Requirements of the Second Chance Act for freelancers and entrepreneurs

My team of Legal Fix to evaluate these key points to determine your eligibility to cancel the debts of your business:

1. Insolvency current or imminent

This requirement is identical to that of private individuals and is the pillar of the law: you do not have liquidity to regularly pay the debts of your business or activity.

• What does it mean? The revenue generated by your activity (or the lack of them) are not sufficient to cover the living expenses plus the outstanding financial obligations.

We will show that the closure or economic hardship does not allow you to make up the payments.

2. Maximum debt and transparency

The law sets clear limits for the process to be applicable:

• Debt ceiling: Your total debt (including both professional as well as personal, as the mortgage if that is the case) cannot exceed eur 5 million.

• Without Applications Recent: You would not have used the procedure of the Second Chance act during the last 5 years.

3. Acting in good faith (Essential)

You must demonstrate that the cessation of your business or the debt was not intentional or fraudulent.

• Lack of Guilt: The Judge you should not declare “guilty” in the contest of creditors. The good faith is lost if, for example, have generated debts knowing that it was impossible to pay them or if you have acted with gross negligence.

• The absence of Convictions: You may not have been convicted of crimes socio-economic (including the related Finance or Social Security) in the previous 10 years.

We analyze your financial movements in detail to ensure that your dossier is compliant with the most strict “good faith” before the Judge.

A crucial point: debt Finance and Social Security

Important: With the current legislation, the Second Chance Act allows you to cancel up to £ 10,000 of the debt accumulated with Finance and 10.000€ with the Social Security. The rest of the public debt that are not discharged are included in a Payment Plan special.

What do you do now?

If you find yourself in a situation of insolvency, and you want to close this cycle of debt professionals to restart your activity or your economic life, the first step is to review your documents to ensure the compliance of the good faith.

Ask for your free consultation and we will give you a plan of legal action to clear for your business.