February 2023

Judgment of the Athens Magistrates Court on the Provision of a Second Chance to an Entrepreneur with Debts of approximately 500.000 euros

The decision of the Athens Magistrate's Court No. 100/2023 was issued, ordering the registration of our client's name in the Electronic Solvency Register, pursuant to article 77 § 4 of Law No. 4738/2020, following the filing of a small-scale bankruptcy petition. The court, having found that the applicant met the insolvency requirements (limited annual income and failure to service, for a period of more than six months, outstanding debts to the State arising from his capacity as manager of a limited liability company already declared bankrupt and exceeding 40% of his total debts), subjected the latter to the provisions of Law No. 4738/2020 'giving him a second chance'. As regards the registration of his name in the Electronic Solvency Register instead of declaring him bankrupt, the court held the following: '... the debtor-applicant is completely devoid of property, as he has no assets in his name. Therefore, in view of his insolvency as established above, his total lack of seizable assets, and his annual income in addition to the reasonable living expenses does not exceed the reasonable living expenses, pursuant to Article 77(1)(b) of the Law of the Republic of Cyprus, he must be declared insolvent. 4 of Law No. 4738/2020, the direct application of which is not excluded in small-scale bankruptcies ... to order the registration of his name in the Electronic Solvency Register, in order to bring about the consequences provided for by the law and ultimately to discharge him as a debtor from his debts by providing him with a second chance, without the need for a bankruptcy procedure'. 

(for more see here, here and here)