The Commercial Court No. 2 of Granada pardoned a debt of 257,000 euros to a worker who He lost his job in 2020 due to pandemicwhich prevented him from meeting the payments available to him at that time and led him to request new loans which he couldn’t face either.
The car, recovered by Eferecognizes this neighbor of Granada the benefit of exemption of your debt pursuant to the Second chance lawconcluding that it is a debtor “in good faith” and meets the requirements required by the regulations in force for this purpose.
From the Debt Assistance Associationwho took care of his case, explains that with the appearance of covid, this person lost his job and “could not recover his income”.
Even though he tried refinance debt With banks offering more affordable fees, the person concerned requested several loans to pay what they already had, but the situation did not improve: they only managed to obtain a higher amount to pay while income remained the same.
Seeing no way out, he turned to the Debt Assistance Association, a nonprofit entity specializing in debt relief procedures. insolvencywho recommended him to take advantage of the Second chance law.
The association’s lawyer, Pepe Domínguez, reports that “in such a situation, the despair leads to requesting new credits to pay for old ones, but this is nothing other than a patch“. “The banks, knowing this situation, grant it with exorbitant interest,” he warns.
The procedure consisted of informing the court of the situation of the person concerned with a pre-bankruptcy which paralyzes the current embargoes until the debtor’s situation is documented and it is proven that he has no assets to liquidate.
After that, the court hearing the case verified the situation of the debtor (income, expenses, property, debts, creditors), that he complied with the insolvency requirements and had not previously committed any crime of a socio-economic nature, left him for free exempting from payment of 257,000 euros.
What are the requirements?
THE requirements required to be eligible to become a beneficiary of the Second chance law are as follows:
- Be a natural person.
- Have more than one creditor.
- Be insolvent.
- Have no criminal record for socio-economic offenses with a sentence of more than three years.
- Be a debtor in good faith.
- Collaborate with the court.
