Out-of-Court Debt Settlement Mechanism: An Alternative Solution for Debtors
Debts represent an unpleasant reality for many citizens and businesses.
When financial obligations become burdensome and the pressure from creditors is intense, the out-of-court debt settlement mechanism offers an alternative solution that provides relief and hope for debtors.
The out-of-court debt settlement mechanism allows debtors who owe more than €10,000 to financial institutions, the government, or social security institutions to apply for the restructuring of their debts. This process requires the use of personal access codes on the Taxisnet platform and is evaluated by financial institutions through a specialized platform.
Debts may include loans, taxes, insurance contributions, and other financial obligations. By applying for the out-of-court debt settlement mechanism, debtors have the opportunity to propose debt restructuring programs, which if approved by their creditors, lead to the conclusion of a restructuring agreement.
It is important to note that the consent of the Government and Social Security Institutions is provided under “automated” conditions, thus offering faster processing of applications and reducing bureaucratic burden for debtors.
In addition to the out-of-court debt settlement mechanism, there are other options for debtors facing financial difficulties. Programs such as repayment in more installments, interest rate suspension, or relaxation of payment terms may offer relief to debtors struggling to meet their financial obligations.
Ultimately, the out-of-court debt settlement mechanism is a valuable tool for addressing financial problems and restoring economic prosperity. With the support and collaboration of competent authorities and institutions, debtors can find the path to economic recovery and regain their financial well-being.
