Judge Francisco José Soriano Guzmán will be one of the speakers to attend the Mediterranean Professions Congress.The Alicante Bar Association and the Society of Community Economists will be holding a roundtable in Benidorm next week, where they will examine innovations in the Second Chance Law that allows individuals and themselves. He was employed to clear his debts. Appointed to the Provincial Court of Alicante, of which he has been a member of the Trademark Court of the European Union since 2004, and currently president of Commercial Court No. 19 in Madrid, he criticizes the preferential treatment of public creditors in regulations rather than the private sector. .
The so-called Second Chance Act was approved in 2015, but it was only after 2020 that the number of cases really started to matter. Why did it take so long to get off the ground?
Several factors may come together, but the main one is ignoring the possibilities established by law for the bankruptcy of natural persons, and often efforts to resolve the issue without going to court.
Are you reaching your goals?
More practical implementation is slowly occurring, but still far from the estimated number of cases.
What is the most common profile of people who usually apply for this arrangement?
Self-employed, small businessmen and, increasingly, the directors of companies that are bankrupt and whose responsibility it is to cause these companies to go bankrupt or to meet their tax obligations and start the business, the bankruptcy Tax Office and its liability derivatives; Although he is acquitted depending on the interpretation of the law given by the courts in each province in Spain. For example, in Seville they clear public credit, and in Murcia no. We asked the EU Court of Justice in Alicante.
What deficiencies have you identified in the implementation of the law so far?
In my opinion, the law does not really give a second chance to those whose assets are completely liquidated, because public credit is not completely extinguished, which will make it impossible for them to engage in any other economic activity, leading to marginalization and marginalization. Informal economy.. In other neighboring countries, when liquidation takes place, all debts, including public debts, are cleared. This is a second chance. Precisely, the commercial division of the Alicante Court has taken the lead in this regard, as it has put a question to the Court of Justice of the European Union for a preliminary ruling to clarify or interpret any rule that casts doubt on acquittal. public credit.
Has it been fixed with the changes introduced at the end of last year?
There have been changes in the law, but interpretation doubts continue to rise among lawyers and judges, which is not a good sign.
Is it fair for the administration to maintain this privilege and prevent or limit the complete write-off of debts?
I have commented earlier that even if all the debtor’s assets are liquidated, public credit is a preferential treatment that is exempt only in a symbolic part, not in its entirety, and which, in my opinion, does not have an appropriate justification in the law. Exclusion, which is a requirement of the European Directive on bankruptcy.
What criteria must be met to benefit from this arrangement?
You must be a bona fide debtor, the law does not explain what this consists of, and there are no exceptions, for example, if you have been convicted of certain crimes or serious tax offenses, or the debtor acted recklessly in fulfilling obligations. , among other things.
One of the biggest concerns in these situations is what usually happens to the habitual residence. Can it be protected?
It is an issue that the remedies given by the commercial courts are varied, but there is a tendency to allow the remaining assets to be retained if they are liquidated and the debtor can be willing to pay the mortgage installments.
Do you think the number of cases will increase? Have the necessary resources been provided?
I believe it will increase and there are some predictions as new commercial jurisdictions are created.
What mechanisms does the law provide to prevent abuses, and are there professional borrowers who take advantage of this opportunity to leave outstanding debts, so to speak?
Borrowers you call professional may be subject to one of the numerous exceptions in the law, which means they can no longer access the system. In addition, those who have previously obtained their exemption are prohibited from reapplying for periods of two to five years. My advice is to seek expert advice on the matter that truly allows the borrower to start over on a business and economic level.