The Second Chance is consolidated with faster processes and lower debts, according to the II Personal Insolvency Report of the ICAB
Posted on 19/1/2025
One of the most relevant data from the II Personal Insolvency Report, which was presented yesterday within the framework of the 2nd European Congress of the Second Chance, organized by the Personal Insolvency Observatory of the Barcelona Bar Association (ICAB), is the drastic decrease in the average time of bankruptcy proceedings, which has gone from 560 days to just 242 days thanks to the entry into force of Law 16/2022, reforming the consolidated text of the Bankruptcy Law.
The study reveals a notable decrease in the average amount of outstanding debt, which has fallen from 250,000 euros (2020) to 63,078 euros (2024). Likewise, 90% of the bankruptcies analyzed are classified as "bankruptcies without assets", which implies that the debtors do not have significant assets that can be liquidated.
This analysis is based on the analysis of 299 files, from a firm specializing in Second Chance, of which 79 correspond to bankruptcy proceedings initiated in 2021, 78 initiated in 2022, 100 in 2023 and 42 in 2024.
It has also been emphasized that the data of these files are divided practically in half between those initiated before and after the entry into force of Law 16/2022, of September 5, reforming the consolidated text of the Bankruptcy Law.
The Second Personal Insolvency Report reflects a positive outlook in the application of the Second Chance mechanism in Spain, with more agile processing, a more diverse profile of users and a significant economic impact that allows debtors to reintegrate into society.
These conclusions were presented by Yvonne Pavía, lawyer, treasurer of the ICAB and president of the ICAB Personal Insolvency Observatory; Martí Batllori, vice president of the ICAB Personal Insolvency Observatory; Borja Pardo and Miquel Ángel Salazar, members of this Observatory of the Barcelona Bar Association.
According to Pavía, the objective of this Second Report has been to analyze the profile of the users of the Second Chance mechanism, the duration of the procedures and the variations in the assets and liabilities of the debtors.
