A court in Alicante approved a debt discharge of 264,000 euros for a businessman overwhelmed by loans that spiraled after the Covid-19 outbreak cut his income. The majority of the debts related to a dental clinic. The loan, which had to be settled years earlier, continued to burden the borrower who insisted on being treated fairly under the Second Chance Law. The discharged individual had to close the dental clinic where he worked for another, until unemployment hit during the pandemic, forcing him to seek new loans and borrow even more to cover basic needs. His case was handled by the law firm Repair Your Debt Lawyers, which secured the 264 thousand euro debt cancellation in Alicante under the Second Chance Law.
Fix Your Debt is a firm that focuses on Second Chance Law issues and recently achieved another debt cancellation using this program. The case in Alicante involved a bankruptcy and the Unsatisfied Liability Clearance Benefit, which cleared the debtor from 264,000 euros of debt.
Firm sources explain that the debtor’s financial woes began after he sought several loans to open a dental clinic in 2009. Initially the clinic generated enough income to cover personal expenses and loan installments. However, losses accumulated in 2011, leading to closure. The borrower tried to work for others to repay what was owed but lacked stable revenue to keep up with payments. He faced unemployment for six months when the pandemic struck, making new loans seem the only option to cover essential costs.
The Second Chance Act, approved by Parliament in 2015, led to the founding of the firm Repara tu Deuda Abogados in the same year. The firm positions itself as a leading advocate for individuals and freelancers seeking relief from excessive debt. Its representatives note that awareness of this legal instrument has grown across different profiles as more cases are brought under its protection.
laundered debts
Repara tu Deuda Abogados asserts that it specializes in Second Chance Law and handles a large share of cases and debt cancellations in Spain. To date, the firm reports that it has surpassed the milestone of 170 million euros in cleared debts and anticipates continued growth as more files are processed. The beneficiaries of the Second Chance Law come from all of Spain’s autonomous communities. The firm emphasizes substantial investment in expanding the program nationwide, emphasizing that this mechanism increasingly reaches people facing bankruptcy.
The Second Chance Act provides relief to both individuals and the self-employed if certain criteria are met. In general, eligibility requires a bankruptcy status, a clean record of socioeconomic crimes in the ten years prior to filing, cooperative behavior as a debtor in good faith, and a total debt ceiling that does not exceed five million euros.
For people who do not qualify for this mechanism, the law firm also offers services to cancel other debt types such as credit cards, revolving accounts, microloans, consumer loans, and mortgages. It does this by reviewing contracts with banks and financial institutions to identify abusive terms and filing claims against lenders such as Cofidis, Moneyman, Wizink, Carrefour, Vivus, Banco Santander, CaixaBank, BBVA, Banco Sabadell, myKredit, Kviku, and others. These efforts are described by the firm as part of a broader strategy to help clients regain financial stability under the Second Chance framework.