Alicante Judge Cancels €264,000 Debt for Businessman Using Second Chance Law

In a significant legal victory, an Alicante court has taken a compassionate approach by cancelling a substantial debt of €264,000 owed by a struggling businessman.

The decision was made in response to the dire financial circumstances that befell the man due to the devastating impact of the COVID-19 pandemic, which left him without a source of income.

The majority of his debt burden stemmed from loans he had undertaken in the past, primarily to fund a dental clinic that he was forced to close several years ago.

However, even after the closure of his clinic, he diligently attempted to honour his financial obligations.

Initially, his dental practice had been thriving, generating sufficient income to not only cover his personal expenses but also service the instalments of the loans he had taken out.

However, the tides turned in 2011, when months of consecutive losses prompted him to make the decision to shut his business.

In an earnest attempt to meet his outstanding credit obligations, he transitioned to working as an employee. Unfortunately, the unpredictable nature of employment opportunities prevented him from maintaining the stability required to consistently repay his loans, reported Informacion on Wednesday, September 6.

The onset of the pandemic further exacerbated his financial woes, as he found himself unemployed for a six-month period.

Desperate to meet his basic needs, he resorted to taking on additional loans, plunging him deeper into debt. It was at this time that he sought assistance from Repara tu Deuda Lawyers, a law firm specialising in matters relating to the Second Chance Law.

Represented by this legal team, he made an appeal for the cancellation of his overwhelming debt.

The law firm, renowned for its expertise in navigating the complexities of this legislation, successfully secured a favourable ruling for their client.

The Alicante Commercial Court 2 granted him the coveted Benefit of Exoneration of Unsatisfied Liabilities (BEPI), offering him a much-needed lifeline out of his financial downward spiral.

This case underscores the compassionate approach that the Second Chance Law can bring to individuals who find themselves snared in financial distress. The Second Chance Law was approved by Parliament in 2015.