Second Chance

TheSecond Chance, is a procedure aimed at entrepreneurs and individuals (the latter since 2015) who have failed in their business activityor who are unable to face the payment of their debts due to a situation of eventual insolvency.

Do you need a solution for your debts quickly? Do you need an expert lawyer in second chances? Are you in a situation of personal insolvency proceedings?

WHAT DOES IT CONSIST OF?

Through the second chance law, the acquired debt with creditors can be negotiated. This is done through an extrajudicial payment procedure that can offer more advantageous conditions.

We handle second chance cases both in BARCELONA and MADRID, through our Offices in MADRID capital, Las Rozas, and BARCELONA Capital

WHO CAN ACCESS THE SECOND CHANCE?

Any person can access this option(individual entrepreneur, natural person, or individual) in a situation of insolvency. Through a conciliation mediator, moratoriums can be agreed upon. These deferrals can be up to 5 years and discounts ranging from 50% to 90% of the debt, depending on the case.) in insolvency situation. Through a bankruptcy mediator, moratoriums can be agreed. These deferrals can be up to 5 years and discounts ranging from 50% to 90% of the debt, depending on the case.

WHAT IS THE PROCEDURE?

The second chance process consists of two phases:

• Initial mediation phase: A notary from the debtor's domicile is appointed through the Notary Association of Catalonia (or the specific city where the client is located). The notary will draw up a record for the appointment of the mediator, who, once appointed, will try to reach an extrajudicial payment agreement with the creditors. As a result of this attempt to reach an agreement, partial or total exoneration of the debt may occur (depending on the case).

• Judicial phase: This phase occurs if an agreement is not reached in the first phase. Therefore, it will be the Judge who will decide whether total or partial exoneration is appropriate.