July 2022

Judgment of the Athens Magistrate's Court on Providing a Second Chance to an Entrepreneur with Debts of approximately 350.000 euros

The Athens Magistrate Court issued decision No. 70/2022, which gives a "second chance" to a natural person who previously had a sole proprietorship providing theatrical and other theatrical services with the possibility of cancellation of his debts, provided that within 3 years from the registration of his name in the solvency register, one of his creditors does not successfully appeal. In particular, his inability to pay and lack of liquid assets were recognised, with the result that he was not declared bankrupt but his name was entered in the solvency register. After the expiry of three years from such registration all, a discharge is obtained from all those existing at the time of filing the bankruptcy petition. The operative part of the judgment reads as follows: 'Provides the petitioner with a second chance. Orders the registration of the applicant's name in the Electronic Insolvency Register'. As to the lack of liquid assets and therefore the avoidance of bankruptcy, it was held that: "[...] since there is no case of bankruptcy due to the insufficiency of the applicant's assets, which have no movable or immovable assets or income to cover the costs of the proceedings, as is clear from the financial information submitted to the ERO pursuant to Article 77(1)(b) of the ECM. 4 ν. 4738/2020, it is necessary to order the registration of the applicant's name in the Electronic Solvency Register in order to bring about its consequences, including the subsequent discharge of the applicant from the debts that she cannot fulfil, in order to give her a second chance'. The amount of the debts to be written off is approximately EUR 350 000 and relates to debts to the State and the EFKA.

(for more see here and here)