The Second Opportunity Law (LSO) approved in 2015, has helped individuals and professionals to get out of delicate situations by applying reductions or renegotiating the payment of their contracted debts. And what often seems impossible, it is not. Thanks to this regulation, a family of Argentine origin who came to Spain to seek a better economic situation and opted for entrepreneurship managed to get rid of a debt of 65,000 euros derived from the start-up of a precooked food business.
In 2015, the woman, with the occasional help of her husband, decided to start a small precooked food business to find a new way to generate income and earn a living. However, three years later the entrepreneur was diagnosed with fibromyalgia and did not stop being able to cook, which was the basis of the business. This mishap meant that the woman had to close her small shop without being able to pay the 65,000 euro debt she had contracted.
Some time later, the entrepreneur decided to go to the services of Lexben Advocats to benefit from the Second Chance Law. “First the mother came and explained to me that she had had a business selling pre-cooked food and that it did not work out for her and that the loans remained unpaid, once she trusted me she told me that her husband was also guaranteeing the same loans and that also wanted to welcome. His debt, except for some cards, was practically the same as hers, ”explains the lawyer in charge of the case, who also clarifies that the couple prefers not to reveal her identities.
After studying the situation and verifying that both met the requirements of the Second Chance Law - which are summarized in that the debt does not exceed 5 million euros, being a debtor in good faith, not having a criminal record in crimes against property , not having agreed to this procedure in the last ten years and having tried an out-of-court payment agreement - the judicial process was launched.
In January 2020, before the start of the pandemic, the law firm filed the pertinent appeal so that the couple could avail themselves of this Second Chance Law and only a few months later, in June 2021, the 100% exoneration was obtained. %. This allowed the couple, who had to close their small business for health reasons, to be exempt from having to return those 65,000 euros in order to move on with their lives. Currently they continue to work in Spain, but as an employee.
Entrepreneurship in Spain can be riskier than in other countries due to regulations, but the Second Chance mechanism is allowing small entrepreneurs to launch into the world of business with minimal guarantees. “In the end, these types of laws are what make an entrepreneur jump into the void: knowing that if everything goes the other way than you had planned, there is a way out that will not ruin you for life.”
"Everyone knows -continues the lawyer- that to start a business you have to go into debt, and that is not the problem, the problem is that you can never take that slab off. With this law, in the worst case scenario, you can remake yourself and start a new business or, if applicable, work as an employee without paying for your 'adventure' all your life”.
It should be noted that the case of this marriage is by no means an isolated event. Without going any further, thanks to this regulation, the daughter of this marriage, along with her boyfriend, were also able to take advantage of this Second Chance Law after a failed project when opening a greengrocer.
