Badia)advocats advises individuals and freelance professionals so that they can obtain the cancellation of over debts with the so-called BEPIs

The Second Chance Law allows natural persons to request, under a bankruptcy proceeding, the Beneficio de Exoneración del Pasivo Insatisfecho (BEPI) with the consequent cancellation of over debts, provided they comply with a series of requirements established in the law and without neglecting the rights of its creditors.

There are many people who, for various reasons, have been forced to carry a slab of debts that they will never be able to repay, especially because of progressive interests that are accumulating day after day.

Unlike other countries of the European Union, in Spain, until 2015, natural persons did not have any mechanism that allowed them to start over and not have to answer indefinitely for over debts, unlike legal entities that could make and ending with the bankruptcy procedure. 

This situation changes in 2015 with the approval of Law 25/2015, of July 28, on the second chance mechanism, financial burden reductions and other social measures (the well-known Second Chance Law) that allows the debtor natural person avail themselves of a mechanism to be able to wipe away debts and start over again.

As the Explanatory Memorandum of the Law says, the goal of this regulation is that a natural person, despite a business or personal economic failure, is given the opportunity of getting his or her life back on track and also risking new ventures, without having to drag indefinitely a slab of debt that they will not be able to satisfy. In short, the idea of the Law is that anyone deserves the right to a second chance.

The mechanism of the Second Chance Law establishes a regulatory and legal assistance process that ends finally with the concession of the BEPI, meaning the debts settlement of all those private individuals and entrepreneurs that have already liquidated its assets and do comply with a series of requirements, all of them framed within the principle of good faith.

This is a delicate judicial procedure, like any other bankruptcy procedure, which requires the accompaniment and professionalism of specialized lawyers.

In Badia)advocats we analyse each case individually, we offer a personalized proposal and we accompany our clients throughout the bankruptcy process.