February 2025

Decision of the Athens Single-Member Court of First Instance on Bankruptcy Declaration for Debts Amounting to €14,500,000

The Athens Single-Member Court of First Instance recently issued decision no. 70120/2025, declaring our client—a natural person—bankrupt due to debts owed to banking institutions, the state, and social security funds, amounting to €14,500,000 (pursuant to Articles 172 et seq. of the Insolvency Code, Law 4738/2020).

Furthermore, with order no. 70189/2025 of the Bankruptcy Judge of the Athens Court of First Instance, a bankruptcy trustee was appointed, as the debtor's unencumbered assets (7.5% co-ownership shares in 24 horizontal properties, none exceeding 30 sq.m. each, with a total estimated value of approximately €23,000) were deemed sufficient to cover the bankruptcy proceedings.

Despite the debtor’s ownership of fractional shares in separate horizontal properties, which do not constitute a single economic unit and are commercially difficult to liquidate, the Court did not order the registration of the debtor’s name in the Insolvency Register (pursuant to Article 178 of the Insolvency Code). It is common practice for judges to declare bankruptcy and appoint a trustee even in cases where the debtor’s assets appear difficult to liquidate, particularly when the debt amount is significant, as in the present case. This approach aims to safeguard creditors' interests as much as possible and allow the trustee to assess the legality of the bankruptcy proceedings and the feasibility of potential bankruptcy clawbacks.

However, three years after the bankruptcy declaration, the debtor—being a natural person—will be discharged from the debts under Article 192 of the Insolvency Code, provided that no appeal is lodged, regardless of whether the aforementioned assets are liquidated.