DECISION NUMBER 1172/ Φ 1245/ 2014
THE ATHENS JUSTICE COURT
VOLUNTARY JURISDICTION PROCEDURE
DEBT SETTLEMENT OF OVERBORROWED INDIVIDUALS
It was formed by the Justice of the Peace S. Ch., who was appointed by the President of the Three-Member Administrative Council of the Athens Justice of the Peace Court with the collaboration of the Secretary K. V.
It sat in public session on March 18, 2014, to try the following case between:
The applicant: K. P. of G. and C., resident of Ano Glyfada, Attica, who appeared with his attorney, Saint Zervea.
The creditors participating in the trial, who became parties after their legal summons (articles 5 of Law 3 869/2010 and 748 par. 2 of the Code of Civil Procedure), namely: -1. the banking company with the name "NATIONAL BANK OF GREECE S.A.", headquartered in Athens and legally represented, which was represented by its attorney-at-law, I. X. -2. the banking company with the name "EUROBANK ERGASIAS S.A.", headquartered in Athens and legally represented, which was represented by its attorney-at-law, P. G.
The applicant, with his application dated 9.3.2012, for a voluntary jurisdiction procedure, filed with the Secretariat of this Court under filing number __/ 28.3.2012, the hearing of which was set for the date mentioned at the beginning of this decision, requested what is mentioned therein.
During the hearing in question, after the case was read out from the relevant board in the order in which it was recorded, the attorneys for the parties presented their claims and requested what is stated in the minutes of the public hearing and in their written submissions, which are identical to this decision.
A discussion followed, as reported in the relevant minutes, and the Court.
STUDY THE FILE
IT WAS THOUGHT IN ACCORDANCE WITH THE LAW
The applicant, with his application under consideration, citing a permanent inability to pay his overdue financial debts to his creditor banks, requests their settlement in accordance with the settlement plan he submits, after taking into account his family and financial situation, which he presents in detail.
With this content and request, the application, considered admissible and competent, is brought for discussion to the competent court in the district in which the applicant's main residence is located, in the procedure of voluntary jurisdiction of articles 741 et seq. of the Code of Civil Procedure (article 3 of law 3 869/2010). For its admissibility, it was observed ...
The application under consideration is sufficiently defined, rejecting the claims to the contrary of the creditors present, and is legal insofar as...
From the assessment of the sworn examination of the witness of the applicant I. K. in the Court's hearing, the documents legally and within the time limit submitted by the parties, what was presented orally and in writing by their attorneys and the lessons of common experience, which are taken into account ex officio, the following facts were proven in the opinion of the Court, which have a significant influence on the outcome of the trial:
The applicant, K. P. of G. and X., resident of Ano Glyfada, Attica, was born in 1948, is married in a second marriage to S. A. D. and has three adult daughters (see the submitted certificate of his marital status, from the Municipality of Glyfada).
The applicant has the following debts to his creditors, arising from credit product agreements drawn up more than a year before the filing of the legal application, are considered by law to be overdue upon notification of the application, and are calculated at their current value at the time of its notification, except for the following housing loans, the interest on which continues until the issuance of the decision, namely: -1. to the "NATIONAL BANK OF GREECE S.A." a total debt of 228,976.81 euros (a.71,340.36 + b. 37,636.16 + c. 120,000.29) arising from housing loan agreements for the reconstruction of their family home, which is fully owned by the applicant's wife, S. – A. D. The applicant is liable for the repayment of a. debt as a guarantor while for the repayment of b.c as a co-debtor, in full with his wife. The relevant claims of the creditor are secured in rem by mortgage notes of the first, second and third class on the aforementioned house of his wife -2. to "EUROBANK ERGASIAS S.A.", total debt of 18,785.12 euros (a. 3,898.94 + b. 2,265.76 + c. 12,620.45). That is, the total amount owed by the applicant to the defendant credit institutions amounts to 247,761.93 euros.
The applicant has been facing very serious health problems since 1996, as he suffers from “LERISCHE syndrome”. Due to his illness, he has undergone two surgeries for an abdominal aortic aneurysm, an aortofemoral bypass on both sides and a femoral bypass on the right. He has been deemed disabled to a degree of 67% by the competent committee of the Athens Social Insurance Institution and has been receiving a disability pension in an amount equal to 75% of the amount of the full old-age pension since the year 2000, while he has undergone at least three health examinations (see the hospitalisation certificate of the First General Surgery Clinic of Asklepieion, Voula, submitted with ID number 2253/18.4.200, the opinion - discharge certificate of the pathology clinic of the Kefallinia hospital dated 30.5.2007 and the decision of the director of the Athens pension branch of the General Insurance Institution with number 33296/29.11.2007). His personal income comes exclusively from his pension and amounts after deductions to the total amount of 607.42 euros, namely 427.42 euros for the main pension and 180.00 euros for the supplementary pension (see the submitted pension information notes). His wife, S. A. D., aged 60, has been unemployed since 2008 as her efforts to find work have remained fruitless to date (see the submitted unemployment card) and has zero real (not presumed) personal income. The applicant lives with his wife, his daughter G., the unemployed husband of P. S. and her newborn infant and the unmarried daughter of D., in a property owned by his wife. His daughters are able to cover their basic personal expenses as they are employed with monthly salaries of 900.00 and 600.00 euros respectively (see submitted certificates of their earnings). However, in view of their own debts to credit institutions, their ability to contribute to covering the inflexible expenses of the family is limited. In order to properly service all of the applicant's loan obligations, an amount greater than 1,500.00 euros is required per month. From the comparison of the above amount with his income, taking into account the necessary expenses to cover the basic living needs of his family, it follows that the applicant has fallen into a permanent and general inability to pay the main volume of his debts. The applicant's over-indebtedness stems from mortgage loan agreements and consumer loans to cover extraordinary family and mainly medical expenses and is mainly due to his incorrect assessments regarding his ability to service his loan obligations. The applicant's inability to service his loan obligations is due to the collapse of the family budget following the reduction in his family income, due to the cuts in his pensionable earnings, the long-term unemployment of his wife and the increase in direct and indirect taxation in recent years, in combination with the amount of monthly installments required to service the credit products he had received, a large part of which, as consumer loans, are burdened with high interest rates and incorporate interest that is capitalized and compounded, with the result that the final debt ends up being multiples of the granted capital. In view of the unfavorable economic conditions prevailing in the country and the prohibitive age of his wife for finding work, his financial situation is not expected to improve to such an extent that he will be able to service the bulk of his debts.
The applicant does not own any real estate. He is the sole owner of a private passenger car, 1,400 cc, first manufactured in 2006, with a commercial value of 3,000.00 euros, the sale of which is not considered appropriate and advisable because it will not generate any purchasing interest due to its age, nor will it yield a significant price to satisfy the applicant's creditors. Based on the foregoing, the applicant, who has become permanently and generally insolvent through no fault of his own, meets the conditions for his inclusion in the favorable provisions of Law 3869/2010, with a view to settling his debts. Thus, the settlement of his debts will be made with interest-free monthly payments from his income directly to his creditors for a period of five years or 60 months (article 8, paragraph 2, law 3 869/2010 as in force after its amendment by law 4161/2013), which will begin within the first three days of the following month from the publication of the decision, from which (payments), his debts will be satisfied proportionately. Because the Court finds the amount of 1,620.00 euros referred to by the applicant as excessive, as required and necessary per month for basic expenses of the applicant and his wife, since in view of the amount of their income and debts, their expenses must be limited to those absolutely necessary to cover their basic living needs, the amount that can be allocated to the applicant's creditors without significantly harming his standard of living, taking into account, in correlation, his income with his expenses and the large amount of his debts, amounts, in the opinion of the Court, to 50.00 euros per month and in particular -1. to the "NATIONAL BANK OF GREECE S.A." 46.21 euros per month and -2. to "EUROBANK ERGASIAS S.A.", 3.79 euros per month, exempting the applicant from the balance of his debts upon compliance with the terms of the arrangement.
In accordance with the above, the application under consideration must be accepted in part as substantially well-founded and the applicant's debts referred to in the application must be regulated, as specifically stated in the operative part. The applicant's release from any existing outstanding debt to his creditors will occur in accordance with the law (article 11 par. 1 of Law 3869/2010), after the proper execution of the obligations imposed on him by this decision and without prejudice to any amendment to this regulation. No legal costs shall be awarded in accordance with article 8 par. 6 of Law 3869/2010.
FOR THESE REASONS
He judges adversarial.
Accepts the application in part
It settles the applicant's debts with payments of 50.00 euros per month in total to his creditors, which will begin within the first three days of the following month from the publication of the decision and will continue for five years or 60 months and specifically -1. to the "NATIONAL BANK OF GREECE S.A." 46.21 euros per month and -2. to the "EUROBANK ERGASIAS S.A.", 3.79 euros
monthly.
It was judged, decided and published in an extraordinary public session, in Athens, in its audience, on July 15, 2014.
THE SECRETARY OF THE JUSTICE
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