How does Greece’s Out-of-Court Debt Settlement Wotkout work in practice? Can it stop an auction? Is debt forgiveness always available? In the first episode of Case Closed, George Psarakis and George Kefalas answer the most common questions and explain the legal framework governing debt restructuring.
Case Closed #1 | Greece’s Out-of-Court Debt Settlement Workout
Private debt restructuring has become one of the most important legal and financial issues for individuals and businesses in Greece. Although the Out-of-Court Debt Settlement Workout provides a structured framework for resolving outstanding obligations, it is still surrounded by misconceptions regarding eligibility, debt write-offs, auctions and the role of creditors.
To provide practical legal insights into complex issues, we launch Case Closed, a new vidcast series dedicated to current developments in business, banking and insolvency law.
In the first episode, George Psarakis and George Kefalas discuss the operation of Greece’s Out-of-Court Debt Settlement Mechanism and address the questions most frequently raised by borrowers, guarantors and businesses.
What You’ll Learn
During this episode, we discuss:
- the eligibility requirements for entering the Out-of-Court Debt Settlement Workout,
- how repayment instalments are calculated,
- the role of banks, the Greek State, investment funds and loan servicers,
- whether the procedure may suspend an auction or other enforcement measures,
- when debt forgiveness is legally possible,
- the most common myths and misconceptions surrounding the mechanism.
The Out-of-Court Debt Settlement Workout is not an automatic solution that guarantees debt write-offs or favourable repayment terms. Every application is assessed on the basis of specific financial and legal criteria, making proper preparation and legal guidance particularly important.
In this first episode of Case Closed, the discussion combines practical experience with legal analysis, offering a clear overview of the opportunities and limitations of one of the most significant debt restructuring tools available under Greek law.
