The commercial section of the Court of First Instance of Lleida has exonerated a debt of 268,007.44 euros to a couple from the demarcation in application of the Second Chance Law. The judicial resolution closes a situation of insolvency that had lasted for more than 15 years.
The origin of the economic difficulties dates back to a fruit campaign affected by frosts. The couple did not have insurance to cover the damages and, furthermore, saw how the value of their production fell with the arrival of new varieties to the market.
A failed campaign and several loans to move forward
According to the version of those affected, they sold the production to a buyer with several fruit shops in Barcelona. Always according to their account, that commercial decision prevented them from exporting, unlike other farmers integrated into a cooperative.
To maintain the activity and face the following campaigns, the couple requested several loans. With the passage of time, the interests accumulated until turning the installments into unmanageable.
Justice applies the second chance
The court has agreed to the exoneration of the debt within the mechanism provided by the Second Chance Law. The resolution frees the couple from a debt exceeding 268,000 euros after the judicial process covered by this regulation.
The couple's lawyer, Marta Bergadà, maintains that this case reflects the situation that other professionals in the primary sector are going through.
"Farmers must be protected by legal instruments that allow them to move forward when they find themselves in extreme situations" - Marta Bergadà, lawyer
A case that points to structural problems of the primary sector
According to the information provided by the lawyer, behind many insolvencies in this field appear factors such as meteorological adversities, high production costs, and reduced profit margins.
The judicial decision puts an end to an insolvency process prolonged for a decade and a half and nullifies a debt that had originated after the progressive deterioration of the couple's agricultural activity in the Lleida demarcation.