Second Chance Law in Zaragoza: How to start over

What is the Second Chance Law?

The Second Chance Law is a law that allows insolvent individuals and self-employed workers to free themselves from their debts and start over. This law, in force since 2015, offers a legal path to leave financial difficulties behind and regain control of your financial life.

Who can benefit from the Second Chance Law?

1. Individuals and self-employed workers who are in a situation of insolvency, that is, who cannot pay their debts on a regular basis, can benefit from the Second Chance Law. Additionally, they must meet the following requirements:
2. Not having been convicted of crimes against property, against the socioeconomic order, against the Public Treasury or against Social Security in the last 10 years.
3. Not having been declared guilty of punishable insolvency in the last 5 years.
4. Have attempted, in good faith, to meet your payment obligations.

How is the Second Chance Law applied?

The Second Chance Law is applied through a judicial process that is divided into two phases:

Consecutive bankruptcy: In this phase, the debtor files a bankruptcy procedure so that the judge determines their insolvency situation.

Second chance procedure: In this phase, the judge can exonerate the debtor from his debts, except for those that cannot be exonerated, such as debts with the Treasury and Social Security.

Second Chance Law Application Statistics

According to data from the General Council of the Judiciary, in 2022, 443 Second Chance Law procedures were initiated in Zaragoza, which is 47% more than in 2021.

Example of application of the Second Chance Law

María is an entrepreneur who created her own company 10 years ago. The company started well, but the economic crisis forced it to close 5 years ago. Since then, María has been struggling to pay her debts, but has not been able to do so.

María decided to take advantage of the Second Chance Law. After a judicial process, the judge exonerated him of his debts, except for those he had with the Treasury and Social Security.

Contact Cremades&Calvo-Sotelo for advice on the Second Chance Law

If you are insolvent and think you can benefit from the Second Chance Law, contact the Cremades&Calvo-Sotelo law firm in Zaragoza. Our lawyers will advise you on the procedure and help you start it.