The second chance or how to end your debts
The second chance law aims to help individuals and self-employed individuals in insolvency to restructure their debts and have a second chance to recover their financial situation.
To be eligible for this law you must be a natural person or self-employed and you must be in a situation of insolvency. Debtors who can prove that they have acted in good faith at all times and that they have tried to reach payment agreements with their creditors are also eligible.
Any person, whether an individual or self-employed, who is unable to actually meet the established payments.
- They have not been convicted with a final sentence for crimes such as crimes against patrimony, against the Treasury or Social Security for false documentation.
- Those who have been sanctioned by the Internal Revenue Service for serious infractions are not eligible for this law.
- A similar right must not have been applied for in the last five years.
- Nor to have been declared guilty if there was an insolvency proceeding.
Besides being a faster process, it will also be more economical. There is no need to go through the notary's office, no need for a bankruptcy mediator to be present and many other steps that made the process more expensive. It is said that we will be saving almost 30% and that is good news.
Moreover, in little more than a year you will have the whole problem solved. It is said that it can take up to 18 months but it is more usual that in less than a year it will be ready.
The debts that you can cancel with the Treasury amount to 10,000 euros and with the Social Security also the same amount. So in total you can forget about 20,000 euros. Especially for those self-employed businessmen who are quite drowned, it is a great advantage.