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Lawyers in Mallorca specialized in Law of second chance

Law of second chance

It is a mechanism established by the Bankruptcy Law to guarantee that a natural person (whether an entrepreneur or not) can pay off all of his debts normally in the event that he finds himself in a situation of insolvency.

The Unsatisfied Liability Exemption (EPI), also known as the "Second Chance Law," is a very useful tool for allowing someone who has fallen into financial difficulty to reenter the workforce or even the business world without having to carry the burden of his previous debts. However, this is only applicable if the person seeking to utilize this tool did so as a result of an unforeseen or undesirable circumstance, meaning that he must have behaved honorably.

Depending on the circumstances, the Second Chance mechanism may entail the sale of all assets, the cancellation of unpaid debt, or the presentation of a three- or five-year payment plan.

However, it should be mentioned that if the debtor complies with certain requirements outlined by the law, he may be able to keep his regular residence.

We at Capllonch Advocats are aware of how challenging it can be to deal with a challenging financial situation. We are dedicated to giving you another chance and assisting you in regaining your financial stability because of this.

It is a system established by the Bankruptcy Law to guarantee that an individual (whether or not they are an entrepreneur) can pay off their debts in the event that they find themselves in an insolvent situation.

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Requirement 1

Being a naturally occurring person Only natural persons who work as independent contractors or individuals are covered by the second chance law. Not applicable to companies.

Requirement 2

Having insolvency: In order to benefit from the second chance law, you have to be unable to pay your debts. This is the second requirement.

Requirement 3

Not having been found guilty of financial crimes or having engaged in major tax, social security, or other offenses within the previous ten years.

Requirement 4

Public law credits are not covered by the agreement and will need to be discussed individually with the administrations. In a similar vein, these public debts will continue to be outside the EPI and cannot be exempted under current regulations.

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