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, A. F. G., she 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 could not sustain her expenses since she did not receive more income than unemployment benefits. She is also the mother of a one-year-old baby and her partner is also currently unemployed. The Canarias Sin Deuda team, experts in the Second Chance Law, has accompanied and advised her in all the procedures to deal with over-indebtedness and the inability to cope with it.
Since 2015, the Second Chance Law allows individuals and the self-employed to request and obtain the release of their debts and thus avoid entering a spiral of debt that prevents 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 vulnerable situations, the last chance to get ahead. In this case, A.F.G. met the conditions to resort to the Second Chance Law and, finally, the Court of First Instance No. 1 of Arrecife has issued the granting of the Exoneration of Unsatisfied Liabilities (EPI), in the modality of the general regime which amounted to a debt of almost 30,000 euros that she could not face”.
The requirements to be able to resort to the Second Chance Law and process the exoneration of all debts are: demonstrate that the debtor has acted in good faith; have sought a prior extrajudicial agreement and that the amount they owe does not exceed five million euros.
“Furthermore, in this case, because A.F.G. did not own assets beyond a vehicle of little value, it was granted that she keep it for her travel around the island in her 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.
