May 2025

Completion of Debt Settlement Procedure through the Out-of-Court Mechanism with Debt Write-Off of €837,877.87

A multi-creditor debt settlement procedure was successfully concluded under the out-of-court debt settlement mechanism of Law 4738/2020, through which a total debt of 1,234,664.44€ owed by an individual was settled—specifically, €1,217,836.21 to financial institutions and 16,828.23€ to the State and e-EFKA (the national social security fund).

As part of the settlement, a total amount of 837,877.87€ was written off by the above-mentioned creditors (financial institutions, the State, and e-EFKA). The remaining balance was structured for repayment over the maximum period allowed by law—up to 240 monthly installments (20 years) at a fixed interest rate of 3% for the State and e-EFKA, and up to 420 monthly installments (35 years) with a fixed 3% interest rate for the first three (3) years for financial institutions.

It is noted that, in this particular case, the individual who secured the favorable terms under the out-of-court mechanism held a "vulnerable debtor" certificate.