October 2025

Decision of the Athens Single-Member Court of First Instance Recognizing Debt Discharge of €1,380,000 Within One (1) Year

Decision No. 564/2025 of the Athens Single‑Member Court of First Instance has been issued, by which our declaratory petition was accepted, recognizing that our client — already declared bankrupt — meets the conditions of Article 92(3) of Law 4738/2020.

Specifically, under Article 92(2) of Law 4738/2020, in case of bankruptcy of a natural person, the debtor is required, under certain conditions, to assign part of their income to the bankrupt estate. However, pursuant to Article 92(3), the legislator provided for the full exclusion of the debtor’s annual income from the bankruptcy estate, when the bankruptcy court determines by judicial decision that the bankrupt estate includes the debtor’s primary residence or other fixed assets whose value exceeds ten percent (10 %) of the total liabilities, and whose minimum value is not less than one hundred thousand euros (€100,000), excluding assets acquired in the twelve (12) months preceding the bankruptcy petition. In such cases, under Article 192(2) of the same law, for debtors falling under Article 92(3), the period for full discharge from obligations is shortened to one (1) year from the date of bankruptcy, instead of three (3) years.

By this decision, the Bankruptcy Court held that even debtors who have no income may qualify for the benefits of Article 92(3) and be discharged within one year, provided they satisfy all other conditions for excluding their income from the bankruptcy estate. This solution was advanced as legally and socially sound, in view of the legislative gap identified with respect to this specific category of bankrupt debtors.