What debts can be exonerated with the Second Chance law

The Second Chance Law has become an escape route for many people who have a complex financial situation or are immersed in a situation of over-indebtedness. The mechanism allows for renegotiating or cancelling non-payments, and gives debtors the possibility of a new financial start.

However, not all types of debts can be eligible for exoneration through this legislation. For this reason, before taking advantage of the regulations, it is essential to know which obligatory payment commitments can be cancelled and which cannot.

In this sense, Abogados Para Tus Deudas is a law firm specialized in the Second Chance Law that, below, provides more information on the subject.

The debts that can be cancelled with the Second Chance Law
The lawyers and experts in banking and bankruptcy law at the Abogados Para Tus Deudas firm emphasize that, with the Second Chance Law, all types of debts can be cancelled, as long as they are not included within the exceptions stipulated by this mechanism. In this sense, payment obligations that can be eliminated include non-payments contracted with financial institutions such as personal loans, microcredits, credit cards, invoices and suppliers, among others.

Likewise, legaltech experts assure that, since the last reform of the law, even debts with Social Security and the Treasury can be paid, with a limit of 10,000 euros for each of these organizations. Therefore, thanks to this mechanism, up to 20,000 euros in total could be exonerated with both administrations.

On the other hand, Abogados Para Tus Deudas highlights that among the unpaid debts that cannot be cancelled by the Second Chance Law are debts for non-contractual civil liability, debts for civil liability derived from crimes, debts for alimony attributed in separation, divorce and annulment processes, debts for Public Law credits, debt for non-payment of the mortgage and others that can be consulted in article 489 of the Bankruptcy Law.

Who can benefit from the Second Chance Law?
According to current regulations, all natural persons and self-employed persons who are in a situation of insolvency with more than one creditor can benefit from the Second Chance Law, as long as they are debtors in good faith, do not have financial crimes or defaults contracted for more than 5 million euros.

In case users have doubts about whether it is possible to comply with the regulations, it is best to consult with a team of professionals in the area such as Abogados Para Tus Deudas. The firm's expert debt cancellation lawyers study and analyze the client's situation and, if they meet the requirements, advise on how to resolve the debt problem, create the file that proves their state of insolvency and present the request for the law in the Commercial Court.

The experience and knowledge of these specialists has allowed them to successfully resolve hundreds of cases related to non-payments, giving clients the possibility of freeing themselves from their debts forever.