2nd Opportunity Law

The law of the 2nd opportunity for natural persons establishes that people who have not been able to face their debts have a procedure to exonerate the part that they have not been able to satisfy and so they may have a second chance to restart their future without the threat of debts from the past.

The reform of the Bankruptcy Law through named Law 25/2015, of July 28, incorporates the possibility of agreeing on the benefit of the exoneration for the unsatisfied liability. From this exoneration and on, article 1911 of the Civil Code, by virtue of which the debtor is liable for his obligations with all his present and future assets, would cease to apply.

The exoneration of the unsatisfied liability must be requested by the debtor once the conclusion of the bankruptcy has been declared, either by liquidation, or by insufficient assets.

The debtor is required to be in good faith to avoid that the exoneration becomes an instrument to avoid responsibilities, and four requirements are established for this:

1. That the contest has not been found guilty (except that it has been found guilty for not accomplish with the duty of requesting the declaration of the contest) .
2. That the debtor has not been declared by final judgment in ten previous years to bankruptcy’s declaration, for crimes against property, socioeconomic order, making public, social security or workers’ rights.
3. That the debtor has entered into or attempted an out-of-court payment agreement.
4. And that he has satisfied all the credits against the estate, all the privileged bankruptcy credits and if he has not tried a prior out-of-court settlement, at least 25% of the amount of the ordinary bankruptcy credits.