A court in Cantabria cancels the debts of a married couple who went bankrupt during the pandemic.

The Court of First Instance No. 12 of the city of Santander has forgiven all outstanding debts of a married couple of the city that went bankrupt during the pandemic, which was close to 65,000 €.

From 2008 to 2019, the couple lived with financial peace of mind, as they had two stable salaries and permanent employment contracts. Banks and financial institutions offered them various loans and credit cards, which they agreed to take out.

The payments of these debts were current until their income was reduced by almost half between 2020 and 2021, coinciding with the crisis and restrictions by Covid.

During this period, the wife’s working hours were shortened after several months of ERTE and, on the other hand, the husband had to take sick leave for temporary disability, a situation that is still in force today.

This caused the first non-payments in 2020, which were followed by calls from the entities demanding the collection of the debt and even “threats of seizure”, which generated a situation of stress in the debtors who sought a solution to their insolvency, according to their lawyers.

At the beginning of 2021, they declared themselves insolvent and went through the so-called Second Chance Law process. However, the proposal presented to all the financial institutions was impossible to reach an agreement given the refusal to accept it, which meant that the debtors were entitled to 100% forgiveness of their debts.

Finally, the judge has exonerated them from the payment of the credits.

If you have any doubts regarding this issue, please do not hesitate to contact us, by telephone to Núria Martí García or by e-mail to nmg@btsasociados.com, we will be delighted to help you.