Cancel Your Debts in Spain with the Second Chance Law
Spain's Second Chance Law (Ley de Segunda Oportunidad) allows individuals — including foreign residents — to legally cancel 100% of their debts. English-speaking lawyers in Las Palmas.
100%
Debts eligible for cancellation
6–18 months
Typical process duration
4.8 ★ · 217
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Who is this for?
The Second Chance Law is available to any individual with legal residency in Spain, regardless of nationality.
Expats struggling with loans or credit cards
Foreign residents in Spain who can no longer meet repayments on personal loans, credit cards or consumer finance debts.
Self-employed foreigners with AEAT debts
Autónomos of foreign nationality who have outstanding debts to the Spanish Tax Agency (AEAT) or Social Security.
EU citizens over-indebted in Spain
EU nationals who relocated to Spain and accumulated debts that have become unmanageable due to changes in income or circumstances.
UK nationals in the Canary Islands
British residents in Gran Canaria, Tenerife or other islands facing unmanageable debt following Brexit-related residency changes.
Non-EU residents with legal residency
Non-EU nationals who hold a valid residency permit in Spain and meet the good faith and insolvency requirements of Law 25/2015.
Second Chance Law vs doing nothing
Understand the real difference between taking action and waiting.
| Second Chance Law | Doing Nothing | |
|---|---|---|
| Debt outcome | 100% cancelled | Keeps growing (interest + penalties) |
| Wage garnishment | Stopped immediately | Can continue indefinitely |
| Peace of mind | Full fresh start | Ongoing stress and pressure |
| Credit future | Clean slate after process | Permanent listings in AECI/RAI |
| Duration | 6–18 months | Indefinite |
| Cost | Fixed fee — no hidden costs | Growing debt forever |
How the process works
Four clear steps from your first consultation to a clean financial slate.
Free consultation
We assess your debts, residency status and eligibility under Spanish law — at no cost to you.
Document preparation
We handle all paperwork in English; no Spanish required from you. We gather creditor lists, tax certificates and financial statements.
Court filing
We submit the application to the Las Palmas court and immediately suspend all active debt executions and garnishments.
Debt discharge
The judge grants the exoneration order; you start fresh with a clean financial slate and no remaining liability.
Frequently asked questions
Can foreigners living in Spain use the Second Chance Law?+
Yes. Any individual — Spanish national or foreign resident — who has legal residency in Spain and meets the requirements can apply for debt cancellation under the Ley de Segunda Oportunidad (Law 25/2015, as amended by Law 16/2022). Your nationality is irrelevant; what matters is your residency status and financial situation.
What debts can be cancelled?+
Personal loans, credit cards, bank debts, debts to the Spanish Tax Agency (AEAT), Social Security debts, utility bills, and most unsecured private debts. Certain debts such as alimony and very recent tax debts are subject to specific limits, but even these can be partially reduced. We provide a full breakdown of your specific debts in the free consultation.
Do I need to speak Spanish to apply?+
No. Our team handles the entire process in English. You will need a NIE number and legal residency in Spain, but all communication with us — and all document explanations — can be conducted entirely in English.
How long does the process take?+
Typically 6 to 18 months from start to the judge's discharge order, depending on the complexity of your case, the number of creditors and the workload of the Las Palmas court at the time of filing.
Will I lose my home if I apply?+
Not necessarily. If you have a mortgage and continue making your mortgage payments, you may be able to keep your home. The Second Chance Law primarily addresses unsecured debts. Your specific situation — including equity, arrears and whether your mortgage is in default — determines the outcome. We assess this in the free consultation.
How much does it cost?+
We offer a fixed fee with no hidden costs. The exact amount depends on the complexity of your case — primarily the number of creditors and total debt. Contact us for a personalised quote after the free consultation. There are no fees unless we take your case.
Get your free consultation
Tell us about your situation. We will assess your eligibility for the Second Chance Law and explain your options — entirely in English, at no cost.