In a landmark decision, a Las Palmas Court has absolved a debt of more than €12,000 for a resident of Lanzarote, allowing her to keep her vehicle and other assets without having to pay it back.
The ruling exemplifies the impact of Spain's Second Chance Law, which empowers individuals facing insolvency to cancel their debts under certain conditions, enabling them to reintegrate economically without the weight of unpaid bills.
Curquejo Abogados, the law firm representing the resident, celebrated the decision as "another success story for those seeking legal solutions to over-indebtedness." The resident turned to the court after finding herself unable to meet her financial obligations.
The Second Chance Law, officially known as the "Ley de Segunda Oportunidad," was established to offer individuals and small businesses a viable way out of overwhelming debt by offering a fresh start. It allows for the restructuring or cancellation of debts under specific conditions, provided there is no fraudulent intent.
The court's ruling granted the resident the Discharge of Unsatisfied Liabilities (EPI), effectively cancelling her debt and offering her a fresh start without economic pressures. This decision highlights the law's significance, providing a structured approach to financial recovery.
The law firm emphasised the broader impact of this decision for others in similar situations. Erik Curquejo, a lawyer at the firm, stated, "This decision shows that the Second Chance Law is a vital tool for those who genuinely need financial relief. Many are unaware of this legal option and remain trapped in a circle of debt. Our mission is to guide, support, and help them regain economic stability and prosperity."
This case highlights the value of the Second Chance Law as a lifeline for those burdened with unmanageable debts through no fault of their own. Increasingly, people in Spain and the Canary Islands are exploring this legal path to restructure their financial futures.
