In Orihuela, a local court recently applied a fresh interpretation of the Second Chance Law, canceling a debt well over 95,000 euros for a resident. Since 2015, this law has allowed individuals to access bankruptcy protections once thought reserved for businesses, offering the possibility to wipe out unfulfilled financial obligations and start anew. It recognizes the hardship of debtors who cannot sustain repayment over time and provides an avenue to be exempt from lingering debt after meeting essential criteria.
The case involved a resident from the Orihuela judicial district who, in 2007, opened a credit card account. According to Antoni Galve, a legal director with Repara tu Deuda Abogados, the firm that handled the matter, credit terms at the time featured very high interest. Rates around 24 percent caused the debt to escalate rapidly as unpaid balances accumulated.
Compounding the challenge, a sequence of life events in 2012 saw the individual begin to receive a disability pension. The pension covered only about half of the minimum wage, reducing the debtor’s capacity to meet ongoing loan obligations and worsening the financial strain.
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To regain control of payments, the debtor sought a fresh card and a plan to address the existing loan. Unfortunately, the original loan continued to grow, and by that point the total debt had surpassed 95,000 euros. The person had no assets available to secure a payoff or reduce what was owed.
The Orihuela courthouse, a familiar backdrop for such cases, has seen several similar petitions. It was in May when the individual contacted Repara tu Deuda and began the procedures to leverage the Second Chance Law. After thorough review to confirm eligibility, the court granted a debt exemption close to 95,265 euros, marking a decisive step toward relief for the debtor.
As this framework continues to attract attention, more ordinary citizens are exploring the options for discharge under the law. In the first nine months of the year, the number of personal bankruptcy requests increased, with more than 700 filings logged and a large majority coming from private individuals seeking relief from unpayable debts.
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Experts note that the momentum behind the Second Chance Law is growing. The process has become more accessible as new proceedings streamline the evaluation of eligibility and the practical steps toward discharge. As awareness increases, more people see a potential path out of overwhelming debt and a chance to rebuild financial stability, measured against their individual circumstances and the specifics of the law.
Legal professionals emphasize that while the law provides a route to relief, it requires careful preparation and a clear demonstration of hardship. The experience in Orihuela and similar cases across the region illustrates the balance the courts strive to achieve between fairness to debtors and the protection of credit systems. The ongoing trend suggests that more citizens will pursue this remedy when faced with insurmountable financial pressure, and the courts will continue to adjudicate each petition with careful scrutiny and respect for the letter of the law.