The Second Chance for Spanish businesses is designed for individuals who have initiated or completed bankruptcy proceedings to allow them to take advantage of new opportunities.
Under this legislation, recently introduced in Spain, individuals can free themselves completely of debt and start again from scratch with no effects from the previous insolvency.
This second chance gives you a clean slate, particularly important because it allows you to stay active in the business world.
Known as segunda oportunidad, the Second Chance for Spanish businesses is one of the services we offer within our assistance for companies.
Below, you will find more information about the legislation behind the second chance, who it applies to and how you can take advantage of it.
What happens during bankruptcy proceedings in Spain?
During insolvency proceedings, the principal aim is to reach an agreement with creditors so that financial difficulties can either be alleviated or removed altogether.
If these negotiations fail, the next objective is to exonerate all debt owed by winding up company assets. The absence of debt allows an individual to start afresh in business with a clean slate.
However, this is not possible and in some cases, individuals find themselves still in debt despite having liquidated their company.
This situation affects all financial aspects of their lives – for example, their name features on creditors list and as a result, they are unable to take out loans. Their assets such as their home or bank account may be embargoed by creditors in a bid to satisfy debts.
And they are unlikely to be able to start up a new company because of debt owed from a previous business.
The legislation offering a Second Chance for Spanish businesses was designed to help individuals free themselves from the vicious circle of debt.
It offers them the opportunity to start again with a clean slate. Introduced relatively recently in line with EU regulations, the law brings a breath of fresh air to the Spanish business world.
Find out more about how to deal with bankruptcy in Spain. Link to bankruptcy in Spain section.
Who can apply for the Second Chance for businesses in Spain?
The option is open to both self-employed individuals and business owners who are affected by financial difficulties, be it through lack of activity and/or unpaid loans. Individuals in debt through unemployment or a loss of income can also apply for a second chance as can family units.
In short, the legislation allows for anyone with problems from past debt to have the opportunity to start anew. In our experience, this tool is often life-changing, particularly if you wish to set up a new business or apply for a loan in the near future.
Find out how we can help you remove your name from creditors lists in Spain.
What are the chances of success?
If you are eligible for the Second Chance for Spanish businesses, the process is usually quick and easy. Plus, the outcome is predictable since you will be exonerated from all your debts.
Before we take on your case, we carefully examine it and make sure you meet all the legal requirements. This allows us maximum success in applying for the Second Chance and ensures the right outcome for you.
What are your fees for the Second Chance?
At CostaLuz Lawyers, our principal aim is to help you in the best possible way and this includes charging reasonable fees. We adjust our charges to your personal circumstances to ensure that they reflect these.
In any case, we are confident that you will find our fees reasonable, particularly as they will ensure you are debt-free and able to start again in the business world.
Contact us for a quote for our services to help you and your company.
What about property debt in Spain?
There are several solutions to property debt such as default on mortgage payments in Spain.
They include negotiating a return of the property to the bank or new terms for your mortgage. The Second Chance for Spanish business offers a wider scope than these and allows you to find a global solution to your financial problems including a mortgage.
At CostaLuz Lawyers, we are experts in helping foreigners deal with issues with their debt including mortgages in Spain. Contact us to find out what solution will work best for your particular situation.
Can you help me buy more time with the bank?
When it comes to problems with property loans, your best bet is to negotiate with your bank.
We offer a range of services designed to find an ideal solution to suit your financial circumstances. Find out more about how we can help with your Spanish mortgage or if you find yourself in negative equity.