Individuals Contest, second chance and entrepreneurial law

abogado valencia concurso de personas fisicas segunda oportunidad y ley de emprendedores

Individuals Contest, second chance and entrepreneurial law

 

In this post, I will discuss some ideas on the individuals contest, the second chance and the law of entrepreneurs.

The individuals contest, is a tool that has a limited utility. On contest, mortgagees do not enter (which are usually the main) and end of the contest, if you can not pay all debts, assets are liquidated can and society dies. But in the case of individuals unable to extinguish (thank goodness!!), remain outstanding debts: The debtor is left with nothing, but also, continues keeping your debts. In Spanish law under Article 1911 the Codigo Civil, the debtor is liable with all their present and future. If creditors continue to call the debt to avoid prescribing (most contractual debts prescribe after 15 years old) we find the following picture: a small business owner the autonomous, that may not have anything or probably hire anything in the rest of your life. That person has been excluded from society: life imprisonment. There is a drama, that often ends badly. However, possible, This independent, or small business, has not been to blame for the situation. Nonetheless, the system has been condemned to marginalization.

 

In Sites of our environment, as Germany, France United States, the state establishes mechanisms to forgive part of the debt: If it is found that in insolvency has not been bad faith or fraud, is forgiven the debt not covered by the assets of the debtor, and so, may from scratch to have a "second chance".

 

In Spain, This problem is known, but no solution has been given yet. It is envisaged that the Draft bill of entrepreneurs are trying to solve this situation. It would create a bankruptcy aimed at individuals or small entrepreneurs, much quicker and cheaper than the current (which has an average cost around 18.000 euros). The new competition, have two phases:

 

  • The first phase with mediator, to attempt a repayment plan and a haircut.

 

  • If this does not work, would move into a phase in which court Judge determine the acquittals of debt, allowing the debtor a second chance. Course, provided that no fraud appreciate. The take away would be on ordinary loans (no privileged or mortgage on). It would not be necessary to appoint a trustee in bankruptcy, getting cheaper system.

 

It would allow small businesses to avoid being burdened with unsecured debts or credits arising from guarantees.

 

The goal is for the small business that things went wrong, without being fraudulent, can be given a second chance and not be condemned for life to be an outcast. In Spain it takes entrepreneurs who create jobs to get out of the current situation.

 

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