Update on the new debt settlement and insolvency framework for small businesses and households

A Code for debt settlement and providing a second chance.

The new insolvency framework, enacted by Law 4738/2020 (Greek Government Gazette A' 207/27.10.2020) introduces a holistic approach to insolvency legislation in Greece and enables households and businesses to settle their debts, to the State, social insurance funds, banks, servicers and other private creditors.

The present newsletter addresses the provisions applicable to small businesses and households regulating the OCW mechanism, ordinary bankruptcy for individuals, small materiality bankruptcies and the vulnerable debtors framework, which entered into force as of 1.6.2021.

It also follows up our newsletter on corporate insolvency issued on January.