New Out-of-Court Settlement Platform for Debt Regulation Now in Effect

The improved platform of the out-of-court settlement mechanism is now active, with key prerequisites being that the debt amount must exceed €10,000 and debts must have been overdue for at least 90 days. According to ertnews, by Wednesday, only 7% of debtors fell within the income limits that made this solution mandatory for creditors. Now, not only income but also property and deposits thresholds have doubled. The taxable income for single households rises from €7,000 to €14,000, for couples to €21,000, and for families with a child to €28,000. Similarly, the property limit extends from €240,000 for singles to €330,000 for a four-member family. Lawyer Ariadne Nouka told ertnews, “The aim is to include more debtors under the provisions of the out-of-court settlement, which will succeed, bringing in not just the truly vulnerable but also middle-class debtors.” The maximum number of installments is set at 240 for public and insurance fund debts and 420 for loans. The new mechanism obliges creditors to submit a written proposal for settlement to debtors at least three months before the auction. The interest rate for all debt settlements with the Public Sector, banks, and debt management companies is fixed at 3% for three years.