An unemployed woman from Lanzarote manages to cancel a debt of 30,000 euros thanks to the Second Chance Law, with the advice of the law firm, Canarias Sin Deuda.
The debtor, AFG, was involved in a state of economic insolvency and over-indebtedness due to job instability. The non-payment of her credits became a complex reality as she was unable to sustain her expenses since she did not receive any income other than the unemployment benefit. Likewise, she is the mother of a one-year-old baby and her partner is also unemployed at the moment. The Canarias Sin Deuda team, experts in the Second Chance Law, had accompanied and advised on all the procedures to deal with over-indebtedness and the inability to deal with it.
Since 2015, the Second Chance Law allows individuals and freelancers to request and obtain the release of their debts and thus avoid entering a spiral of indebtedness that prevented them from rebuilding their lives. This law is still little known in the Canary Islands, despite the fact that the debt situation has worsened for many families as a result of the current economic situation and the consequences of the pandemic.
The Legal Director of Canarias Sin Deuda, Celenia Gil, explains that “ The Second Chance Law represents for many people and families in a situation of vulnerability, the last chance to get ahead. In this case, AFG met the conditions to resort to the Law of Second Opportunity and, finally, the Court of First Instance No. 1 of Arrecife has issued the granting of the Exemption of Unsatisfied Liabilities (EPI), of almost 30,000 euros that she could not cope with.
The requirements to be able to resort to the Second Chance Law and process the exoneration of all debts are: to demonstrate that the debtor has acted in good faith; have sought a prior out-of-court settlement and that the amount they owe does not exceed five million euros.
“Furthermore, in this case, because AFG did not own assets other than a low-value vehicle, it was granted that she keep it for her travel around the island in his search for employment . Precisely the possibility of also losing the car is one of the fears of people in this delicate situation”, says Celenia Gil.