This mechanism has gained great popularity as a result of the pandemic and the fatal consequences of the disease indirectly in many domestic economies.
as time goes. One sees the calendar and months of quarantine, curfews and restrictions on mobility or leisure and the capacity of restaurant establishments seem to be behind us. Although it sounds a bit outdated, many entrepreneurs and freelancers don’t forget that these have been the toughest months of their professional careers. Most managed to salvage the situation thanks to measures such as ERTE or ERE, although they also There are people who didn’t suffer that fate And they had to degrade the blind and close their business permanently.
for later it was quite a blow To see how a completely unexpected and observable circumstance led them to the most complete destruction. The bills kept coming and the checking account had too much red for so little green. then played look for solution Which will allow them to end this stage of stress and discomfort.
In their search process, many people did something as simple as typing in Google: “how to get rid of my debt”. Among the results obtained, the most common was the following: second chance law, A mechanism implemented in Spain since 2015 that Allows those in bankruptcy to renegotiate their loans with a payment plan (and significantly less about 75% of the initial loan) or that they even forgive each other completely thanks to what is technically known Dissatisfied Liability Waiver Benefit (BEPI),
Irrespective of the option chosen, the objective is none other than granting applicants second chance financially Which allows their re-integration into the economic circuit and gives them the possibility to take the risk of undertaking new projects in the future. Some projects that not only result in the individual benefit of the person taking advantage of the second opportunity law, but also generate a collective benefit by creating hypothetical new jobs.
How long does it take to get rid of your debt?
Second Chance Laws Can Process Consists of two or three phases depending on the intentions of the applicant and the degree of insolvency, It is generally recommended to resort to this mechanism if debt over 20,000 euros, What is clear is regardless of the outcome The first step would be purely documentaryThe purpose of which is to provide as much detail as possible about the insolvency status of the applicant and to check whether their profile meets the pre-established legal requirements.
the second stage passes Celebration of an out-of-court payment settlement effort between debtors, creditors and bankruptcy arbitrator. In case of sealing an agreement with the payment plan, the process will be over in a period of between 4 to 7 months. This option will be interesting in cases where the applicant wants to retain some of his assets.
yes against both sides do not reach the same pointhave to do go to court, the third and definite step, looking for the forgiveness of all debts by means of a sentence. In these cases, the process takes a little longer, allowing duration of about one year, The first applicants who had already passed in 2020 and 2021, decided to start again, forgetting the debt of the pandemic on this mechanism. The Second Chance Act has now allowed these people to heave a sigh of relief.