Chance Law: The benefit

Since the entry into force in 2015 of Royal Decree-Law 1/2015, oon a second chance mechanism, reduction of financial burden and other social measures, commonly known as the Second Chance Law , said decree It has represented a very useful tool for situations of serious debt or over-indebtedness, although today work continues on its reform to provide a better response. One of its most important objectives has been to allow those who have lost everything due to having liquidated their entire assets for the benefit of their creditors, to be freed from most of the outstanding debts after the end of the liquidation. , the key provision being Art.

Guarantors and spouse, exonerated?

178 bis of the Bankruptcy Law, introduced by the aforementioned Decree, which regulates the benefit of debt exemption. The natural person debtor may obtain such desired benefit, once the bankruptcy proceedingsncluded due to liquidation or due to insufficiency of the assets, including in the concept Philippines Number Data of exoneration of public law credits . Debtors in good faith who meet the requirements set out below, regulated in the third section of Art. 178 bis of the Bankruptcy Law, may benefit from it. Partial or total debt relief Thus, we find two systems of exoneration based on the doctrine of the Commercial Courts and Provincial Courts.

Benefit revocation

On the one hand, the definitive exoneration of the debt , which provides for the exoneration of all liabilities, including public credit, definitively, in cases in which the debtor in good faith has entered into, or at least attempted to enter into, a extrajudicial payment agreement and, having declared Philippines Phone Number List consecutive bankruptcy, has fully satisfied the claims against  the estate and the privileged bankruptcy claims. In the event of not meeting the requirement of having attempted a prior extrajudicial payment agreement, the requirement of satisfaction of at least 25% of the ordinary bankruptcy claims is added. On the other hand, there is the provisional exoneration ,

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