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El blog de Maria

Your daily Spanish Law reporter. Have it with a cafe con leche. www.costaluzlawyers.es

Legal tip 554. Debt reductions by Courts
29 June 2011 @ 10:28

Colleague Carlos Guerrero posted today in his blog a real case about a successful creditor´s meeting procedure for an individual which has ended with an anticipated agreement proposal

According to Carlos Guerrero the quickest way to make an individual´s creditors meeting a successful event is through the approval of an anticipated creditor´s meeting agreement. It is an agreement that you reach with most of your creditors in order to bring new deadlines to the repayment of your debts, without interests and even with some writing off of debt.

In the case that Carlos Guerrero has recently won, he obtained writing off of 50% of the debt and a postponing of 5 years for the repayment of the remaining.

Conditions of the agreement

Debt before the creditor´s meeting: 10,3441. 75 € in personal loans and credit cards

Cost of the procedure: 4000 € for Lawyer and 500 € for Court agent

Habitual home: The debtor kept paying mortgage installments along the procedure

Saving obtained: 51720, 87€

Banks which have accepted the debtor´s proposal: Carrefour financiera, Citibank, MBNA, Banco Cetelem and Santander Consumer

Banks which have been forced to accept it: BBVA and La Caixa

Length of the procedure: 5 months

La Barrosa beach, Chiclana by Alfonso Jiménez at Flickr.com 



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1 Comments


Doedoe said:
30 June 2011 @ 11:40

Hi Maria,
I enjoy your page's through Eye On Spain and find them very helpful.
This one however I have concern's about because as you know thousands of people are in debt with their community over non payment of Community fees.
Our Community has just 11 owners that are fully paid up members out of the 44 apartments. The Bank & Builder/Architect own 26 some of which are let to residents, the balance are own by nationals? Up to this time our fees have been €60 a month, all the non payers, some being resident have had their utility bills paid through the community. At the AGM two weeks ago, it was decided that the Community fees should be increased to €80 a month, to enable some of the work the builder has not completed to be done.
Four years ago the Builder reported the complex complete, claiming back the monies held by the local government to pay for the work needed if not completed. The local council have not granting the Habitation Certificate, the reason is that the Road, Utility Meters and many other items like surface water drains are still unfinished.
Where will the community funds stand if the non payers have their debts reduced, they have already had all the utilities paid, many individual apartments have debts to the community of 3.5k, if paid would provide the fund to complete all the work that needed.
Many of the residents have Cars, Drink, Smoke and have some sort of income. The Facilities they enjoy in the community include the Swimming Pool & cleaning contract to keep the communal areas clean. Most of the 11 fully paid up owners live in the UK, some of which do not have the funds to hire a car and enjoy Spain as they are paying the fees to keep their investment in good condition.
Spending very short periods, a couple of times a year in their apartments.





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