to overcome a bad economic situation that has been caused by excessive indebtedness. A method to re-create a business without neglecting creditors’ rights to collection at any time.

What is the Second Chance Law?

When in Spain an employer, an entrepreneur or a self-employed worker finds himself in a situation of non-payment to creditors and shows that he cannot cope with the settlements presented by them, he can go to the second chance mechanisms. With this Law you can, if the conditions are favorable, save the bad moment of crisis that you are going through, a fairly common situation in view of the economic debacle suffered in this country in recent years.

With the existing laws in Spain (Bankruptcy Law and Second Chance Law), which are thought from ethical principles, it is also tried take forward the collection of creditors. Therefore, these laws are fulfilling a social function, on the one hand, by relieving a businessman and legal work, by complying with financial commitments with those who are owed.

Specific, The Second Chance Law consists of offering a legal mechanism aimed at individuals and self-employed professionals that have been sunk by an indebtedness impossible to stop, being unable to liquidate due to circumstances beyond their control.

Requirements to qualify for the Second Chance Law

The conditions that will validate the possibility of anyone accessing this solution remain regulated in Law 25/2015 of July 28, regarding the second chance law, reduction of financial burden and other social measures. A law that became operational on July 30, 2015.

These are the conditions for the debtor to be able to exclude the principle of universal patrimonial responsibility of article 1911 of the Civil Code, which warns; The debtor is responsible for the fulfillment of the obligations with all his assets, present and future.

Who can benefit from this law?

This law is open and available to all those individuals, freelancers and individuals who cannot pay the debts incurred in the exercise of their professional work. The procedure is very similar in both cases (individuals and self-employed), with the difference that individuals are obliged to initiate the process in front of a notary and the self-employed will carry out the beginning at the corresponding Chamber of Commerce or at the Registry. Trade.

If it is a company, this procedure changes its name and is called bankruptcy.


This law will take into account the situation of credit history of the debtor that must be declared insolvent. The aim is to find a solution for those who have proven to be good payers during their professional careers, but who, at the present time, due to external conditions, are going through a bad financial moment.

Will run for your part show you deserve this second chance, proving that the insolvency situation through which it passes has not occurred through intent or gross negligence. It is important that you have not lied in any way about the true situation of inability to pay and, above all, that you have not hidden any type of important documentation to carry out the process.

You will also need to prove that, In the last 10 years, he has not been convicted of committing any patrimonial, socioeconomic or documentary falsification crime, and that you have made demonstrable efforts to reach an out-of-court settlement to make payments with your creditors.

No less important will be the demonstration of having satisfied the credits against the mass and the privileged, that is, those that have been created after the declaration of the contest, such as the expenses of the lawyer and the notary. As for the privileged, it refers to those contracted with banks (mortgages), Tax Agency and Social Security.

Finally, you must justify that you have not benefited from any exemption in the last 10 years, that he has not rejected a job offer according to his capacity in the last 4 years and that he accepts its inclusion in the Public Bankruptcy Registry, of interest to creditors who intend to find out his current situation.

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