Bankruptcy law

 

The new bankruptcy, which replaces a number of laws may be implemented in bothboth businesses and individuals. The bankruptcy application can be submitted by the debtor himself. Debt relief occurs at the end of the bankruptcy, subject to the exceptions set by law.
For individuals there is the possibility of saving the main residence in the following way. Vulnerable debtors may transfer their main residence to the competent authority, from which the debtor may rent it for 12 years, and after this period he can repurchase it.
The new bankruptcy legislation covers all debtors that have overdue debt to the State, Social Security Institutions or credit or financial institutions for at least 6 months, amounting to at least € 30,000, which constitutes at least 40% of the total liabilities.
In "small object bankruptcies" the conditions are the same, with the difference that the percentage increases to 60%. This category includes persons whose total assets do not exceed € 350,000 (individuals and companies). Also included are companies with a turnover of up to € 700,000 or staff up to 10 people.