2023-10-14 07:02:19
They set up a business with horses, but it went under and they were left without income with which to pay the mortgage payments. To try to stay afloat, the couple requested loans from several financial companies and also resorted to ‘revolving’, credit cards that allow them to have a specific loan that can be repaid in installments, but the couple only managed to make their debt will increase, with increasingly higher interest rates.
Her debt exceeded 270,000 euros and neither his pension, as a retiree, nor her salary as an official of the Government of Extremadura, were enough to cover it.. After two years with 30% of the garnished woman’s salarythe Court of First Instance number 5 of Badajoz has forgiven the couple the debt they accumulated through the Second Chance Lawa legal mechanism that allows companies and individuals to be exempted, as long as a series of conditions are met.
“They met all the requirements and one year after starting the procedure they are free of charge and have been able to start again”, highlights his lawyer, Gustavo Gómez Vázquez, whose office specializes in this type of case. His names have missing from the defaulter filesthey no longer have difficulties in taking out any insurance and, after a long time, They can use all of their income, since once the court forgives the debt, their payrolls and pensions are no longer seized. “Emotionally, the situation had affected them a lot, they were devastated and now they can breathe,” says Gómez Vázquez.
In his case, as his lawyer explains, The debt was generated by the increase in the price of feed and other setbacks, which ruined business plans and expectations. of marriage, which at all times he acted “in good faith.”
The step prior to requesting in court to benefit from the Second Chance Law is to declare bankruptcy and prove that you do not have assets or assets with which to pay the debts. In the case of this couple, the bank with which they took out the mortgage kept the property where they had their stud farms.
These judicial procedures take on average between 6 months and a year to resolve and the orders are final. In 2022, the Second Chance Law was modified to shorten the deadlines for the exoneration of debts and cases, instead of being processed in the Courts of First Instance, from that date on they are resolved in the Commercial Courts.
Applicants increase by more than 40%
According to Gómez Vázquez, more and more people in a situation of insolvency are resorting to the Second Chance Law, a legal mechanism regulated in the bankruptcy law that, if a series of requirements are met, allows companies and individuals to cancel debts to be able to start from scratch. In recent years, in Extremadura, Court applications have increased by more than 40%.
The conditions that must be met to qualify for this legal figure are several.. Thus, we must prove that it is impossible to pay the debt (first the applicant must declare bankruptcy), and demonstrate that he is debtor in “good faith”, that is, it can be verified that the debt has not been generated maliciously, but for other reasons. Furthermore, it is It is essential to have at least two creditors. There is no limit on the amount owed, except in cases where it is with the Treasury or Social Security, the limit is set at 10,000 euros.
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