BackThe Defensora del Pueblo, Soledad Becerril, has presented in the Joint Committee for Relations with the Ombudsman the report “Economic crisis and personal insolvency: actions and propositions”, in which she asks for the establishment, in the Spanish legal system, of an independent insolvency proceeding, or second chance act, for individuals and over-indebted consumers acting in good faith.
The report advocates for creating a proceeding which achieves the conciliation of the interests of both creditors and debtors, facilitating the payment of debts and restoring the over-indebted domestic economy.
The Defensora del Pueblo recommends that such proceeding should be broad in its application so that debtors acting in good faith –whose wealth is unable to cover the set of debts which burden it– can have recourse to. The proceeding shall also be simple, effective and free of charge, either through a judicial or an administrative mechanism.
