A judge has allowed him to keep his house and has forgiven a debt of 43,000 euros to a married couple from San Juan de Aznalfarache, thanks to the Second Chance Law. The couple had to take out several loans to get ahead after a time of job insecurity and unemployment, also having two college-age children, which did not help them save at home.
The Debt Assistance Association has obtained the exoneration of all the debts accumulated by these Sevillian neighbors in just 10 months. The achievement includes that ex-debtors can keep their home and the vehicle they owned, maintaining the mortgage loan.
The Mercantile Court number 2 of Seville has issued the order that exempts these former debtors from paying any debt, except the mortgage on their home. This includes saying goodbye to 42,783.31 euros that they claimed. They will only have to continue facing the mortgage, in exchange for keep the home owned.
As a result of the 2008 crisis, the situation of this couple became more complicated due to unemployment. Both found themselves out of work shortly after the boom real estate and difficulties came. Thinking that they would come out on top, they requested some loans to move forward, but years later their forecasts were not met and they were forced to request more financing to pay for their children’s studies.
It was then that they contacted the Debt Assistance Association, going to the Seville office, where Pepe Domínguez, lawyer responsible for the case, He explained to them that they met the requirements to benefit from the Second Chance Law. “This couple did not get into debt to indulge themselves, but for essential family expenses, as were the last two credits requested to pay for their children’s university. When we explained to them that they could stop paying the credits for judicial protection and save part of their salaries, they didn’t even believe it. They have been more than ten years without being comfortable at the end of the month”explains Dominguez.
Regarding why they have been able to keep the house, the key has been, according to the lawyer, “being able to pay the mortgage loan on the house, in addition to the fact that there was an amount to be repaid similar to the estimated value of the property.”
Benefits of the Second Chance Law
The benefits of the Law begin as soon as the procedures begin. The bankruptcy reform of September makes everything speed up, including the declaration of insolvency of the interested parties. This statement allows suspend the payment obligation and avoid any embargo on the bankrupts. Both on payroll and on their assets and rights.
In this case, this demand was oriented so that in the judicial phase there is no liquidation of assets of the bankrupts. “Despite owning a house and a car, we had arguments to avoid selling it. The house is up to date and the car does not have enough value, so the liquidation only generates damage to the associates ”, they explain from the Association.
Once in the bankruptcy phase and certifying that the pertinent requirements are met, the court had no choice but to issue the EPI (exemption of unsatisfied liabilities).
What requirements must be met to process the Second Chance Law?
To benefit from the procedure, it is necessary to meet a series of requirements, which have changed with the bankruptcy reform. These must be accredited before the competent court before being able to benefit from the judicial procedure and are the following:
- The insolvency of the interested parties.
- Not have been exonerated in the last 5 years.
- Lack of socioeconomic crimes.
This sentence leaves the associates’ creditors absolutely free of charge and allows them to request the exclusion of all delinquency files.
It is worth noting that only this Association has managed seven favorable rulings of the Second Chance Law in Seville this May, a clear example of the boom that this mechanism is experiencing in the province.
2023-06-01 08:28:15
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