The Court of First Instance and Instruction No. 1 of Arucas (Las Palmas) issued the Exemption of Unsatisfied Debts (EPI) in the case of a man with a debt of 175,000 euroswhich he could not cope with after the crisis of 2008, which affected his business, so he had to take out several accumulated loans.
As explained by the lawyers of Repara tu Deuda, who filed a complaint and obtained debt relief thanks to the second chance law, their case is as follows: “He applied for his first loans in 2005. start a business in the field of communications, consisting of the sale of mobile phones and household appliances, as well as the provision of call center services.
“Thanks to these loans, he was able to finance the commercial premises and all the equipment necessary for your activity. Subsequently, he requested several loans to finance the purchase of what would be his habitual residence and which he would have to pay years later because he could not continue to make the payments,” they indicate.
2008 crisis and business closure
“The company maintained its activity for a few years, but following the economic crisis of 2008, its turnover fell sharply and it was forced to close it. In the current state of affairs and in the face of difficulty to find a job, the debtor and his wife “They moved to Madrid to look for work.”continue the lawyers of Repara tu Deuda.
“Later, with the same intentions, they moved to the UK until 2017 when his mother fell ill and They had to return to Spain to be able to take care of her.. “In doing so, they struggled to find employment, so they applied for new loans, hoping to pay them off little by little.”
The situation was untenable and he had to stop repaying his loans.
Finally, “after having worked in various temporary jobs, the debtor and his wife found themselves unemployed again, so they found themselves having to apply for other loans to pay off the previous ones. Eventually the situation was untenable and he had to leave to pay. loans and meet the most basic and essential expenses.
Today, after applying the law of second chance, the resident of Las Palmas has been exempted from the high debt, which It amounted to 175,000 euros.
Second chance law
According to Repara tu Deuda Abogados, “Spain integrated the second chance law into its legal system in 2015. The aim was to offer a legal solution to people who cannot pay their debts despite the efforts made. They are not permanently ordered to postpone overdue payments. Born in the United States over 100 years ago, it eliminates the stigma suffered by those who have experienced apparent economic failure. »
This legislation allows individuals and self-employed workers to be exempt from debts upon meeting a series of specific requirements. Generally speaking, it is sufficient that the bankrupt has not been convicted of socio-economic crimes in the last ten years, that he is in a state of current or imminent insolvency and that he acts at any time in good faith, providing the required documents.
