Second Chance Law and Social Security debts: latest changes

The Civil Chamber of the Spanish Supreme Court (TS) has established case law on several key issues concerning the Second Chance mechanism and the discharge of unsatisfied liabilities (EPI) in insolvency proceedings for individuals.

With these rulings, dated 18 February, the Court clarifies the concept of a debtor in good faith, the scope of the exception in Article 478.1.2º of the Consolidated Insolvency Act (TRLC) for tax penalties, and several unresolved questions on public-law claims (which debts are affected, whether subordinated claims can be discharged and the maximum amount that can be written off).