Both individuals and self-employed persons can benefit from the Second Chance Law usa number list which consists of renegotiating or even totally or partially eliminating their debts when it is not possible to pay them. Therefore, the figure of lawyers specializing in the Second Chance Law is essential to obtain this benefit since the debts will not be eliminated from one day to the next, but rather a series of requirements must be met and a certain procedure initiated.
And companies cannot apply for bankruptcy? Companies have the option of bankruptcy proceedings.
The Second Chance is an administrative process, as indicated by Batlle Ferrer Abogados , it is a way of saving the bad situation of someone who cannot face their debts and also, saving, as far as possible, the collection of debts from creditors.
In order for someone to be able to apply the benefit of the exemption from unsatisfied liabilities, the necessary requirements and budgets established in articles 486 and following of the Revised Text of the Law must be met. LawBankruptcy .
We want to make it clear that this is not a mechanism to "get rid" of debts, but rather it is an aid to those who have proven to be good payers but, due to an economic crisis, can no longer meet their payments.
Requirements
The debtor's good faith , that the insolvency situation has not been caused by fraud or gross negligence; that he has not lied about his financial situation and that he has attempted to reach an out-of-court agreement with his creditors.
Demonstrate that you do not have assets to pay your debts or that they have already been liquidated.
The total debt obligation cannot exceed 5 million euros.
Not having benefited from this law in the last 10 years.
That has satisfied the credits against the mass and the privileged .
Procedure of the Second Chance Law
We must bear in mind that the Second Chance Law gives the possibility of starting from scratch. Of course, the debtor has to invest all his assets in paying his debts. When the debtor's assets have been liquidated, he may present an out-of-court payment agreement .
If an agreement cannot be reached between the creditor and the debtor (which is the most common), the judicial phase begins, during which the judge may exonerate 100% of the debt.
Not all debts are eliminated, those contracted with the Treasury and Social Security and any new debts that have been generated are excluded.
The debts will be effectively discharged after 5 years. During this period, they will not have to be paid, but this is the period stipulated for the case to be reviewed, if the creditors request it.