The recent decision of the Court of Justice of the European Union (CJEU), issued on November 7, 2024, has sparked a deep debate in the legal field, especially regarding the Second Chance Law that will come into effect in 2025. This ruling allows Member States to establish restrictions on the discharge of debts with the Tax Agency, which has been meticulously analyzed by experts from the Atalanta Law Firm.
An essential aspect highlighted by jurists is the emphasis of the ruling on the “good faith” of the debtor as an essential criterion to access the discharge of debts. The European Directive, supported by the CJEU, states that not only debtors considered “dishonest” could be excluded from this measure, but also those who have committed significant negligence in the management of their finances. This implies that, even without intent, a debtor could face sanctions if they have shown notable neglect, such as not foreseeing their payment obligations.
In addition, the CJEU has expanded the list of exceptions in the discharge of debts. According to Directive (EU) 2019/1023, States have the power to define and justify which categories of debts can be excluded from this discharge, including public law debts, as long as the principle of proportionality is respected. In Spain, the insolvency legislation already contemplates the exclusion of certain public debts from this measure, justified by a legitimate public interest, aiming to maintain an equitable and solidary society.
The ruling emphasizes the obligation of States to justify any restriction under the principle of proportionality. This means that disproportionate limitations should not be imposed and that exceptions must correspond to a legitimate public interest.
The CJEU’s ruling gives countries, including Spain, greater authority to establish restrictions on the discharge of debts under the Second Chance Law of 2025, especially regarding public debts. The measure highlights the importance of transparency and diligence towards debtors, directly impacting those with pending tax obligations.
Referrer: MiMub in Spanish
