Cancel debt, save lives: the purpose behind Debify

In this episode of The Nomu Hour , we speak with Carlos Guerrero , lawyer, investor, and founder of Debify , a platform that helps individuals and entrepreneurs get out of debt and start over. A conversation about purpose, failure, debt, and how technology can have a real impact on the lives of thousands of people.

From lawyer to entrepreneur with a purpose

Carlos started as a traditional lawyer, but soon discovered that his calling lay somewhere else: entrepreneurship within the legal field . He launched his first firm with just one year of experience, before the Second Chance Law or the startup ecosystem in Spain existed. Over the years, he founded his own legal boutique focused on startups, participated in accelerators as a mentor, launched his own investment fund, and launched several legaltech companies such as LexWap and Saturno.

But the idea of creating a real solution to the debt had been with him since 2008.

The origin of Debify: the crisis that was never forgotten

During the financial crisis, Carlos saw firsthand how entrepreneurs and families were trapped by impossible debts. Even then, he began researching legal solutions and trained with judges in bankruptcy law. But it wasn't until after the pandemic that he decided to focus his entire business on a single company : Debify.

"We need to stop launching brands and focus. Focus is key," he says.

What Debify does

Debify offers three solutions depending on the client profile:

• Second Chance Law : 100% debt cancellation, including credits, credit cards, and personal loans.

• Out-of-court restructuring : negotiation with entities to reduce debt and establish affordable monthly payments.

• Orderly company closure : especially useful for startups and self-employed individuals who don't know how to exit a limited company with debt.

In just four years, they've canceled more than €100 million in debt and helped hundreds of clients regain financial peace of mind.

Starting a business knowing when to close

Carlos insists on the importance of understanding when to close a business :

"The most common thing is not for a startup to succeed, but rather for it to close. You have to make the decision in time so you don't go down with it."

The episode addresses how the 2022 reform limits the amount of cancelable public debt, making it even more urgent to close on time so as not to end up with the administrator's personal debt derived from the company .

Fintech with impact and scalability

Although it started as a legaltech, Debify is transforming into a scalable fintech . Its out-of-court restructuring solution is replicable in other European countries, and they are integrating AI to automate processes and filter cases. However, Carlos is clear that this must be done calmly, ethically, and with an experimental mindset, creating "mini internal sandboxes."

Takeaways from the episode

• Debt is an emotional problem, not just a financial one . Ninety percent of client blockages are psychological, not legal.

• Focusing on a single project can change everything . Traction comes when you concentrate resources, vision, and team in a single direction.

• There's a lack of a culture of closing businesses . In Spain, it's easy to open a limited company, but very difficult to close one properly. Debify educates and supports you in this process.

• Financial education and community . They're creating a community of people who have already paid off their debt to prevent relapse.

• The risk of over-indebted youth . Young people easily access quick consumer loans or cryptocurrencies without considering the consequences.