THE NEW “BANKRUPTCY” LAW: NEW DEBT SETTLEMENT

The company Brain Development Ltd. in this context, undertakes the process of debt settlement. For your immediate service, contact the phones: 2421313990 and 2421313967 and the address K. Kartali 1 in Volos, as well as the phone number 2427021773, Arkos Building in Skiathos.

The law on out-of-court settlement of debts of 240 and 420 installments, as stated by the Special Secretary for Private Debt Management, Fotis Kourmousis, gives a final solution to private debt, the protection of the first home and the urgent need to digitize public functions. Citizens now have a solution to settle their debts without an expiration date and this is the first time that Greek debtors are given the opportunity to settle all their debts for life, whether it is public and insurance funds or banks and funds. What Mr. Kourmousis points out is that there is no case of a vulnerable debtor leaving his house, if he takes the necessary regulatory actions. With the possibility of settling his – overdue – mortgage loan in 420 installments and the State subsidy with up to 210 euros per month, the borrower will be able to complete a small amount to repay his debts in 35 years. However, even if he is not able to make up for this small difference, he will be able to go bankrupt and then – through the special body set up for this purpose – pay rent in return for his stay at home, which in most cases part will be covered by the rent level.

The new law provides debtors with two options:

  • or they will pay the value of their property, even in 35 years
  • or they will go bankrupt in order to get rid of the debts permanently, clarifies Mr. Kourmousis.

As for the first solution of the out-of-court settlement, the platform for submitting applications  opened on June 1 and thousands of users have already visited it.

The steps of the process:

The first step is for the user to consent to the removal of confidentiality, thus giving a “signal” to all stakeholders to send to the platform the corresponding data (income, tax, assets, debts to banks, insurance funds, Public, DEKO etc. a.).

It is worth mentioning that the applicant does not need to submit any supporting documents himself, unless of course there is a very special condition that needs to be treated favorably (eg health reasons). So we are talking about an “all-digital experience”.

The application fields are filled in gradually within 15 days. The user can intervene by changing any item that is not accurate or by filling in the debts that do not arise automatically (eg DEKO).

Once his application is completed, he submits it and receives an immediate response on whether he meets the criteria of the algorithm-based regulation that examines all data.

If, for example, a debtor has high value real estate, the request for out-of-court settlement is not accepted, which is also the case with high value data transfers, since the algorithm “runs” retroactively over a period of 10 years to identify “suspicious” transfers or cash withdrawals to place them on the “mattress”. In this way, the strategic defaulters are excluded, a big “wound” of the banking system that opened with the well-known “Katselis law”.

From the moment the application is submitted, all enforcement procedures, such as auctions, are automatically frozen.

By weighing the debts with the applicant’s assets, income and expenses, the algorithm automatically proposes an arrangement to the creditors, which provides for a minimum monthly installment of 50 euros for each of them.

The State automatically accepts the proposal and then the banks will have to decide based on a series of criteria explicitly defined by law.

Banks or servicers can reject an arrangement if there is a guarantor with a high disposable income or in the event of a divorce where one refuses to contribute to the arrangement and the other does not bear the entire debt (the debt does not break in two) etc.

 

A two-month period is provided for by the legislation for the settlement agreement process.

 

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