Bankruptcy proceedings beat them historical record in the province of Alicante during first quarter of the year, but it wasn’t the companies – for which this procedure was originally intended – that triggered these numbers. First time in history, number of processes started private citizens exceeded those recorded by companies and freelancers, after shooting almost 35% During the last year.
An increase in which experts connect coup He Pandemic existed in many local economies, but above all, the so-called Second Chance LawThis allows anyone to get rid of their debt permanently, provided they can prove that they tried to pay by all means available and were unsuccessful.
In this way, they were heard in provincial courts between January and March, according to the latest data of the General Assembly of the Supreme Court. 236 requests competition, 14% more compared to the same period last year and highest figure for a single quarter The entire historical series containing this statistic dating back to 2007.
However, the evolution was very different depending on the type of applicant. Thus, the real increasenon-commercial natural persons”, that is, among citizens who resort to this method in order to cancel their debts and avoid persecution for life. all together 128, 35% more more than a year earlier and more than double that in the same months of 2020 or 2019.
fewer companies
In this way, they surpassed the total number by leaving the bankruptcy applications filed by companies slightly behind compared to a year ago.r108 vs 112 Then. However, a distinction must also be made, as requests from legal entities (companies) decrease as requests from legal entities (companies) decrease. freelancers (34 versus 31 last year).
CEO and co-founder of Devesa & Calvo, a law firm specialized in labor law, David Devera, Increase in bankruptcy petitions from individuals, from the pandemicIt has left many citizens without income and has caused some to be unable to repay their loans.
But beyond the current situation, the dean of the Alicante Economists Association, Francisco Menargueswhat really encourages these numbers, more information That this possibility exists in Spanish legislation from 2015 onwards. Prior to this date, when a person owed money, he had to account for it throughout his life unless he paid the full amount. debtor.
Moreover, the Menargues figure will continue to increaseSince mediation requests Attempting to close a settlement with creditors – the step before seeking relief, called the Exemption from Unmet Liabilities (BEPI) – has escalated in recent months.
In large part, this greater awareness of the Second Chance Law is also due to the campaigns launched by specialist law firms As with the ground clauses of mortgages, it has emerged in recent months.
Regarding the slight decline in commercial bankruptcy filings, David Devesa, for now, government-approved moratorium allowing companies during the pandemic delaying the declaration of bankruptcy, without the managers incurring criminal liability, which may delay some procedures. But Devesa also points out that the recovery in the economy and consumption has allowed most companies to significantly improve their numbers. “Another thing is what might happen after the summer if the moratorium ends, consumption slows and operating costs continue to rise due to inflation,” the expert warns. Of course, it shows that for now the situation is “calm” and a major renegotiation of bank debts has not yet been recorded.
Guarantees and consumer loans
While the profile of applicants for the so-called Second Chance Act is increasingly diverse, Francisco Menargues, dean of the Alicante Association of Economists, points to two circumstances behind most of these cases. On the one hand, there are those who have signed on as a guarantor for some type of loan to facilitate a family member’s loan application, or those who are entrepreneurs or self-employed who are the guarantors of their own business loan and business loan. personal assets.
The second most common situation is that people who borrow excessively by applying for consumer loans are very often with “revolving” type credit cards. After a few decisions, he saw interest as a usurer, a product that was also in the eyes of many law firms.
Last year, 325 people from Alicante requested to have their bankruptcy case cleared in court, an increase of 27% compared to the previous year. A number that this exercise will increase further if the current trend continues.