Debt Cancellation
in Spain — for foreigners
Spain’s Second Chance Law (Ley de Segunda Oportunidad) lets natural persons cancel unpayable debts — bank loans, credit cards, Spanish tax debts, social security and personal guarantees — through a court procedure that ends with a judicial discharge of unpaid liabilities (EPI).
English-speaking lawyers based in Las Palmas de Gran Canaria. Serving clients across Spain remotely.
YES
Foreigners can apply
4-9mo
Without assets
95%
Success rate
In short
Spain’s Second Chance Law (Ley 25/2015, reformed 2022) lets any natural person — including foreigners with NIE — cancel debts to banks, credit cards, the Spanish Tax Authority (AEAT) and Social Security (TGSS). The procedure is filed before the Commercial Court and results in a judicial discharge order (Exoneración del Pasivo Insatisfecho — EPI). Typical cost: €1,500–2,500 for cases without assets. Typical timeline: 4-9 months. ALY Abogados handles the entire procedure remotely; you don’t need to travel to Spain.
When does this apply to you?
The Spanish Second Chance procedure may be the right tool for you if:
- You are tax-resident in Spain or have your main centre of economic interests in Spain.
- You have unpayable debts to Spanish banks, credit cards, the AEAT (Spanish Tax Authority) or TGSS (Social Security).
- You closed a Spanish business and ended up with personal liabilities, executed guarantees or commercial debts.
- You inherited Spanish debts and need to settle them legally.
- You are a digital nomad who became overcommitted on Spanish credit cards or loans.
- You have a Spanish mortgage in default and want to negotiate while protecting your situation.
The procedure step by step
- 1
Free consultation
Online assessment of your case. We confirm whether you meet the requirements and which debts are cancellable.
- 2
File preparation
We compile creditor list, debt evidence, asset inventory and proof of insolvency. Translated documents accepted.
- 3
Voluntary insolvency filing
We file the voluntary insolvency proceedings before the competent Spanish Commercial Court. All ongoing enforcement actions and bank account freezes are suspended.
- 4
Judicial discharge (EPI)
Once the procedure concludes, the court issues the discharge order cancelling unpaid debts. You can request removal from Spanish credit blacklists (ASNEF/RAI) afterwards.
Frequently asked questions
Can a foreigner use the Second Chance Law in Spain?
Yes. Spain’s Second Chance Law (Ley de Segunda Oportunidad, Law 25/2015 as amended in 2022) applies to any natural person — Spanish citizen, EU resident or non-EU citizen — who is insolvent and acts in good faith. The procedure is filed with the Spanish Commercial Court (Juzgado de lo Mercantil) where the debtor habitually resides or has the centre of their main economic interests.
What debts can be cancelled?
Bank loans, credit cards (including revolving), Spanish tax authority debts (AEAT), Spanish Social Security debts (TGSS), commercial debts, microloans, executed personal guarantees, and most administrative fines. Not cancellable: child maintenance, criminal fines, debts arising from criminal liability.
How long does the procedure take?
For debtors without assets to liquidate (no-mass procedure): 4-9 months from filing to discharge. For debtors with assets: 8-15 months including liquidation. The Commercial Courts of Las Palmas and Tenerife are slightly faster than mainland courts (Madrid, Barcelona).
Do I lose my home if I file for the Second Chance procedure?
Not necessarily. If the mortgage on your habitual residence is up to date with payments, the bank cannot enforce it during the procedure. You can negotiate restructuring of the mortgage or maintain the original terms. Investment properties or non-habitual second homes may be liquidated as part of the procedure.
How much does the procedure cost?
Total costs for the no-mass procedure (most foreign clients): €1,500-2,500 in legal fees plus minor court fees. For procedures with assets: €2,500-4,500. ALY Abogados offers fixed fees agreed in writing, payment plans, and result-based fees in cases without assets. First consultation is always free.
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English-speaking lawyer · ICALPA Bar nº 5.231 · Response within 24 hours
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