Malaga court absolves couple's debt of more than two million euros after their business went bust

The economic crisis of 2008 was the start of the downfall for a family business in the agri-food sector. Nearly two decades later, the couple were living in a situation where they owed more than two and a half million euros in debts. Finally, a Malaga court has exonerated them from paying the debts they owed, which will allow them to start a new life free of burden.

The couple has been granted a pardon under Spain's 'second chance' law. The total liabilities exonerated to the debtors, represented by lawyer Eugenio Luque was 2,621,084 euros.

The couple's business dedicated to the breeding and production of Iberian pork experienced a drop in consumption and a rise in the price of raw materials during the 2008 crisis. The pair were personal guarantors of the business, which they couldn't save despite the loans. They ended up in a state of total insolvency and subsequently lost their family home.

This situation was brought to the attention of the court, which declared the couple insolvent under a no-asset bankruptcy - that is, the company's insolvency and the absence of assets to cover the debts were confirmed. Following this, through their legal representative, the couple requested a discharge of their unsatisfied debts, which was ultimately granted without any opposition from the creditors.

The magistrate granted the couple debt forgiveness after proving that both met the requirements of a 'bona fide' debtor, which include no convictions for economic crimes or concealment of assets or information.

With the exception of 103,813 euros, which they will have to pay to the state Treasury, and another 6,040 euros from the Andalusian tax authorities, they have been exonerated from the rest of the loans and credits contracted, which have been completely extinguished. In accordance with this resolution, the creditors will also have to update their registers of defaulters so that they do not appear as debtors.