The services of our bankruptcy lawyers in Greece are necessary for persons or companies that are involved in a situation in which they can’t repay their outstanding debts. Bankruptcy in Greece is a sensible matter that will lead to court hearings where the court can establish a suitable financial plan.
| Quick Facts | |
|---|---|
| What is bankruptcy? |
Bankruptcy refers to a legal measure initiated by an entity which can’t repay its outstanding debts. When this happens, the debtor (a company, an individual, etc.) seeks a way through which a part of the debts can be repaid. This can take the form of reorganization or restructuring. |
|
Types of bankruptcy proceedings |
Voluntary or mandatory, out-of-court or court proceedings |
|
Legal services related to bankruptcy |
Our bankruptcy lawyers in Greece can assist in litigation, arbitration, mediation. Our team can offer legal assistance on reorganization or restructuring, insolvency, creditors’ rights, loans, etc. |
| Law regulating bankruptcy | Law 4738/2020 |
| Entities that can become bankrupt |
Individuals, companies, partnerships, sole traders, etc. |
| Competent courts |
District Court, Court of First Instance |
| Can bankruptcy be initiated online? |
Yes |
| Institution in charge with the online application |
Solvency e-Register |
| What is small-scale bankruptcy? |
Small-scale bankruptcy refers to entities defined under the Article 2 of the Law 4308/2014, that have assets with a value of up to EUR 350,000. |
| Types of entities that can qualify for small-scale bankruptcy | Individuals, sole traders and companies qualifying as micro-entities |
| Creditors’ rights in small-scale bankruptcy |
Creditors can accept or reject the application for bankruptcy. They can also appoint an administrator they prefer (such as our bankruptcy lawyers in Greece). |
| Court in charge with large-scale bankruptcy |
The Court of First Instance (Large-scale bankruptcy refers to the procedure initiated by entities with assets above EUR 350,000.) |
| EU law on bankruptcy |
EU Directive 1023/2019 |
| Discharge of the debtor |
The debtor can be discharged in a period of 1 year since the date when the bankruptcy was initiated, without a payment plan, or in a period of 3 years, with a payment plan. |
| Court hearing for small-scale bankruptcy | Court hearings are not necessary for small-scale bankruptcy, the procedure can be completed in writing, through formal documentation that can be submitted by our bankruptcy lawyers in Greece. |
It is recommended to address to our lawyers in Greece who are specialized in this particular area of expertise, also knowing, as a client, that the attorney will try to find the best financial solution to a specific scenario.
Table of Contents
What legal services are available for bankruptcy in Greece?
Our Greek law firm is able to offer assistance in numerous ways to both creditors and debtors. Bankruptcy proceedings can happen on a voluntary basis, or they can be initiated by creditors. Regardless of how this procedure is initiated, our bankruptcy lawyers in Greece can provide legal assistance on the following:
- consumer bankruptcy;
- bankruptcy litigation;
- bankruptcy arbitration;
- mediation;
- bankruptcy procedures for companies.
Our team is also specialized in:
- insolvency;
- creditors’ rights;
- debt relief;
- creating a solvency plan;
- loans;
- personal bankruptcy;
- reorganization;
- restructuring.
The latter 2 can be necessary when the Greece bankrupts are represented by Greek companies or by foreign companies operating on the Greek market.
What are small-scale and large-scale bankruptcies in Greece?
The law on bankruptcy in Greece differentiates between small-scale and large-scale bankruptcies, which are resolved following different legal procedures. For small-scale bankruptcies there are simpler regulations.
First of all, for the small-scale bankruptcy, there is a financial threshold, and one can qualify for this type of bankruptcy as long as the value of the assets is maximum EUR 350,000. Then, the nature of the entity is of importance as well.
Here, it must be noted that individuals can qualify for small-scale bankruptcy procedure, if their assets has a maximum value of EUR 350,000. Additionally, the law takes into consideration for this procedure micro entities, which fall under the stipulations of Article 2 of the Law 4308/2014. Any legal proceedings concerning small-scale bankruptcy are held in the District Court.
Our attorneys in Greece can offer information on the legal proceedings that must be initiated in this case. Of course, you can rely on our lawyers for legal representation in front of the Greek court. In the case of large-scale bankruptcy, the value of the assets must be above EUR 350,000 and it usually involves companies and other commercial entities, but it can also refer to individuals.
What are the bankruptcy procedures in Greece?
Bankruptcy refers to the legal procedure through which an entity (natural person or corporate structure) is no longer required to pay all the financial debts accumulated over time, due to the fact that there aren’t sufficient assets that can be used for repaying the respective debts.
However, the procedure does not imply that the debtor no longer has any financial obligations towards the respective debts. Instead, the legal action that can be taken is that the debtor can be required to initiate a reorganization plan or to repay a part of the debt, through an approved and agreed method.
This is generally done through court proceedings, and this is why it is very important to address to a team of bankruptcy lawyers in Greece, as they have accumulated sufficient experience in this field. We also invite you to watch a short video presenting the bankruptcy procedure in Greece:
What is a vulnerable debtor in Greece?
A vulnerable debtor is a person who has limited financial resources and who can claim special rights in case of bankruptcy. The legislation on this matter stipulates that vulnerable debtors who have been declared bankrupt and who are also the subjected to enforcement procedures against their primary residency in Greece can sale and lease the respective property.
During the lease (which can be established for a period of maximum 12 years), the vulnerable debtor will retain the right to repurchase the said property (which has to be the primary residence). There are certain conditions to meet during this period of time, which can be detailed by our Greek lawyers.
The latest bankruptcy law, that was adopted in 2020, protects the primary residency of person living in Greece. Our team of Greek lawyers can offer more information on this matter. It is worth knowing that a vulnerable debtor is a person whose income is below EUR 21,000.
There are also certain requirements for the value of the property in which the person has his or her primary residency – this property can’t have a value above EUR 180,000. However, the financial thresholds vary based on the number of persons living on the property, and our law firm in Greece can present these rules
What is the law on bankruptcy in Greece?
The main rule of law regulating this legal matter is the Law 4738/2020 (the Debt Settlement and Facilitation of a Second Chance). The law became applicable starting with 1st January 2021. This new law also provides for the legal framework applicable to natural persons becoming bankrupt.
If you need further information concerning the provisions of this law, our law firm in Greece remains at your disposal. We also invite you to address us for information on other legal matters. Our law firm can represent you in immigration matters, citizenship, renting/buying real estate.
Greece bankrupts – recent statistics
The data concerning the bankruptcy level in Greece is gathered by the Hellenic Statistical Authority. The information has been collected through the data gathered by the Courts of First Instance, where such cases are typically held. In the list below, you can find information on the bankruptcy in Greece for 2020:
- in comparison to 2019, the bankruptcy of businesses in Greece fell by 9.5% in 2020;
- in absolute numbers, this accounted for 63 bankruptcies in 2019 and for 57 bankruptcies in 2020;
- the highest decrease of bankruptcy for businesses was observed at the level of sole traders (a decrease of 27.8%);
- with regards to the economic activity, the largest number of businesses that went bankrupt was registered in the wholesale and retail trade, repair of motor vehicles and motorcycles (28.1% of the bankruptcies);
- over the last 10 years, the number of bankruptcies has gradually declined in Greece – in 2011, there were 474 bankruptcies, in 2015, 206 bankruptcies, and since 2018, the yearly number was below 100 (82 in 2018, 63 in 2019 and 57 in 2020).
Thus, if you want to buy a property in Greece, our law firm can provide legal representation in all the stages of the procedure and will complete due diligence on your behalf, to make sure that the property doesn’t have any hidden liabilities. Please contact us for more information.