Seize Your Second Chance: Understanding the Second Chance Law
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Practice areaDebt problems feel heavier when you do not know your options. A clear, honest read of where you stand and what the law actually lets you do about it.
Whether you are an individual struggling with debt or a business owner facing insolvency.
The Ley de Segunda Oportunidad lets an individual who has acted in good faith apply to have unpaid debt written off after their available assets have been used to pay creditors as far as possible. It exists specifically so that one financial crisis does not follow a person forever.
The Second Chance Law is for individuals, not companies. If your company is insolvent, it goes through concurso de acreedores instead, which can end in restructuring or liquidation. As a director you may still be able to use the Second Chance Law personally afterwards for any debt you guaranteed.
Not always. Many cases start with an out-of-court settlement attempt, where we negotiate directly with creditors on your behalf. Court proceedings only become necessary if that settlement fails or the situation requires formal insolvency protection.
It depends on your situation, including whether the property is mortgaged, whether it is your primary residence, and what other assets and debts you have. This is exactly the kind of question we go through in detail at the first consultation before recommending a path forward.
An out-of-court settlement can move in a matter of months. A formal concurso de acreedores or Second Chance Law process typically takes longer, often a year or more, depending on the complexity of the debts and assets involved. We give you a realistic timeline once we know the details.