Spanish families accumulate more and more debts due to the accumulated inflation of the last months, consequence of the current economic situation. Without going any further, data from the Bank of Spain show that household debt increased by 5,700 million in the second quarter of the year, going from 712,000 million in the second quarter of 2021 to 717,000 in the same period of 2022. To this must be added the fact that the Consumer price index It has increased by 5.3% so far this year compared to 2021 according to data from the National Institute of Statistics.
Faced with this complex economic reality, there are many families who, drowned by debts and the lack of money available to make ends meet, are forced to take advantage of the Second Chance Law, an administrative process that allows individuals and freelancers to request a series of conditions to cancel their debts and overcome this complex economic situation, obtaining a second economic opportunity. This law is valid for both freelancers and individuals, so all natural persons can take advantage of it.
People covered by this law they can get to eliminate all their debts totally or partially. That is, depending on the particular situation of each applicant, he may eliminate part or all of his debt. In some cases, a payment plan is even proposed, which is another solution to pay debtors in a feasible way and compatible with life without going bankrupt.
Notably the same does not happen when the debt is publicthat is, if any of these debts is contracted with the Public Treasury or Social Security, only €10,000 can be exonerated for each of the public bodies, for a total of €20,000.
Requirements to benefit from the Second Chance Law
Once the intention with which the Second Chance Law is requested is clear, it is necessary to know which people can request this process. There are many aspects to take into account and it is important to comply with all the requirements of the Second Chance Law. Among others, the main requirements are:
- Demonstrate that you cannot pay the debts: Since the Second Chance Law is designed only to help people in a truly vulnerable economic situation, it is necessary to demonstrate the impossibility of assuming the payment of the debts that they have. To demonstrate this, the natural or self-employed person in question must be able to demonstrate that not even by liquidating their assets can they meet the demands of the debtors, that is, they totally lack the capacity to meet their debts.
- Prove that you have acted in good faith: This is undoubtedly the most complex matter of “defending” because it meets less objective criteria than the two previous requirements. However, there are certain rules that are taken into account and it is considered that the person has acted in a good way when:
- Have you tried to reach an agreement with your creditors?
- He has not committed financial crimes
- You have not voluntarily filed for bankruptcy to benefit from the law
- He has not received it in the last ten years (the law is from 2015, so those who have already received it at some point would have to wait to do it again).
In addition, the debts cannot exceed five million euros.
Alternatives to the Second Chance Law
Often, many Second Chance Law applicants they are drowning in debts that can become abusive, that is to say, that adding the installments of a credit card or a microcredit along with the rest of expenses and bills (housing, food, etc.) do not reach the end of the month. That is why a previous study is necessary, since behind many of these contracted debts hide usurious interests, which can be claimed and can reach faster and easier solutions.
When abusive debts are claimed, it is common to recover the most paid money in abusive interest, and all the assets that would otherwise be lost with the Second Chance would be preserved. That is why it is important to make an exhaustive prior analysis of all debts.
Take advantage of the Second Chance Law or claim abusive debts
Each situation is different and a customized solution must be applied, this is something that is applied in companies such as claim for me, whose experts explain that there are different solutions for the same problem: excess debt. Depending on the type of debt, the personal and family situation, and the available resources, it is necessary to follow one path or another to reach the same objective: sometimes applying claims against usury, and in others requesting the Second Chance Law. To know the exact way, it is best to carry out a free comprehensive study to help affected people.
“Many of the debts that Spaniards accumulate can be canceled for abusive and users can recover the money paid in excess. For the rest of the cases in which they have simply been drowned by current debts and cannot face them, it is better to request the Second Chance Law, in any case we always offer a free study, so that before doing anything the different solutions”, concludes Javier Moyano, COO of Reclama Por Mí.
