ECONOMY

Bill to spell new bankruptcy terms

bill-to-spell-new-bankruptcy-terms

The Ministry of Finance is preparing a new draft bill on individual bankruptcy that will allow people to become free of debt within three years of declaring bankruptcy. The catch is that they must accept losing their property, including their main residence if they own it; the property will be liquidated by court order.

The draft bill has been agreed with Greece’s creditors after months of negotiations and will be published for public consultation next week.

There is still an unresolved issue and that concerns the entity that will be allowed to buy the homes of bankrupt people and allow them to continue residing in them on the condition that they pay rent.

Kathimerini understands that the draft bill will provide for the setup of the entity, but details about the way it will be able to acquire property and then allow bankrupt households to continue residing there will be determined by a ministerial decision that will be issued after the bill is voted and in consultation with the creditors.

The new draft bill also provides for people to apply online to the Special Secretariat for Private Debt for out-of-court debt settlement. The procedure is designed to take no longer than two months.