Dación en pago

Legal mechanism by which the debtor delivers an asset (typically a property) to the creditor to settle a debt, usually a mortgage. In Spain it is not automatic: the bank must accept it and there are specific conditions regulated by the Code of Good Practices (insolvency exclusion threshold). Different from eviction: here the debtor voluntarily delivers the property and the debt is fully cancelled. Useful when the property value covers the outstanding debt.