Practice 02 · Second Chance
Second Chance Law. If your case qualifies, we tell you.
Discharge of unsatisfied liability for individuals, whether business owners or private debtors. Prior good-faith assessment, denial causes, payment plan when applicable.
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The Spanish Second Chance Law is the colloquial name for the mechanism allowing an individual, whether business owner or not, to be released from unpaid debt subject to legal requirements, either through liquidation or a payment plan.
Frequently asked
Who can apply for the Second Chance Law?
Any individual, whether business owner, self-employed or private debtor, meeting the requirements of Article 487 TRLC: acting in good faith, no firm conviction for relevant economic offences in the previous ten years, no previous discharge within the legal cooling period, and the other statutory conditions.
Can I keep my primary residence?
A mortgaged primary residence has specific treatment. The portion covered by the mortgage is excluded from the discharge and the bank retains its in rem action. The uncovered portion can be discharged under Article 489 TRLC. Keeping the residence typically requires continuing the mortgage payment, negotiated dation in payment or a viable payment plan.