Because of the law of second chances, bankruptcy proceedings among the self-employed quadruple in two years

According to the Council General of Economists (CGE), bankruptcy filings among the self-employed quadrupled from 2020 to 2022 to 4,006, “largely due to demand for second chance mechanisms”. A mechanism for “writing off” or discharging debts under various requirements, which was created and approved in 2015, but strengthened from 2021 by the reform of the bankruptcy law.

Data published this Wednesday by the CGE show that self-employed workers benefited from 43.6% of all these proceedings for insolvent companies that took place in Spain last year, a total of 9,189. These competitions establish the procedure for liquidation of a bankrupt company or a self-employed person who is unable to continue his activities and incur expenses.

Source: El Diario





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