In previous blogs, Welex, lawyers and accountants in Marbella, have talked about the Second Chance Law in Spain, how it works and how to access it.

This Spanish law has been reformed and came into force on 5 September 2022.

As explained in previous blogs, the Second Chance Law in Spain is a fair mechanism that allows both individuals and the self-employed who find themselves in situations of insolvency in Spain, to renegotiate their debts and even cancel them in whole or in part, so that they can start from scratch.

To do so, the debtor who wishes to submit to this second chance law in Spain must comply with a series of requirements which, following the aforementioned reform, are as follows:

a) The debtor must be insolvent and prove that he/she does not have sufficient assets to pay the debts.

b) The debtor must be in good faith.

c) The debtor must not have been found guilty in previous insolvency proceedings or have been convicted of economic or financial crimes against public institutions.

In this reform of the second chance law in Spain, the requirement for the debtor to reach an out-of-court payment agreement prior to the insolvency proceedings has been eliminated, so that we can apply directly to the Commercial Court for insolvency proceedings.

The requirement that the debtor must not have rejected a job offer in the last four years has also been abolished.

Furthermore, in this reform of the second chance law in Spain, a debt exemption by means of a payment plan is established, so that we can protect our family home and business assets, in exchange, the debts must be met by means of a payment plan over a period of 3 or 5 years in Spain.

In the event that the mortgage is executed, the debtor, once the property is handed over, will be exonerated from 100% of the outstanding debts, as long as he/she does not have any more assets.


If you have any doubts or need advice on this reform of the second chance law in Spain, do not hesitate to contact Welex, our law firm on La Costa del Sol.