Mr_Robot

I have a question - hope this is appropriate for these forums. Basically I have been working (legally) in Spain and it seems that soon I could be made unemployed. I will be entitled to unemplyment benefit, that’s not the issue.

My problem is that I have a large amount of credit card debt - 5k roughly - and on discussion with the bank it seems they do not have a system where there is any form of insurance (according to them). They say I will have to pay this from the unemployment benefit. Which obviously is a problem as this will just cover my rent.

So my questions are:

1) is there such an insurance?

2) if not then what will happen if I cannot pay? Is there such a thing as bankruptcy like in the UK - and if so what would be the ramifications of going this route?

3) Would I be allowed to earn an amount of money whilst retaining entitlement to the benefits?

Many thanks

MikeJ

Interesting thread - here's someone who wasn't offered (or declined) PPI and now would have benefitted from it. A bit ironic.


I often wonder how many of the PPI claims were made by people who knew what they were doing and then found that their circumstances changed or the debt was paid off and they no longer needed PPI but claimed for a refund anyway. I bet it's a big percentage. Just thinking.

Rosemary

Hi and a warm welcome to the Spanish forum on BE. Myself and Fred James are the moderators for the Spanish forums whilst BEVS moderates Europe. Moderators are there to ensure that the site runs smoothly within the rules of BE. This is so that members gain the information that they are looking for and find their experiences on the forums to be friendly and worthwhile.

Problems and complaints should always be addressed to a moderator who will look into the matter and deal with it efficiently and fairly. Our members who post in the Spain Forums are usually friendly and helpful with a wealth of knowledge about the issues of living in Spain. I hope that you enjoy your time participating in the forums.

Please let me know if you need any further help.

Rosemary

cricketman

1) If the bank says you did not take out the separate insurance policy, then there is no insurance

2) Don't know

3) You cannot work or earn any money legally while receiving unemployment benefits (paro)

Mr_Robot

Thanks for that. In the light of this then what happens if/when I can't pay?

Just as a note: the bank does not say I did not take out the policy - they say there is no such thing. Or else I could take it out now.

rachelk

Will you be entitled to any indemnización when/if you are made redundant? I know it doesn't answer your question but depending how long you've been there and how much you're entitled to it might pay off a chunk of that debt.

avocados

If u have no assets, they can't take em. It's only 5k so nothing to worry about. Spaniards usually prefer to go bankrupt rather than pay their debts.

Yes, u can work legally and claim benefits. U would need to speak with the authorities to make the arrangement and the adjustments required to your benefits.

No, the bank can't just take your money. But, I would suggest you have your paro paid into a different bank.
If they try to embargo your money through the courts, the maximum that can be taken has to leave a minimum of 980 (approx) per month in your account for normal living expenses. It varies based on circumstance, number of children, etc.