Basically I have been working (legally) in Spain and it seems that soon I could be made unemployed. I will be entitled to unemplyment benefit, that?s not the issue.

My problem is that I have a large amount of credit card debt - 5k roughly - and on discussion with the bank it seems they do not have a system where there is any form of insurance (according to them). They say I will have to pay this from the unemployment benefit. Which obviously is a problem as this will just cover my rent.

So my questions are:

1) is there such an insurance?

2) if not then what will happen if I cannot pay? Is there such a thing as bankruptcy like in the UK - and if so what would be the ramifications of going this route?

3) Would I be allowed to earn an amount of money whilst retaining entitlement to the benefits?

Many thanks