Recently, Decision No. 22/2026 of the Single-Member Court of First Instance of Naxos, sitting under the voluntary jurisdiction procedure, was issued. By that decision, the Court ordered the registration of the applicant’s name, as an individual, in the Electronic Solvency Register for debts owed to banking institutions and the State amounting to €1,249,803.25. The decision was issued pursuant to Articles 172 et seq. of the Greek Insolvency Code, Law 4738/2020.
By Decision No. 22/2026, the Court held that there was no basis for declaring the applicant bankrupt or for appointing an insolvency administrator, due to the insufficiency of her assets. The applicant owns no immovable property, while her movable assets are limited to a vehicle of very low commercial value, namely €1,200. At the same time, the Court found that there were no bank deposits, as these had either been used in her attempt to repay part of her debts or had been seized by the State, with the result that her estate was insufficient to cover the costs of the proceedings.
The particular significance of the above decision lies in the determination of the amount of the applicant’s debts towards the State. Specifically, the Court, correctly interpreting Article 50 of the Greek Income Tax Code, accepted that the applicant did not bear joint and several liability in her capacity as manager of a Private Company for debts for which that Private Company was itself jointly and severally liable by reason of its participation as a general partner in a partnership.
Accordingly, instead of declaring bankruptcy, the Court applied Article 77 para. 4 of Law 4738/2020 and ordered the registration of the applicant’s name in the Electronic Solvency Register due to insufficiency of assets, holding that: “Such registration was deemed necessary in order for the legal consequences to take effect, including the applicant’s subsequent discharge from the debts she is unable to fulfil, so that she may be afforded a second chance.”
