According to information by reliable sources, this regulation is similar to the one that applies on the occasion of bankruptcy on enterprises and similar to the well-known ‘Article 99’, which will lead to a complete remission of debts to the state and banks, but at a “big cost”. The main philosophy of the government for this action, is to protect individuals and households, but within a framework of guarantees and with the consent of Justice.

The most important part of the regulation is to create a substantially new legal institution that works in terms of making direct decisions. In other words the “Court for the poor” is the judicial authority which will give the go ahead for allowing bankruptcy of households and individuals but also allow a number of exemptions.

More specifically, during the following weeks the second bankruptcy Law for individuals will be completed, which would essentially replace the “Katseli law” and other scattered arrangements in order to protect the economically weak borrowers and debtors. Essentially, based on various sources of the Ministry of Development, citizens in debt will be given the opportunity to choose between two alternatives.

Either the new law “type Katseli”, which relates to cases where borrowers wish to maintain their homes in their possession, so they have to find ways of reconciliation but at the same time following specific terms and of course paying part of their obligations, or choosing the new judicial character process from the beginning.