Law for the second opportunity: renegotiation of debts into equity plan with financial institutions and other private creditors.
Royal Decree-Law 1/2015 of 27 February, second chance mechanism, reducing financial burden and other measures of social order, entered into force on 1 March 2015.
This standard introduces measures to reduce the financial burden of creating an effective mechanism of second chance for individuals and are designed, among others, to soften the application of Article 1911 of the Civil Code, under which the debtor is liable for the fulfillment of obligations with all its assets, present and future.
Indeed, if the contest conclusion liquidation or failure of active mass and by respecting strict conditions, the second chance law allows to forgive the debts of the debtor physical person in good faith, giving the benefit of the exemption from liability dissatisfied.
The individual debtor that is insolvent or otherwise by inability to meet regularly with their obligations, institute proceedings to reach a settlement of payments with creditors.
The request shall be made by standard form signed by the debtor and presented to the notary of his homw town, who shall communicate the opening of negotiations to the competent court for the insolvency declaration.
In case of reaching a settlement, any creditor affected by the agreement may initiate or continue execution against the debtor for debts prior to the communication of opening the file. The debtor can request the cancellation of the relevant attachments.
In case of failure to reach a settlement payment or breach, consecutive contest, which could be completed by the release of unmet debts.

Sophie Mercier
Lawyer UE

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