New Law in order to reduce financial burden. (Real Decreto-ley 1/2015, de 27 de febrero, de mecanismo de segunda oportunidad, reducción de carga financiera y otras medidas de orden social)

The financial crisis that so many citizens are still suffering has implied a worrying level of debt in Spain, being for them so difficult to face it. The Spanish Government thought it was required to approve by law a Second Chance “Real Decreto- ley”.

In broad strokes, the new Law has been adopted in order to put a corporation, legal entity, and an individual insolvency proceeding on the same level. So, either an employee or a freelance who is facing a debt situation, as long as they are acting  in good faith, will be able to settle the debt using their estate, patrimony, within 5 years.

This new legislation has been created with the idea of making easier to find an alternative dispute resolution so as to reorganize the outstanding debts and pay them off. Nevertheless, it was a mistery wether if mortgages would be included or not, finally they  have been subjected too.

On the other hand, this “Real Decreto” will not be applied to unpaid taxes which should have been satisfied to the Tax office and the Social Security.