The Judgment that opens the door to the real exoneration of all debts in self-employed

The Supreme Court establishes that commercial courts may act on public debts contracted by the self-employed.

The National Federation of Autonomous Workers’ Associations (ATA) has requested a reform of the Second Chance Act. ATA wants that it includes the inclusion of debts with the Treasury and Social Security. That is, public credits, as established in a judgment of the Supreme Court.

The ruling, dating from July 2, indicates that the commercial courts can act on the debts that have been contracted with the Tax Agency and Social Security. Everything arises as a result of a sentence of the Provincial Court of Palma de Mallorca on a person who had accepted the Second Chance Act.

According to this ruling, the commercial courts could decide on whether they waived the obligation to pay the public credit granted and if the debtor was forgiven more than half of the debt he had with the public administration. In turn, the ruling also opened the door for the rest of the debt could be paid fractionally until the next five years.

Since 2015

The National Federation of Autonomous Workers Associations (ATA) had been requesting conclusions similar to those of this ruling since 2015, the date on which the Second Chance Act was approved. ATA claimed that the debtor could pay in a fractioned manner the payment of interest and sanctions contracted with the Administration.

In this sense, after hearing the ruling of the Supreme Court, the Association reminds that in this way are the courts that can exonerate up to 70% of debts that have been incurred both with the Treasury and Social Security. And decide, therefore, how much payments are split.

According to its president, who claims that the Law be corrected to include this detail in it, “the Supreme Court had to come to say what we have been saying since ATA, that there could not be a Second Chance Law without including the public credits, which are what really sink the self-employed “.