What happens if I lose a civil case and cannot pay?

Question

José Manuel Alburquerque · Accepted Answer

If you do not pay what the judgment says, the winning party can apply for enforcement and the court will attach your assets until the debt, the interest and the costs are covered, all of which keep growing for as long as you do not pay. Being unable to pay is not a crime and does not lead to prison. Moreover, the part of your salary or pension that does not exceed the national minimum wage generally cannot be attached. What can be a crime is hiding assets or lying when the court asks you to declare them. The most useful course is usually to negotiate payment in instalments with the winning party and, if your debts are more than you can handle, to look into the second chance procedure (“segunda oportunidad”). What can happen Once twenty days have passed since the judgment became final, the winning party can ask the court to enforce it. From then on, the following can happen: Attachment, without prior warning, because with a judgment there is no need to serve a formal demand for payment on you first. It normally starts with the money in your bank accounts, followed by the attachable part of your salary or pension, what others owe you and your assets, such as a car or a flat, which may end up being auctioned. More debt. Interest is owed from the first-instance judgment, at the statutory interest rate plus two percentage points, which in 2026 is 5,25 % a year. In principle you will also pay the costs of the enforcement. The obligation to declare your assets. The court can require you to state what you own and impose periodic fines on you if you do not cooperate. Giving an incomplete or false list, or not giving one when asked, can be a crime. So can getting rid of assets to avoid paying. If you have appealed the judgment, bear in mind that the appeal does not prevent the winning party from applying for its provisional enforcement. How to negotiate payment A civil court judge cannot make the winning party accept payment in instalments, but nothing prevents you from agreeing on it. A realistic agreement may also be in the winning party's interest, because enforcement takes time and money. If you reach one, it is advisable to put it in writing, with the payment schedule and what happens if you fall behind. You can then jointly ask the court to suspend the enforcement or to approve the agreement. The sooner you pay, even if only part, the less interest and costs the debt will build up. If you have an asset you can sell, selling it yourself to pay usually raises more money than an auction. If it has already been attached, do so in agreement with the winning party, so that the price goes towards the debt and the attachment is lifted. If your debts are more than you can handle If you cannot pay this debt or your other debts, the second chance law allows an individual, in insolvency proceedings (“concurso de acreedores”) and subject to certain requirements, to be released from the debts they cannot pay, sometimes with a payment plan lasting a few years. Some debts are not written off, such as maintenance payments or compensation arising from a criminal offence. While the insolvency proceedings are under way, attachments generally cannot continue. It is advisable to consult a lawyer before the situation gets worse.