Over 200,000 Spaniards Cancel Their Debts with the Second Chance Law

Over 200,000 people in Spain have used the Second Chance Law to fully or partially cancel their debts, which on average range between €30,000 and €40,000, according to Arriaga Asociados. The mechanism, in effect since 2015, allows individuals and self-employed workers in insolvency to start anew.

More than 200,000 citizens in Spain have already taken advantage of the Second Chance Law (Law 25/2015, of July 28) to fully or partially cancel their debts, according to data from the firm Arriaga Asociados, as reported by guadanews.es. The average amount of the debts discharged is between €30,000 and €40,000, although it varies according to the personal, economic, and legal circumstances of each case.

This legal mechanism allows individuals and self-employed workers in a state of insolvency to free themselves from their financial obligations when they cannot meet them, following a judicial process that requires acting in good faith. The profiles that resort to this route include workers, families, and small entrepreneurs who have seen their debts become unsustainable due to illnesses, divorces, or unemployment.

"Most of those who consult us have not stopped paying by choice, but because an unexpected change has prevented them from continuing to meet their financial commitments. The Second Chance Law exists to offer solutions to those who act in good faith and meet the necessary criteria. Our experience shows that even when someone thinks they have no alternatives, there is always a possible way out"

This is stated by Jesús Ruiz de Arriaga, managing partner of the firm, who emphasizes that each case requires an individual analysis to verify compliance with the requirements of the regulation. The firm claims to file the application within a maximum of 15 days from receiving the documentation and works from the early stages of the process to stop seizures, accumulating interest, and phone harassment.