Many people, driven by their entrepreneurial spirit, decide to invest in creating companies to earn a living as self-employed people. However, after the 2008 crisis in Spain, A Sevillian businessman has found his companies bankruptgenerating a debt from which he is now exempt thanks to the second chance law.
Specifically, after the bankruptcy of his three companies, a bankruptcy was carried out to close them permanently, after which the businessman had to assume responsibility for the unpaid debts. Among his obligations, some were included in Social Security and the Treasuryas stated in the Debt Assistance Association press release.
Companies have gone bankrupt
The current context in which we live is unfavorable to many self-employed workers who risk their assets to move forward in life. It is in these cases that bankruptcy law represents an alternative. so as not to burden the businessman for life after closing your business with debts, because these stories are becoming more and more frequent.
With the arrival of the real estate boom and the resulting economic recession, the companies run by the Sevillian protagonist of this story began to shake. a drop in billing, an increase in unpaid bills or even refusals from banks by providing financial assistance, among other things.
Despite all these efforts, the businessman had to liquidate the company’s assets and cease operations. This, unfortunatelyalso persecuted him personally due to being guarantor and responsible for part of the unpaid debts of companies.
Already in 2020, faced with an unsustainable situation, he decided to end this stage, which is why he contacted the lawyers of the Debt Assistance Association. assess whether it was possible to request a reduction or exemption total debt with the second chance law.
Express bankruptcy
In this case, it was viable and perhaps one of the best financial decisions of his life: “We are talking about a company that he created himself and that has taken up most of his time for many years,” says José Domínguez, lawyer for the Association, on the difficult decision of whether to file for bankruptcy for your business.
“Once they thought they had no choice but to close the business, an express bankruptcy procedure has been processedwhich essentially consists of asking the Court to dissolve the company, since it only has debts and no assets,” explains the lawyer.
Personal debts
After having definitively liquidated the company, I still had personal debts. For this reason, the Association also advised the debtor to declare himself insolvent and take advantage of the second chance law.
With this procedure, the exemption of outstanding debts would be requested in a judicial phase, proving the non-existence of assets to pay what is outstanding. In this case, he only owned 50% of a mortgaged house, which he paid religiously, and its liquidation was not carried out.
With this argument, the lawyers requested the cancellation of the entire amount pending before the courts of Seville. This was granted by the Commercial Court No. 3 of Seville after confirming that he met the legal requirements: he was truly insolvent, had not benefited from the second chance law in the last five years and had not been convicted of socio-economic crimes.
Once verified, there was no further discussion. The Judge rendered a judgment granting the EPI (Unsatisfied Liability Exemption) and paying the 34,324.74 euros. As a result, none of their creditors are left without the possibility of claiming anything from them.
