Discharge your debts
Discharge frees you from the debts you cannot pay.
Second Chance Law lawyers in Valencia
Everyone deserves a second chance. We help you legally cancel your debts while protecting your assets and, in most cases, your home.
05 — Second Chance Law
Stop thinking you failed to manage your finances. Not every debtor is to blame for their situation, and not every debt relief procedure ends in liquidation.
Protect your home
With a payment plan, you keep your family home in most cases.
Fees that fit
We adapt our fees to your situation and, in some cases, let you pay in instalments.
01 — What it is
What is the Second Chance Law?
It is the legal mechanism that allows individuals and the self-employed to cancel debts they cannot pay —known as the discharge of outstanding liabilities— so that nobody carries an impossible debt for life and everyone can start again.
The 2022 reform made it more accessible: an out-of-court payment agreement is no longer required first.
02 — Requirements
Who can apply?
- Natural persons: individuals and the self-employed.
- Debtors acting in good faith, with no convictions for certain economic offences and no recent serious penalties.
- With more debts than they can pay, or who expect soon to be unable to pay.
You do not need to have stopped paying already: it is enough to know that missed payments are coming soon.
03 — Routes
Two routes: payment plan or liquidation
Discharge with a payment plan
You keep your assets, including your family home, and commit to paying part of the debt over three years, or five if you keep your home. At the end, the rest is cancelled.
Discharge with liquidation
If you have no assets, or prefer not to keep them, your assets are sold and the remaining debts are cancelled.
04 — Afterwards
What changes once you apply?
A protective “bubble” is created: creditors stop calling you, seizures are halted and, at the end, you can return to normal life and apply for credit again.
Some debts, such as child maintenance or fines, cannot be cancelled, and debts owed to the tax authorities and Social Security only up to certain limits.
How we work
One method for every case: listen, understand the numbers and choose the route that protects what you have built.
- 01
First conversation
We listen to your story, without judgement.
- 02
Debt review
We map your debts, income and assets to choose the best route.
- 03
Court application
We prepare and file the whole application.
- 04
Discharge
We stay with you until your debts are cancelled.
FAQ
Frequently asked questions
Can’t find your question? In a first conversation, free of charge, we answer your questions about your specific case.
The reform has shortened timescales: in the simplest cases, 3 to 5 months. It depends on the court and the route chosen.
It depends on the amount of debt and the debtor’s assets. We understand how vulnerable our clients are: we adapt our fees to each situation and, in some cases, offer payment in instalments.
You can, but it is not advisable. Experience shows that people with several debts, such as loans or payday credits, that leave them unable to live properly end up borrowing more, and the debt snowball keeps growing.
There is no set percentage: it is usually above 80–85%, because it depends on your income rather than on the debt itself. At Rodian Abogados we have obtained write-offs of up to 98.3%. No catch: the law allows it.
Not necessarily. Insolvency can be current or imminent: you do not need to have missed payments, just to be sure they are coming soon.
Absolutely. The aim is for someone who has had bad luck to rebuild their life and start again. Collection calls will stop and you will be able to apply for credit again.
No. Your day-to-day accounts are not taken over and your usual payments are not blocked, unless there is a clear risk of assets being hidden, which is rare.
Yes. Once you start the procedure a protective “bubble” is created and they can no longer call or harass you.
Thanks to the insolvency reform, you keep your family home in the vast majority of cases. Note that the mortgage attached to it also remains. Ask us about your case.
You may also be interested in
01 — AreaInsolvency proceedingsWe use insolvency proceedings to save businesses, not to close them.02 — AreaBusiness restructuringCreditor negotiations and restructuring plans before insolvency.06 — AreaLitigation and mediationWe defend your interests at the negotiating table and, if needed, in court.
Timing matters
Acting in time changes everything.
We tend to ask for help only when debts are already overwhelming. But acting early —before seizures, or before taking out new loans to pay off old ones— widens your options and shortens the road to a fresh start.