Debt & Restructuring
A debt that has run out of control is not a dead end. It is a problem with statutory solutions, and we look at your position as a whole before choosing, with you, the one that genuinely serves you.
Greek debt legislation has been rewritten repeatedly in recent years, and each instrument (the out-of-court debt settlement mechanism, the banks’ code of conduct, bankruptcy with discharge, a negotiated deal with the creditor) carries different conditions, costs and consequences. Our first step is always a complete picture. Which debts exist, to whom, secured on what, and what income or property needs protecting.
With that in front of us we recommend the most realistic route, which is not always the most impressive-sounding one. We handle the out-of-court platform, negotiations with banks and with the funds that have bought up loan portfolios, and representation in court where an application under the ‘Katseli’ law is still pending or a home has to be protected from auction. The aim is a settlement you can actually keep to.
Matters we typically handle
The out-of-court debt settlement mechanism
A state-run electronic platform on which debts to banks, to the tax authorities and to EFKA, the single social security fund, are restructured together. We prepare and submit the application, review the creditors’ proposal, and advise you candidly whether to accept it or negotiate.
Non-performing loans: banks and funds
We negotiate with banks, and with the servicers that manage loans sold on to investment funds, for a settlement matched to what you can genuinely pay: a longer term, a lower instalment, or a write-off of part of the debt.
Settlement under the banks’ code of conduct
The Bank of Greece code obliges a lender to follow a set procedure with a borrower in arrears before calling in the loan. We use that Arrears Resolution Process to put a viable proposal forward, a stage that is often overlooked although it offers real room for manoeuvre.
Over-indebted households (the ‘Katseli’ law)
The earlier statute for over-indebted households, under which many applications are still pending. We follow those applications and re-listings, appear at the hearing, and make sure settlements already granted are applied correctly.
Second chance: bankruptcy and discharge
The procedure under Law 4738/2020, the current bankruptcy code, leads to a discharge of the remaining debts, as a rule within one to three years. We assess whether it serves you and handle the whole route.
Negotiating directly with creditors
Where the statutory platforms do not fit your circumstances, we negotiate a tailored settlement or a discounted lump-sum payment with the creditor directly.
Frequently asked questions
What is the out-of-court debt settlement mechanism?
An electronic procedure that settles debts owed to banks, to the State and to EFKA, the single social security fund, in one process, with up to 240 monthly instalments and the possibility of part of the debt being written off. The application needs careful preparation, because the figures you declare are binding.
Is my main home at risk?
That depends on how far the matter has gone. Before an auction there is usually room for a settlement or for protection through the courts. The earlier you act, the more options remain.
What does ‘second chance’ mean?
The bankruptcy procedure under Law 4738/2020. The assets you hold are realised, but you are discharged from the remaining debts, as a rule within one to three years, and start again from a clean slate.
The answers above are general information and do not constitute legal advice on any specific matter.