Thursday, 22 February 2024
BusinessBankruptcy proceedings quadruple among the self-employed in two years due to the...

Bankruptcy proceedings quadruple among the self-employed in two years due to the second chance law

Bankruptcy proceedings quadrupled among the self-employed from 2020 to 2022, reaching 4,006, “mainly due to requests from the second chance mechanism,” according to the General Council of Economists (CGE). A mechanism to ‘eliminate’ or exonerate debts, according to different requirements, which was designed and approved in 2015 but which received a boost in 2021 with the reform of the Bankruptcy Law.

The data published this Wednesday by the CGE show that self-employed workers took advantage of 43.6% of all these processes for insolvent companies that occurred in Spain last year, 9,189 in total. These competitions establish the rules for the liquidation of a company, or the business of a self-employed person, in bankruptcy, who cannot continue with their activity and meet the expenses.

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