{"id":51782,"date":"2025-08-06T22:00:00","date_gmt":"2025-08-06T20:00:00","guid":{"rendered":"https:\/\/entretramites.com\/en\/?p=51782"},"modified":"2025-08-06T15:48:33","modified_gmt":"2025-08-06T13:48:33","slug":"apply-for-the-second-chance-law","status":"publish","type":"post","link":"https:\/\/entretramites.com\/en\/self-employed\/apply-for-the-second-chance-law","title":{"rendered":"How to Apply for the Second Chance Law in Spain\u00a0"},"content":{"rendered":"\n<p><strong>Struggling with debt as a freelancer or individual in Spain? Discover how to apply for the second chance law and legally cancel your debts.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What Is the Second Chance Law in Spain?<\/strong><\/h2>\n\n\n\n<p>The <strong>Second Chance Law<\/strong> is a legal mechanism that allows individuals and self-employed workers (aut\u00f3nomos) in Spain to cancel part or all of their personal debts if they are in a situation of insolvency and meet specific requirements.<\/p>\n\n\n\n<p>Created under Royal <a href=\"https:\/\/www.boe.es\/buscar\/act.php?lang=en&amp;id=BOE-A-2015-8343&amp;tn=1&amp;p=\" rel=\"nofollow noopener\" target=\"_blank\"><strong>Decree-Law 1\/2015<\/strong><\/a> and reformed in 2022, this law helps those who cannot meet their financial obligations rebuild their lives without the burden of unpayable debt.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Who Can Apply for the Second Chance Law in 2025?<\/strong><\/h2>\n\n\n\n<p>To be eligible for the Second Chance Law, you must meet the following criteria:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Be a <strong>natural person<\/strong> (individual or self-employed).<br><\/li>\n\n\n\n<li>Be <strong>insolvent<\/strong>, either currently or imminently, with no ability to pay your debts.<br><\/li>\n\n\n\n<li>Have <strong>acted in good faith<\/strong> throughout the process (e.g., no hidden assets).<br><\/li>\n\n\n\n<li>Not have been convicted of economic or tax crimes in the last 10 years.<br><\/li>\n\n\n\n<li>Not have used the law in the last 5 years (without a payment plan), or the last 2 years (with a payment plan).<br><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How to Apply for the Second Chance Law: Step-by-Step<\/strong><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Evaluate Your Financial Situation<\/strong><\/h3>\n\n\n\n<p>Start by gathering all relevant documentation: debts, assets, income, contracts, and tax obligations. This allows you to prove your insolvency before the court.<\/p>\n\n\n\n<p><strong>Example<\/strong>: If you\u2019re self-employed with unpaid invoices, loans, and overdue taxes, gather those records to show financial hardship.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Contact a Specialist Lawyer or Gestor\u00eda<\/strong><\/h3>\n\n\n\n<p>While not legally required, working with a lawyer or fiscal advisor who specialises in <strong>how to apply for the second chance law<\/strong> can make the process smoother and reduce the risk of rejection due to errors. At Entre Tr\u00e1mites, we offer expert assistance tailored to freelancers and small businesses.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>File the Petition with the Court<\/strong><\/h3>\n\n\n\n<p>Since the 2022 reform, you no longer need to try an out-of-court settlement first. You can apply directly to the Commercial Court (Juzgado de lo Mercantil) in your province via a <strong>&#8220;no-asset procedure&#8221;<\/strong> if you don\u2019t have valuable assets.<\/p>\n\n\n\n<p>Your application should include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Inventory of assets and rights<br><\/li>\n\n\n\n<li>List of creditors and debts<br><\/li>\n\n\n\n<li>Proof of insolvency<br><\/li>\n\n\n\n<li>Request for debt cancellation (with or without a payment plan)<br><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Court Review and Start of Procedure<\/strong><\/h3>\n\n\n\n<p>The court will review your documents to decide whether to initiate proceedings. If you have no assets, the <strong>no-asset process<\/strong> begins, potentially leading straight to debt cancellation.<\/p>\n\n\n\n<p>If you do have assets or propose a payment plan, a standard bankruptcy process will begin.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Debt Cancellation (EPI &#8211; Exoneration of Unsatisfied Liabilities)<\/strong><\/h3>\n\n\n\n<p>At the end of the process, if all conditions are met, the court may approve cancellation of your debts. This cancellation can be:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>With a payment plan<\/strong>: pay part of your debt over 3\u20135 years.<br><\/li>\n\n\n\n<li><strong>Without a payment plan<\/strong>: if you have no income or assets to offer.<br><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Which Debts Can Be Cancelled?<\/strong><\/h2>\n\n\n\n<p>Most common debts can be discharged, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Bank loans and credit card debt<br><\/li>\n\n\n\n<li>Supplier invoices and business-related liabilities<br><\/li>\n\n\n\n<li>Overdue rent or private loans<br><\/li>\n<\/ul>\n\n\n\n<p>Since 2022, up to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u20ac10,000 from the Tax Agency (Hacienda)<br><\/li>\n\n\n\n<li>\u20ac10,000 from Social Security<br><\/li>\n<\/ul>\n\n\n\n<p>\u2026can also be cancelled. Amounts exceeding these limits must be managed through a payment plan.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>How Long Does the Process Take?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>No-asset procedures<\/strong>: 6\u20139 months<br><\/li>\n\n\n\n<li><strong>With assets or payment plan<\/strong>: 12\u201318 months or longer, depending on complexity<br><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>FAQs About How to Apply for the Second Chance Law<\/strong><\/h2>\n\n\n\n<p><strong>Can I cancel debts with Hacienda or Social Security?<\/strong><strong><br><\/strong> Yes, up to \u20ac10,000 each can be discharged. Remaining debt must be paid in instalments.<\/p>\n\n\n\n<p><strong>Will this affect my credit history?<\/strong><strong><br><\/strong> Yes, your name will appear in credit default lists, but you can request removal once the cancellation is approved by the judge.<\/p>\n\n\n\n<p><strong>What if I don\u2019t meet my payment plan?<\/strong><strong><br><\/strong> Failure to comply can lead to the cancellation being revoked. Staying on track is essential to keep your discharge active.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Start Fresh and Leave Debt Behind<\/strong><\/h2>\n\n\n\n<p>Knowing <strong>how to apply for the second chance law<\/strong> in Spain can be life-changing. With the right support, documentation, and legal approach, you can free yourself from overwhelming debt and start over \u2014 legally and securely.At Entre Tr\u00e1mites, we help aut\u00f3nomos and individuals through the process, from legal advice to document preparation and court filings. You can also contact us directly through this<a href=\"https:\/\/entretramites.com\/en\/contact\"> <strong>contact Form<\/strong><\/a> for us to call you, or if you prefer, you can<a href=\"https:\/\/entretramites.com\/en\/consultancy\/free-tax-consultation\"> <strong>schedule a free consultation<\/strong><\/a> or write to us on<a href=\"https:\/\/api.whatsapp.com\/send\/?phone=34644034481&amp;text=Hola%21+Quisiera+saber+m%C3%A1s+sobre+sus+servicios&amp;type=phone_number&amp;app_absent=0\" rel=\"nofollow noopener\" target=\"_blank\"> <strong>WhatsApp<\/strong><\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Learn how to apply for the second chance law in Spain and cancel personal debts legally. Step-by-step guide for aut\u00f3nomos and individuals.<\/p>\n","protected":false},"author":25,"featured_media":51783,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[192],"tags":[],"class_list":["post-51782","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-self-employed"],"acf":[],"_links":{"self":[{"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/posts\/51782","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/comments?post=51782"}],"version-history":[{"count":2,"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/posts\/51782\/revisions"}],"predecessor-version":[{"id":51785,"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/posts\/51782\/revisions\/51785"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/media\/51783"}],"wp:attachment":[{"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/media?parent=51782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/categories?post=51782"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/entretramites.com\/en\/wp-json\/wp\/v2\/tags?post=51782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}