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Generally there are two ways of debt restructuring:

  • Extra judicial proceedings
  • Judicial proceeding, by following Law No. 3869/2010 (Katseli Law)

Extra judicial debt restructuring
You can restructure your debts without going to court, in the following ways:

  • Code of Banking Ethics Law No.4224 / 2013
  • Negotiation Freedom
  • Mediation

Code of Banking Ethics, Law No. 4224/2013
Regarding to Code of Banking Ethics, you can find more information here.

Freedom of Negotiation
During the free negotiation process, you contact the bank openly, without being limited from the Code of Banking Ethics. This means that there are no time limits or specific documents to be collected, nor the right to object, etc. We recommend submitting in written form your request for settlement and keep a copy of it.

The process
You express to the bank your inability to continue paying off your debts following the agreed terms and ask for their setting. You express your request in written form, submit it to the bank and receive the corresponding registration number.

Then it is likely the bank to ask for documents to assess your financial situation. Such documents may be the most recent tax return, the E9 property statement, a copy of unemployment card, medical certificates certifying health problem etc.

After the bank has examined the documents, it suggests possible solutions of debt settlement. These solutions of settlement may include extending your the loan term, interest rate reduction or even debt relief.

If you reach an agreement, then you sign an amendment to the initial contract that includes the terms of the settlement

If you are a member of EKPIZO, then we can mediate on your behalf to negotiate with the bank, where we prepare and send debt restructuring requests tailored to your needs, while also we advise you regarding the adoption or rejection of the proposed by the banks regulations. Find here (link) information on how we can help you.

Mediation is a process through which two or more parties (in this case you and the bank) which have a dispute try to resolve it with the help of an intermediate objective third party, the mediator. The parties always participate in mediation with their lawyers. The mediator is not a judge and does not decide on how to resolve the dispute. Instead, he helps the parties to communicate and reach an agreement, which in the end decide on their own.

Mediation is a widespread alternative solution to resolving disputes abroad. However, in Greece it is not widely used, although the legislative framework already exists since 2010. Some of its major advantages are immediate dispute resolution and low cost.

Judicial debt adjustment

Judicial debt adjustment is succeeded with Law No.3869 / 10 (Katseli Law). More information can be found here.