Second Chance Law in Spain: How to Legally Cancel Your Debts

Do you feel overwhelmed by your debts? Are you self-employed or an individual who can’t meet your financial obligations? The Second Chance Law might be the solution you’re looking for.

In this article, we’ll explain what it is, who can benefit from it, and how to start the process to legally cancel your debts in Spain.

What is the Second Chance Law?

The Second Chance Law is a legal mechanism designed to help individuals and self-employed workers who can’t repay their debts. Its main goal is to give them the opportunity to start over, free from the burden of debt.

This law allows for the full or partial cancellation of debts, provided certain conditions are met.

Who Can Benefit from the Second Chance Law?

This legal process is available to individuals (not companies) who:

• Are in a situation of insolvency.

• Have multiple creditors.

• Are acting in good faith.

• Have not been convicted of financial crimes in the past 10 years.

It applies to both employees and self-employed individuals in debt.

Requirements to Apply

To benefit from this law, you must:

• Have debts you cannot repay.

• Not have rejected a suitable job offer in the last 4 years.

• Have attempted an out-of-court payment agreement (in some cases).

• Not have used this law in the past 5 years.

What Are the Benefits?

If you meet the requirements, the Second Chance Law can help you:

• Cancel your debts (except for certain types like alimony or fines).

• Stop embargoes and legal actions against you.

• Start fresh, without pressure from creditors.

• In some cases, keep your primary residence.

How to Start the Process

There are two possible ways to initiate the procedure, depending on your case:

1. Out-of-court, by trying to reach an agreement with creditors.

2. In court, by filing the request with the competent court.

   
   

It is highly recommended to have a lawyer specialized in this area to guide and support you throughout the process.

Specialist Lawyer in the Second Chance Law – Serving Vera, Mojácar, Garrucha and Online

At LRJ Abogados, we analyze your situation and help you apply for the Second Chance Law in a clear, secure and effective way.

🏡 In-person appointments in Vera, Mojácar, Turre, Garrucha, Los Gallardos and nearby areas.

🌍 We also work remotely with clients living abroad.

💼 Step-by-step legal guidance until your debts are canceled.

Wondering if you qualify? Contact us for a free case evaluation.