Strong interest for debt payment scheme

More than 6,500 debtors access special online platform in just two days since its launch

Strong interest for debt payment scheme

More than 6,500 individuals or legal entities with debts to banks and the state have visited the Special Secretariat for Private Debt platform since it opened two days ago.

The platform offers out-of-court settlement proposals to applicants as part of a mechanism set up by the government to tackle bad debts and ease the burden on individuals and businesses, as well as credit institutions and the state. The platform operates by receiving applications from interested parties and proposing solutions. 

Since the platform opened on June 1, some 4,000 applicants have already accepted the lifting of their tax and banking confidentiality in order to submit their application, indicating that people are not just perusing the platform out of curiosity but are actually seriously interested in a debt settlement program.

The platform allows for the settlement of debts to the state in up to 240 installments and the extension of the repayment period to banks with up to 420 installments, along with the prospect of a possible outright haircut. 

This is the first time out-of-court debt settlement is open to individual debtors, apart from companies, freelancers and self-employed professionals.

It is also the first time debtors have been given the opportunity to apply for a settlement, even if they have been making payments on time and have no overdue arrears. 

Those entitled to take part in the debt settlement program are individuals whose incomes have been reduced by 20%, have debts in excess of 10,000 euros and have 90% of their debt not due to a single creditor.

The platform is programmed to perform a number of checks electronically. In the case of errors or omissions, applicants are notified electronically so they can make any necessary corrections or additions. 

The platform then issues a proposal based on the data extracted and entered. Creditors may disagree with the proposal and can propose an alternative.

The consultation of all creditors and the exchange of data is also carried out electronically and is displayed on the platform.

If the proposal secures the consent of the debtor financial institutions, it is forwarded to the state and the social security institutions, who are called within a certain period of time to check compliance with the requirements of the law.

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