Legal system
Sections
Highlight
Sections
Highlight
A Malaga court has exonerated the former owner of a car dealership business from paying a 190,000-euro debt, allowing him to start a debt-free life.
Due to the widespread drop in demand and the increase in costs during the Covid-19 pandemic, the man was forced to take out two large loans in an attempt to save his business. Part of the credits were government-backed ICO loans, which were given during the Covid-19 crisis to support self-employed individuals and small- and medium-sized businesses.
Even with the loans, he could not achieve his goal, which made paying the loans back impossible. As a result, he was declared insolvent in December 2023.
Now, thanks to the 'second chance law', he has been granted a pardon. The court has assessed that he fulfils the requirements as a 'debtor in good faith', given that he has no convictions for economic crimes and that he has not concealed assets or information.
Therefore, with the exception of a small amount - 300 euros - that he owes to Mijas town hall, he has been exonerated from the rest of the loans and credits. In accordance with this resolution, the creditors will also have to update their registers so that he does not appear as a debtor.
According to law firm Ley 57, this court order highlights "the positive impact of the second chance law, which allows individuals to get rid of debts when they can no longer pay them, with the aim of starting again without the burden of insolvency". The mechanism has been in existence since 2015, although it is not well-known.
Publicidad
Publicidad
Publicidad
Publicidad
Esta funcionalidad es exclusiva para registrados.
Reporta un error en esta noticia
Comentar es una ventaja exclusiva para registrados
¿Ya eres registrado?
Inicia sesiónNecesitas ser suscriptor para poder votar.