According to our Minister of Economy Cristóbal Montoro, the Spanish economy is growing and coming out of that state of depression that accompanies us.
Is this true?
Spanish families in bankruptcy double compared to previous years.
Are families also emerging from the crisis?
The Current Economic Outlook
Every day data and statistics rain down on us, a politician provides an economic data and then an "expert" economist, a journalist or a colleague presents another piece of information that takes away all reason.
It's the same old war, everyone wants to be right and we incredulously attend a great dance of alarming numbers, statistics and information, which we cannot analyze because no one has taught us a little basic economics.
To understand a bit all this maelstrom of data, we are going to focus on a series of very simple concepts, which will allow us to analyze on our own how the current situation is.
The 7.10% deficit of GDP (gross domestic product) in 2013 indicates that Spain has spent € 72,577 more than it has entered (we are wasteful).
The employment that is created is very scarce and of low quality, the unemployment rate continues at 25%.
Income falls and poverty increases, wages are lower and lower, taxes increase and this causes consumption to fall drastically.
People only earn to pay off debts and survive.
This translates to the following:
If the Spanish state spends more than it enters, out of every hundred people of working age twenty-five are unemployed, and those who are working only earn to survive or poorly live, that we are coming out of the crisis will be a joke
Right, Mr. Montoro?
These are very simple data to understand, to see at a glance that the Spanish economy is neither doing so well nor is it expected.
Given this scenario, what future does it have for families with financial difficulties?
The bankruptcies of Spanish families
The situations that can be experienced in a family in times of crisis are very hard, from not being able to pay the electricity bill, to the mortgage receipt.
In these situations, a ball is formed that grows little by little until finally a family bankruptcy occurs.
At the expense of the end of this year 2014 and a new count is made, the latest data we have of families that filed for bankruptcy (suspension of payments and bankruptcies) due to the impossibility of facing their payments and debts, increased by 15% compared to to 2012.
Family bankruptcy as a figure, was born with the intention of offering individuals a possibility to negotiate their debts.
By doing so, payments are interrupted, interest on outstanding debt and executions in progress (if any) are paralyzed, it makes it possible to negotiate a debt reduction of up to 50%, and allows up to five years of postponement.
All these conditions of paralysis of debt and negotiation of the same are based on the bankruptcy law of 2004 , in which companies and families have the possibility of declaring bankruptcy.
From what we see, the outlook does not seem very encouraging and according to the latest OECD recommendations to the government of Spain, "continue with the improvement of judicial insolvency procedures", makes it clear that the situation of family bankruptcy is going to be more common than we are. We think, when you see your neighbor's beard cut, put yours to soak.
Filing a Family Bankruptcy
A family bankruptcy declaration is a viable procedure when a family with their basic income can pay the mortgage or the rent of the house, but cannot pay personal loans or credit cards contracted with financial institutions.
With the declaration of bankruptcy, the interests of these loans and cards are paralyzed, and they cannot file a lawsuit in the Court.
This allows us to take a break with our family debt and propose a comfortable form of payment.
The procedure to carry out a family bankruptcy process begins with the filing of a claim to the Court by the family, for this we must have the participation of a lawyer and a solicitor
It must be borne in mind that even though we have submitted this request for insolvency, in the Court, we still cannot paralyze the interests, the claims or the executions in progress, until the Court admits the claim for processing and the Declaration of insolvency is produced by means of a judicial order.
When the Court admits the bankruptcy proceedings, calm will arrive after the storm, threatening calls disappear, those letters that were not precisely congratulatory do not reach your mailbox, an expert in bankruptcy procedures negotiates between creditors and your lawyer (let them eat the brown one).
The “Big Brother”: The Insolvency Administrator
The bankruptcy administrator will intervene the state of the family's bank accounts and will make a report to present it to the judge and declare the debt we have, as well as agreeing a monthly payment with the family for basic daily expenses called "food rights".
The "right to food" in "theory" covers everything necessary to survive, the payment of the mortgage / rent, food, clothes, education, taxes, it will be our "big brother" who will control us and take us back for good. path.
As a solution, everyone goes bankrupt
Attention, all this explanation that I am giving you seems the panacea and the solution to all the problems, but all that glitters is not gold.
Filing for bankruptcy is not always the best solution to your problems and above all to the main problem, it does not paralyze the ongoing foreclosure of a mortgage.
The current bankruptcy law of 2004 has not fulfilled its purpose in this area in the event of a possible non-payment of the mortgage, as every law has its loopholes and in 2004 the problem of evictions was not as serious as it is today .
Do you remember that there were a couple of characters in this story, Lawyer and Attorney? Well, these gentlemen charge and of course this can be a problem in fact, most of the time the problem is called € 6,000 (they are usually expensive).
In a trial of the type that is the one who wins, it is always the lawyers, the attorneys and the judges, if you add to this that the judicial procedures are usually quite slow you will realize that this process is not the ideal formula for families and is designed mostly for businesses.
The Final Solution
Grab the pasta and go to another country.
What advice I give, not now seriously. The first thing you have to fight for is to pay the mortgage, which is what could harm you the most.
Loans in most cases you can negotiate with the creditor, they will be more interested in being legally executed since if you have a mortgage on your house they will not be able to seize anything (by proxy they can but they will not be interested in insurance).
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