Second Chance Law

Before starting a Second Chance Law procedure, we assess whether you meet the eligibility requirements, which debts may be discharged, and the potential risks involved.

If you are an individual, self-employed, or a former self-employed professional, and debts, garnishments, or claims are preventing you from moving forward, the Second Chance Law may provide a legal pathway to reorganise your financial situation and, in certain cases, obtain a discharge of your debts.

At PEREZ DOMINGO, we assess your case on an individual basis before starting the process and guide you throughout every stage of the proceedings. We review your debts, income, creditors, property, assets, public debt, garnishments, and any potential risks to determine whether pursuing the procedure is the right option for you.

We do not promise automatic solutions. We provide a professional assessment so that you understand your options and can make an informed decision about the next steps.

Before making any decisions, you need to know whether there is a viable solution for your case.

When someone accumulates debt, it is normal to feel overwhelmed: calls from creditors, garnishments, legal proceedings, concerns about losing income, or debts secured against their home can all create significant financial and emotional pressure.

The Second Chance Law may help you, but it should never be pursued without first assessing your financial and legal situation.

We assess your case, identify potential risks, and explain whether there is a realistic prospect of moving forward.

We help you determine whether the Second Chance Law is the right option for you.

At PEREZ DOMINGO, we never initiate legal proceedings without first carrying out a thorough assessment of your case.

Our role is to:

1

Organise your debts and creditors.

2

Review your loans, credit cards, finance agreements, microloans, and outstanding claims.

3

Review any garnishments, lawsuits, payment order proceedings, or enforcement actions.

4

Assess how tax and Social Security debts may be treated under the Second Chance Law.

5

Assess your home, mortgage, assets, and overall financial situation.

6

Review your circumstances whether you are an individual, self-employed, or a former self-employed professional.

7

Advise you on the implications for guarantors, sureties, or co-debtors.

8

Prepare a viability assessment of your case.

9

Guide you through the insolvency proceedings if your case is considered viable and our firm agrees to take it on.

We are not a high-volume claims platform. We are a law firm that carefully assesses your case and provides a personalised legal service.

The Second Chance Law can help transform your financial situation, but it must be approached and prepared correctly.

At PEREZ DOMINGO, we handle every case individually, applying a thorough, evidence-based approach with the highest standards of professional care.

Our approach is based on:

1. Initial Case Assessment

2. Document Review

3. Clear Legal Guidance

4. Viability Assessment

5. Proceedings Only Where There Is a Sufficient Legal Basis

6. Professional Guidance Throughout the Process

We can help you organise your debts with professional legal guidance.

This service is designed for:

1

Individuals with loans, credit card debt, microloans, or other bank debts.

2

Individuals facing garnishments affecting their salary, bank accounts, or assets.

3

Self-employed individuals or former self-employed professionals with debts arising from their business activities.

4

Individuals with tax or Social Security debt who need to understand their legal options.

5

Debtors facing payment order proceedings, enforcement actions, or other ongoing legal claims.

6

Individuals who are no longer able to manage their debt repayments in an orderly manner.

7

Individuals who want to find out whether they are eligible for the Second Chance Law before starting legal proceedings.

We work with clients who are committed to addressing their financial situation responsibly, providing the necessary documentation, and receiving clear, practical legal guidance.

The first important decision is not whether to start the process, but whether it is worth starting in the first place.

Which debts can be discharged?

Depending on your individual circumstances, the following types of debt may be eligible for discharge:

Personal loans from banks or other financial institutions.

Personal guarantees and other ordinary private debts.

Consumer loans and microloans.

Credit card debt, including revolving credit cards.

Bank overdrafts and outstanding debt on current accounts.

Outstanding invoices owed to suppliers.

Private loans between individuals.

Tax and Social Security debts (subject to the legal limits established under the Second Chance Law).

How Do We Work at PEREZ DOMINGO?

A straightforward, transparent, and fully supported process.

1. Initial Assessment

We gather the key information about your financial situation, including your debts, income, garnishments, property, tax and Social Security debt, and any urgent issues. This initial assessment does not constitute acceptance of your case by our firm.

2. Document Review

If your case appears suitable for further assessment, we will ask you to provide the necessary documentation so we can evaluate it properly. Without sufficient documentation, it is not possible to make a reliable assessment of your case's viability.

3. Viability Assessment

We review your financial, legal, and asset situation to determine whether it is appropriate to proceed. At this stage, we may identify potential risks, missing documentation, or other circumstances that suggest it would be advisable not to start the proceedings yet.

4. Clear Explanation of Your Options

We explain whether your case appears to be viable, whether there are any concerns or limitations, whether further documentation is required, or whether it is not advisable to proceed.

5. Insolvency Proceedings, Where Appropriate

The full insolvency proceedings will only begin if your case is considered viable, you decide to proceed, and our firm agrees to take on your case.

Frequently Asked Questions

Can All Debts Be Discharged?

Not always. It depends on the type of debt, your individual circumstances, and whether the legal requirements are met. That is why we assess your case carefully before taking any further steps.

What Happens to Tax and Social Security Debts?

Public debt, including tax and Social Security debt, is subject to specific legal rules and cannot always be fully discharged. Each case must be assessed individually.

Could I Lose My Home?

It depends on the value of your property, your mortgage, any existing charges or encumbrances, and the most appropriate legal route for your circumstances. It would not be appropriate to promise that you will keep your home without first carrying out a thorough assessment of your case.

Can I Apply for the Second Chance Law if I Am Self-Employed?

Yes. Self-employed individuals and former self-employed professionals may be eligible to apply under the Second Chance Law. However, it is essential to review business-related debts, tax and Social Security liabilities, assets, and the relevant financial and tax documentation before determining whether this is a suitable option.

What If I Have Garnishments or Ongoing Legal Proceedings?

Each legal proceeding must be reviewed individually, taking into account its current status and any urgent deadlines. Having garnishments or ongoing enforcement measures does not necessarily prevent your case from being assessed under the Second Chance Law.

Are Guarantors or Co-Debtors Also Released from Their Obligations?

The discharge of the debtor does not automatically release guarantors, sureties, or co-debtors from their obligations. This is an important issue that should be carefully assessed in each case.

Does the Initial Assessment Mean My Case Has Been Accepted?

No. The initial assessment is only preliminary. Acceptance of your case requires a review of the relevant documentation and confirmation that there is a reasonable legal basis for proceeding.

When Do the Proceedings Actually Begin?

The full proceedings begin once our firm has accepted your case, the engagement letter has been signed, and the agreed advance payment has been made.