The 2008 economic crisis continues to leave economic and personal scars on former workers in the Canary Islands' tourism sector. The presiding judge of Court Number 1 of the Commercial Section of the Lleida Court of First Instance has issued an order forgiving a debt of €35.656,95 for a citizen who had been burdened with excessive mortgage debt since the years of the housing bubble. The discharge of the outstanding debt was achieved through the application of the Second Chance Law, processed by the boutique law firm Bergadà Abogados.
The genesis of this prolonged financial ordeal dates back to the early 2000s, a period in which the affected party resided in the southern municipality of Mogán, working in the hospitality sector. In 2004, with a permanent contract and stable employment, he decided to purchase an apartment, encouraged by those around him. The transaction was formalized through a variable-rate mortgage with initially acceptable terms, supported by a real estate market where prices were inflated due to strong demand.
The situation changed drastically with the financial crisis. Mortgage payments skyrocketed once the initial interest-free period ended, coinciding with a severe collapse in tourism in southern Gran Canaria. The hotel where the affected man worked went from receiving around 2.000 guests a day to barely a hundred, which led to his dismissal.
Unable to sell the property due to market devaluation or to rent it below maintenance costs, the debtor opted to emigrate to the United Kingdom in search of opportunities. His efforts proved fruitless, and in 2009, the property was foreclosed upon. However, the loss of the property did not settle the financial obligation, as the court-ordered appraisal was lower than the principal amount, and the bank demanded payment of the difference.
The pursuit of the outstanding balance dragged on for more than fifteen years, causing significant damage to the mental health of the affected individual, who suffered episodes of severe depression and social isolation due to constant fear of the creditor's demands. Marta Bergadà, founding partner of the law firm that handled the case, emphasized to Maspalomas24H that this type of debtor acting in good faith often carries a deep sense of guilt that hinders their personal recovery.
The escape route opened approximately a year ago thanks to the intervention of his partner, who located information online about debt forgiveness mechanisms. After providing the required documentation to verify the client's good faith, the legal team initiated the commercial proceedings that culminated in the court's forgiveness of the outstanding €35.656,95. The resolution brings to a close more than two decades of financial hardship and opens a path to stability for the former employee from Gran Canaria.
