Segunda Oportunidad
Writing off the debts you can no longer pay
Spanish insolvency law allows an individual or a self-employed worker who cannot meet their debts to be released from them. It is called discharge of unsatisfied debts (exoneración del pasivo insatisfecho), and since the reform introduced by Act 16/2022, of 5 September —which brought Directive (EU) 2019/1023 into Spanish law— the procedure is more accessible than before.
It is not an automatic formality, nor does it apply to every situation of insolvency. Below you will find a six-question questionnaire to gauge whether your case fits before booking an appointment.
The two routes
The law provides two routes, and choosing the right one is the first decision in the file.
With liquidation
Whatever assets you have are realised, distributed among the creditors, and the rest of the debt is discharged. It is the usual route where there are no significant assets to keep.
With a repayment plan
You keep assets —including, depending on the case, your home— and in return you meet a repayment plan over a set period. On completing it, the rest is discharged.
In both cases the law requires the debtor to be acting in good faith: not having concealed assets or information, and not falling within the grounds for exclusion the statute itself lists. It is the requirement that most often prevents discharge, and it is the first thing we check.
What is written off and what is not
It is worth knowing before starting the procedure.
Normally yes
- Bank loans and credit.
- Revolving credit cards and payday loans.
- Overdrafts and debts with finance companies.
- Debts to suppliers, if you are self-employed.
- Loans from private individuals.
No
- Maintenance debts.
- Civil liability arising from a criminal offence.
- Fines and penalties.
- Part of what is owed to the tax authority and to Social Security: the law only allows those debts to be discharged up to a limit, and the rest survives.
What you can expect from us
A viability assessment before anything else
We gather the documentation —debts, income, assets and employment history— and tell you whether the case has prospects and by which route. If it does not, we say so just as clearly: it saves you the cost of proceedings with no prospect of success.
Fees in writing
Fees are assessed case by case. Before the file is opened you receive an engagement letter setting out its scope and the corresponding fees.
Realistic timescales
These are court proceedings: their duration is measured in months and depends on the court with jurisdiction. It is not possible to give an exact timescale at the outset.
A professional tailored to you
The file is handled by the best professional in our team for your case, a lawyer registered with the ICAV.
Viability questionnaire
Does your case fit?
Six questions, under a minute. At the end you will get an indication and, if you wish, you can leave us a phone number so that we can contact you.
Question 1 of 6
How much do your debts come to in total?
An approximate figure, adding everything up: loans, cards, unpaid bills.
Frequently asked questions
Which debts can be cancelled under the Second Chance law?+
The ordinary debts of an individual or a self-employed person: bank loans and credit, cards, overdrafts, finance companies, suppliers or loans between individuals. Not cancelled are maintenance, civil liability arising from a crime or from death and personal injury, compensation for work accidents and occupational disease, the last sixty days of wages, criminal fines and very serious administrative penalties, or the costs of the application itself. Debts secured by a mortgage or pledge are not discharged either, to the extent of the security.
Are tax and social security debts cancelled?+
Only in part. Debts to the Tax Agency can be discharged up to 10,000 euros, in full for the first 5,000 and 50 per cent from there up to the maximum; Social Security debts, for the same amount and on the same terms. The rest remains. In addition, this relief applies only to the first discharge: on later ones no public debt is discharged.
Can I lose my home?+
It depends on the route. With liquidation, your assets are sold to pay creditors and the rest is discharged. With a payment plan you keep your assets, the home included in some cases, and in return you pay over three years, or five in the cases the law sets, among them when the main residence is not liquidated. A mortgage on your home does not disappear by discharge: the security keeps covering what it covers. Choosing the right route is the first decision in the case.
Who cannot obtain a discharge?+
The law lists the cases in which it is not granted. Among them: a final prison sentence in the previous ten years for certain property, socio-economic, document forgery, tax and social security or workers’ rights offences, where the maximum penalty for the offence is three years or more; a final penalty for very serious tax, social security or labour infringements; an insolvency declared culpable; failure to cooperate with the judge and the insolvency administrator; and having given false information or acted recklessly or negligently when taking on debt. In some cases it is cured if what is owed has already been paid. That is why we ask for criminal and penalty records before accepting an instruction.
How long does the procedure take?+
It is a court procedure and is measured in months, depending on the court. An exact timeframe cannot be promised at the outset. If a payment plan is chosen, three or five years of performance are added before the final discharge.
What does it cost and what do I need to provide?+
Fees are assessed case by case and set out in an engagement letter before the case starts, with their scope. For the viability study we need your debts by creditor, income, assets, employment history and criminal and penalty records. With that we tell you whether the case has a prospect and by which route; if it does not, we tell you that too.