Spain, for example, passed a bankruptcy law (ley concursal) in 2003 which provides for debt settlement plans that can result in a reduction of the debt (maximally half of the amount) or an extension of the payment period of maximally five years (Gerhardt, 2009); nevertheless, it does not foresee debt discharge.
http://en.wikipedia.org/wiki/Bankruptcy
Spanish Housing Related Suicides and Rules ... No Debt Discharge, Even in Bankruptcy
Spain's laws regarding foreclosures and mortgage debts undertaken by home owners seem like something left over from the dark ages.
While we in the U.S. may rightfully be accused of being too lax, Spain unquestionably is too harsh. So much so that two recent suicides have caused a national uproar and protest movement to occur.
http://augustametros.blogspot.com/2012/11/spanish-housing-related-suicides-and.html
