To apply the Katseli Law, you should follow the conditions below:
- Be a natural person. Meaning, law does not apply to companies
- Do not have bankruptcy capacity. Meaning, have no trading license. However, former traders are covered only in cases that when they closed their books, their loans were updated
- Not be able to repay, generally and permanently
Types of Debt
Debts which can be regulated by this Law are:
- All debts to individuals
- Certified debts to Tax Administration (Tax etc.) with any premiums and interest on late payments
- Certified debts to local and regional authorities and legal persons with premiums and interest on late payments
- Insurance debts for Social Security Organizations with premiums and interest on late payments
Attention, someone who only has debts of type 2, 3 or 4 cannot be placed under Law No.3869 / 2010. It is essential to have debts to individuals too.
Types of debts below that cannot be regulated by this Law are:
- Debts that have been created and accredited the last year before submitting the application to the County Court
- Debts that have arisen from offense committed by the debtor fraudulently or with gross negligence
- Debts related to administrative fines or penalties
- Debts related to maintenance obligations towards minor children and spouse
To be placed under the force of Law No. 3869/10, you should do as it follows:
- Submit the application of Law No. 3869/10 at the County Court
- Provisional court order and set temporary instalment loan
- Final court order
First the application is submitted to the local County Court of the debtor (judicial document) which includes the financial statement, the assets and the debts, the living expenses of the debtor as well as the reasons of debt. After submitting the application, County Court sets two court hearings dates for the provisional and the final court.
At the provisional court, a few months after filing the application, the judge briefly examines the case and sets an installment that would be paid by the debtor in banks until the final court. This installment, under certain conditions, may be zero. The amount paid by the final court will be added to the total amount that will pay the debtor. At the same time, the main residence of the debtor is protected since he has paid the installment that has been set at the provisional court.
In the final court, usually after several years (although this is expected to change), the case is examined in depth and since the debtor is considered to be protected by the law, then the final installment to be paid to the banks is set, the payback period, the rescue of main residence, any other selloff of real estate that he may owe as well as possible debt reduction.
If you are our member of EKPIZO, our experienced legal advisors can check whether you meet the conditions of N.3869 / 2010, and advise you if it is worthy to be placed under the law and what you could accomplish in court.