Deudafix Reparadora Legal Group is a legal services company with headquarters in Alcobendas, Madrid. It provides legal advice and services to Spanish consumers who seek a reduction or removal of debts under the provisions of the Second Chance Law. Founded by CEO Pedro Javier Martinez, Deudafix’s company name is an amalgamation of the Spanish word for “debt” (deuda) and the English language word “fix” which has become a frequently used expression in Spanish day to day language. Deudafix is one a many new legal service companies combining fintech automation type technology with standard legal practice to seek to streamline and speed up Spanish legal processes, and in particular Second Chance Law.
Spanish Second Chance Law has been in effect for a number of years, permitting entrepreneurs with less than €5m of debt to seek to write off those debts and start again, to have a second chance. There are varied provisions around “good faith”, which clarify that the entrepreneur cannot have wilfully incurred the position of indebtedness through gross negligence.
From 2017, as socialist government parties gained power, the Law of Second Chance has been extended to apply to private individuals whether they are entrepreneurs, self, employed, employed or unemployed. While a Spanish citizen may now seek shelter under the Second Chance Law for a non defined amount, it is generally advised by legal services firms such as Deudafix that dents of €15,000 and above are required to proceed with the process.
While the Spanish economy suffered a sharp recession in 2007-2008 as a part of a global crisis, the economy had seen a strong recovery and reduction in overall unemployment rates up to end of 2017.
Underlying poverty in the South of Spain remains amongst the worst in Europe and aligned with the over extending of household credit in the major conurbations of Barcelona and Madrid, drives levels of insolvency comparable with the UK and Germany.
The timing of the extension of the Second Chance Law to meet this rising personal insolvency issue, is in keeping with similar laws and protections offered by the UK’s Insolvency Law. Similarly the timing of the arrival of legal services firms such as Deudafix to raise social awareness of the availability of such protections, mirrors or follows the growth in insolvency practitioners in the United Kingdom.