Law of the second chance: the solution to the indebtedness produced by the pandemic

As a consequence of the pandemic, indebtedness has increased exponentially over the last three years because many people have had to resort to credit to continue their activities.

Individual entrepreneurs, better known as self-employed, have also been seriously affected by this circumstance, since their legal personality and that of a company are confused and, therefore, they are personally liable with all their assets for the debts contracted by the company.

In the event of insolvency, the self-employed could respond with any element of their assets, even if it was not affected by their professional activity. Faced with this problem, which has been aggravated in the last two years, the law proposes a legal remedy to mitigate the effect of the indebtedness of the self-employed: the second chance law.