May 2022

Decision of the Kallithea Magistrate's Court on Providing Second Chance to a General Partner for debts of approximately 350,000 euros

The decision No. 2/2022 of the Kallithea Magistrate's Court was issued, which gave a general partner of a commercial enterprise a "second chance" with the possibility of cancellation of his debts if within 3 years from the registration of his name in the solvency register he is not successfully appealed by one of his creditors. In particular, it was recognised that his inability to pay and lack of liquid assets led to the avoidance of bankruptcy but the registration of his name in the solvency register. After 3 years from such registration, all debts of the applicant existing at the time of filing the bankruptcy petition are cancelled. The operative part of the judgment reads as follows: 'Provides the applicant with a second chance. Orders that his name be entered in the Electronic Insolvency Register'. As for the lack of liquid assets and thus avoiding bankruptcy, it was held that: "However, it is not presumed that the applicant has property to cover the costs of bankruptcy, since he has no unencumbered property and his annual income, in addition to the reasonable costs of living for himself and his family, does not exceed the reasonable costs referred to in Article 92 para. 5 Ν. 4738/2020". The amount of debts to be written off is EUR 350 000. For more on the procedure see here.