OUT-OF-COURT DEBT SETTLEMENT MECHANISM PLATFORM

Unfortunately, many debtors and borrowers have not managed to settle their debts to banks, funds (servicers), the State and EFKA to date. At the same time, the repeal of the Katselis Law (Overindebted Households) does not give them the opportunity to be led to a judicial process through which they can settle or reduce their debts and at the same time protect their main residence.

Furthermore, at the legislative level, there does not seem to be a will to pass a law on debt settlement with beneficial provisions comparable to the Katselis law. On the contrary, the current trend is for the platform of the extrajudicial debt settlement mechanism to play the regulatory role. In fact, the improvements to the procedure that were made in 2023 show that the future in the field of private debt will be its settlement through this platform.

There is now no barrier to the debtor/borrower's recourse to it. Thus, legal entities (enterprises) and all natural persons (citizens) have the right to submit a request for inclusion in the platform of the extrajudicial mechanism, regardless of income, marital status, profession and property, with the only condition that their debt is greater than 10,000 euros. In contrast to the Katselis law, the platform also includes debts to the State (Tax Office, Social Insurance Institution, etc.) and EFKA, which continue to burden many of our fellow citizens, unable to meet the regulations announced from time to time by public bodies, due to the limited number of installments and the consequent large amount of each installment. At the same time, all debts to banks and funds (servicers) as well as to third parties are also included.

With the platform, the debtor/borrower can be led to great financial relief, as he is given the opportunity to settle his debts over time, specifically up to 240 monthly installments for the State and up to 420 monthly installments for banks and funds (servicers).

While the write-off/haircut can reach up to 75%-80% on the principal debt, up to 85% on the surcharges and up to 100% on the interest (!) depending on the case.

Very important is the fact that the inclusion of someone in the platform of the extrajudicial mechanism, in addition to the haircut of debts, entails a reduction in the installment and a reduction in the interest rate, as well as the safeguarding/protection of all their assets, which cease to be at risk. Even if an auction has been scheduled, it is suspended. Also, for those whose debts to the State constitute a criminal offense, criminal prosecution is suspended and the execution of their already imposed sentence is postponed/interrupted.

Therefore, the out-of-court mechanism platform is now a one-way street for many debtors and their inclusion in it should be carried out by a specialized lawyer.

Our office assists you directly and effectively in your integration into the out-of-court debt settlement mechanism platform, providing a definitive solution to your debt issue.