November 2024

Decision of the Single-Member Court of First Instance of Rodopi on Granting a Second Chance for Debts Exceeding €300,000

Decision No. 243/2024 of the Single-Member Court of First Instance of Rodopi has been published regarding the application for a simplified bankruptcy procedure under Law 4738/2020, submitted by our client. The decision orders the registration of the applicant's name in the Electronic Insolvency Registry, pursuant to Article 77 §4 of Law 4738/2020.

Specifically, regarding the applicant's registration in the Electronic Insolvency Registry, instead of declaring bankruptcy, the court ruled as follows:

"However, the applicant does not possess any significant assets apart from the aforementioned salary [...] and, for this reason, it is probable that the unencumbered assets of the applicant are insufficient to cover the costs of the proceedings, and their annual income does not exceed twelve times the unseizable amount provided for in paragraph 2 of Article 33 of the Public Revenue Collection Code under Law 4978/2022 (i.e., €1,250 x 12 = €15,000). [...]”

In this manner, the applicant is granted the opportunity for a "second chance," as they may be fully discharged from all debts existing at the time of filing the application, amounting to over €300,000, within three years from the date of the aforementioned registration.