Fresh Start and Loan Market

56 Pages Posted: 1 Sep 2011

See all articles by Matilde Cuena Casas

Matilde Cuena Casas

Universidad Complutense de Madrid (UCM); Complutense University

Date Written: July 1, 2011


This paper assesses the credit market implications of the so-called “fresh start” or release of the outstanding liability to the debtor insolvent individual. The U.S. experience is highly revealing in this regard, since it has a long tradition and it constitutes the liberal model of recovery for the insolvent person as it provides an automatic debt relief. It values the impact of the limitation on the principle of unlimited liability on the credit costs and the entrepreneurship, as well as the mechanisms for obtaining the debtor's financial information. I conclude with the possible impact that such measure would have in the Spanish law and the obstacles it might find, given our credit concession system and risk measurement procedures, which are indeed affected by the current Spanish Data Protection Act.

Note: Downloadable document is in Spanish.

Keywords: Unlimited Liability, Bankruptcy, Consumer, Credit Score, Personal Data Protection, Reckless Consumer Lending, Discharge, Fresh Start

Suggested Citation

Casas, Matilde Cuena and Casas, Matilde Cuena, Fresh Start and Loan Market (July 1, 2011). InDret, Vol. 3, 2011, Available at SSRN:

Matilde Cuena Casas (Contact Author)

Complutense University ( email )

Carretera de Humera s/n
Madrid, Madrid 28223

Universidad Complutense de Madrid (UCM) ( email )

Carretera de Humera s/n
Madrid, Madrid 28223

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