In 2015, Spain introduced the second opportunity law. This law was incorporated to the Spanish legal system by means of Royal Decree-Law 1/2015.The aim of this law is to giveindividuals the opportunity to reset their debts or, should they be unable to pay their creditors, for their debt to be partially forgiven, thus allowing them to “re-start”.
The advantage of this rule is that it provides creditors partial satisfaction in situations whereby in any other circumstance they would not recover their credit.
At the same time, the person required to pay can escape from the debt spiral and avoid being in downfall for the rest of their life, as the interest rate on the credit would continue to increase.Overall, the client can choose to pay their debt upon reaching an agreement with their creditors and the latter, thanks to the restructuring of the debt, may partially recover their credit, which will always be better that not recovering a penny.
This Spanish legal rule is based upon the universal asset liability principle; thus, when a person takes on a debt, they take responsibility thereof with all their assets, present and future. It is true that there are certain assets that cannot be seized, such as a retirement pension up to a certain amount or assets that are used for working.
Thislaw firm offers its clients this type of counselling and negotiates the best agreements possible with the creditors in order to restructure the debt and, hence, give our clients a second opportunity.
AMENDMENT OF CONTRACTS: THE “REBUS”CLAUSE
The Spanish legal system allows for the provisional or definite amendment of contracts, in circumstances where an unforeseen risk which is not attributable to the parties hasinterrupted the balance in the provision of services between the contract parties. The clearest example of an unforeseeable situation, which has drastically reduced the economic activity of the whole country, is the Covid-19 pandemic. Thousands of commercial premises have had to close their doors, which means no income.In these cases, an amendment of the contract would be advisable in order to find a new balance in the provision of services. This firm provides counselling and services to:
- Negotiate, study and prepare contractual conditions which may be advantageous for the client, trying to reach an extrajudicial agreement.
- File a lawsuit, should an extrajudicial agreement not be possible.