Of Chrysostom Chufi

Enemy of good is the best. THE out -of -court mechanism It has begun to find… .Patisia (+81% of the arrangements in 2024 compared to 2023) and the Ministry of Justice brings 6 new modifications to further improve its operation.

The most important of these is the doubling of income and property criteria by which a debtor is vulnerable when he appeals to the out -of -court mechanism. Classified as vulnerable is crucial because by law, whatever arrangement “proposes” the algorithm of the out -of -court mechanism for a vulnerable debtor, the creditor (Bank, Public, Servicer) is obliged to accept it even if it does not agree.

Thus by doubling income criteria, vulnerable It is now considered to be cumulatively fulfilled by the following Criteria:

Type of household income property deposits

One -person 14,000 € 240,000 € 14,000 €
Household 2 members 21,000 € 270,000 € 21,000 €
Household 3 members 28,000 € 300,000 € 28,000 €
Household 4 members 35,000 € 330,000 € 35,000 €
Household from 5 members 42,000 € 360,000 € 42,000 €
and above

The only prerequisite is the debts of debtors who have the above asset profile, not exceeding the 300,000 €.

It is also important to emphasize that the increase in vulnerability limits only concerns the out -of -court mechanism and not the criteria for granting other benefits.

By 30,515 successful settings in the context of the operation of the out -of -court mechanism, Only 2,673 concerned vulnerable households. The finance ministry believed that there is room for improvement here and with this change and according to the Secretary General of Private Debt Management Theon Alabasian “exponential increase” of such arrangements is expected.

In fact, further improvement of regulation is expected by reducing the value of collateral property taken into account by the algorithm and rationalizing its criteria. ‘Reasonable rate of profit’ 10% in the case of legal entities to receive a larger number of doses.

Vulnerable debtors are favored by another change. So far to join the intermediate program and to avoid the auction they were available 60 days of the seizure issue. This is now changing and the auctioning can be avoided by the application up to 20 days before the auction is held. The period from the issuance of the seizure to the auction must be at least 7 months so the vulnerable period is significantly increased.

Certification that someone is vulnerable debtor is done by request on the website
https://www.gov.gr/ipiresies/periousia-kai-phorologia/diakheirise-opheilon/bebaiose-ealotou-opheilete

The debt settlement proposal proposed by the algorithm of the out -of -court mechanism takes into account the value of the property and the available income, after covering the reasonable and inelastic expenditure, both the debtor and its co -guarantors, if they have made a confidentiality have completed the actions provided.

In the event of disagreement With the proposed arrangement, banks and services, in the event of a disagreement, will have to take court (undertaking the cost of the procedure) to challenge the proposal if they have evidence that the vulnerable is not truly vulnerable.

Changes to the out -of -court mechanism will be included in the bill for the capital market that will be put into public consultation probably next week.