Get rid of your debts, whether you are an individual, self-employed or an entrepreneur.
The Royal Decree-Act 1/2015 will allow you to start over.
Dated 28th February 2015 the Royal Decree-Act 1/2015, of 27th February, on second-chance mechanism, urgent measures to reduce financial burden and other social order measures was passed. This Act allows individuals and self- over-indebted to renegotiate their debts with their creditors, in accordance with their payment availability. In case of a no agreement, they can opt for a bankruptcy proceeding to sell off (if applicable) and force the creditors to accept the payment in installmentsas well as canceling the part of the debt that they cannot pay, it could be even the entire debt depending on the economic situation.
This FAQ section seeks to help you clarify the beginning of a SECOND-CHANCE procedure:
1. Which are the main requirements to be eligible for this procedure?
It is required that you are in a situation of over-indebtedness (meaning “unable to your debts”), not to have been convicted of any economic crime in the 5 years previous to the beginning of the proceedings, and that the total amount of debt does not exceed 5 million Euros.
2. Does it affect all types of debt, including the ones with banks and the Spanish public administration?
Only the debts with the Spanish public administration (Tax Agency or Social Security) are excluded expressly. Any of the debts, such as debts with individuals and companies, including banks, are open to renegotiation and/or cancellatio.
3. How long does this procedure last?
There are two phases. The first one, lasting an average of 6 months, is carried out out-of-court at the Notary, where a payment schedule is proposed to the creditors. In case of no agreement, the judicial phase opens by a bankruptcy proceeding. The decision is temporary for 5 years and becomes final if no breach of it happens.
4. Which expenses am I going to pay during the procedure?
There are some professionals who participate in this procedure: lawyer, court agent, mediator and the notary. In order to request a quote, please contact us: +34 954 082 800 or firstname.lastname@example.org.
5. Does it also affect the debts incurred as a result of my professional activity?
It is included as well as debts that affect personally the debtor and that are a result of its professional activity. For instance: self-employee debts, a guarantor or as a joint debtor of a company.