September 2023
The (In)sufficiency of Assets as a Reason for Acceptance/Rejection of the Bankruptcy Petition and the Provision of a Second Chance to Debtors
During the month of December, an out-of-court procedure was completed, through which a company managed to settle debts of approximately 400,000 euros to the Greek State. The repayment of the company's debt was settled over a period of 13 years with 156 monthly equal instalments, i.e. a number of instalments much higher than what it could have achieved outside the out-of-court procedure. In this particular case, there was no debt write-off, as the company owned real estate worth more than several times the value of its debts.
It is noted that, by reaching a settlement through the out-of-court mechanism, the taking of coercive measures against the debtor is suspended, as well as the criminal prosecution for the offences of non-payment of debts to the State and non-payment of insurance contributions, while it is now possible to issue the debtor with proof of tax and insurance awareness.
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