Finance

85,000 blocked bank accounts in the Balearics for unpaid debts

There is a high level of mortgage indebtedness in the Balearics. | Gemma Andreu

Majorca Daily Bulletin reporterPalma17/06/2016 00:00

There are 85,000 blocked bank accounts in the Balearics. These are because of unpaid debts, such as non-payment of mortgages, personal credit and credit cards. Of these accounts, 70% of them are said to be individuals' accounts, with the other 30% being accounts for small and medium-sized businesses.

The legal director of a company called Solve Your Debts says that the Balearics is one of the richest regions in the country but that people are now having to pay for excesses during the years of crisis and what is now a new crisis: one of debt that is affecting many families on the islands. To make matters more difficult, salaries are low, placing people at the risk of bankruptcy.

The actual number of people affected amounts to almost 8% of the Balearic population. A half of the blocked accounts are because of people being behind with their mortgage payments. Of those affected, 60% are men, while another 60% are single people as opposed to married couples. The situation, says the company, is getting any better. The economy might be improving, but the financial circumstances of these individuals and businesses are not.

There is a way out, however, and it is via the law of second opportunity that was introduced last year. It offers the possibility of starting over again to those with blocked accounts, who have had to give up their homes and who are unable to get back into the labour market. Debts can be cancelled.