DACIÓN EN PAGO Shirin Fardi and Encarna Mesa Inglés Jurídico, January 2012
INDEX1. The concept : Spanish/English legal term2. Legal & plain English definition3. Legal Procedure4. Process5. Alternatives6. Dación en pago & foreigners7. Conclusions
SPANISH/ENGLISH TERM dation enDación en assignment datio pro dation in paiement pago in payment soluto payment (French term)
Legal & plain English definition• LEGAL ENGLISH: formal legal procedure in which a borrower might cancel his creditors’ debt handing in exchange any of his assets.
Legal & plain English definition (I)• PLAIN ENGLISH: handing back your home keys to the bank to cancel your debts.
LEGAL PROCEDUREThis legal procedure isbased on Art 1175 of theSpanish Civil Code, whichestablishes that a borrowercan cancel his creditors’debt handing in exchangeany of his assets.
LEGAL PROCEDURE IAccording to Art. 1911 of the Spanish Civil Code, (Signing a Spanish Mortgage)“Del cumplimiento de las obligaciones responde el deudor con todos sus bienes, presentes y futuros.”
LEGAL PROCEDURE IIYou will be held personally liable with all yourassets, both now and in the future, for thedifference between what you owe the bankand what the property is worth after the fullrepossession procedure is over.
DACIÓN EN PAGO & FOREIGNERS I• Popular solution after the Financial Recession• Stop the delay in payments• Foreigners back to their countries without debts• Better & cheaper solution than a legal process in a foreign country• Some countries protect their citizens Eg.: Ecuador