{"id":12401,"date":"2022-05-02T00:07:10","date_gmt":"2022-05-02T00:07:10","guid":{"rendered":"https:\/\/solvdebt-gem.pcinfo.work\/2022\/05\/02\/settlement-in-public-sector-up-to-240-months-with-the-out-of-court-settlement\/"},"modified":"2022-05-02T00:07:10","modified_gmt":"2022-05-02T00:07:10","slug":"settlement-in-public-sector-up-to-240-months-with-the-out-of-court-settlement","status":"publish","type":"post","link":"https:\/\/www.solvdebt.com\/en\/settlement-in-public-sector-up-to-240-months-with-the-out-of-court-settlement\/","title":{"rendered":"Settlement in Public Sector up to 240 months, with the Out-of-Court Settlement"},"content":{"rendered":"

What is the new Extra-Judicial Mechanism?<\/strong><\/h1>\n

extrajudicial mechanism<\/span><\/h1>\n

The new Extra-Judicial Mechanism<\/a> under the 2nd<\/sup> Opportunity of Law 4738\/2020 is effective from 1\/6\/2021 and gives the opportunity to individuals, freelancers and legal entities to settle their debts to Banks, the State and Insurance funds with the possibility of cancellation.<\/p>\n

What’s new?<\/strong><\/h1>\n

In contrast to the previous Extrajudicial Mechanism (Law 4469\/2017), which only applied to businesses, now individuals can also submit a single application for a comprehensive settlement of their debts to banks, the State and insurance funds.<\/p>\n

What are the cases where the Extra-Judicial Mechanism can be particularly effective?<\/strong><\/h1>\n
    \n
  1. \n

    Settlement of debts to the State and insurance funds<\/strong><\/h2>\n<\/li>\n<\/ol>\n

    If a business, a freelancer or a private individual wishes to settle directly its debts to the State or insurance funds, it will be offered a 12 or 24 instalment arrangement, depending on the case.<\/p>\n

    As can be easily understood, this arrangement for significant debts is not a realistic option for the majority of debtors.<\/p>\n

    However, the regulation of these debts, through the procedure of the Extrajudicial Mechanism can reach 240 instalments, with the possibility of debt cancellation! <\/u><\/p>\n

      \n
    1. \n

      Legal Dispute<\/strong><\/h2>\n<\/li>\n<\/ol>\n

      The participation of the debtor in the Out-of-Court Mechanism procedure, regardless of the outcome, means that the debtor has the intention to settle and is not a strategic defaulter.<\/p>\n

      His participation in the procedure can be used as a strong argument against a court case that the debtor has with either the State, the insurance funds or the banks, to protect his assets from seizure and auction.<\/p>\n

        \n
      1. \n

        Obtaining insurance and tax information<\/strong><\/h2>\n<\/li>\n<\/ol>\n

        As we all know, valid insurance and tax information is necessary for a number of transactions such as the transfer of property, the collection of money from the state, etc.<\/p>\n

        In the case of large debts to the State and insurance funds, their adjustment is necessary for obtaining tax and insurance information.<\/p>\n

          \n
        1. \n

          Many creditors and multiple debts<\/strong><\/h2>\n<\/li>\n<\/ol>\n

          This procedure is ideal for cases where the debtor owes money to more than two creditors (either banks or the State).<\/p>\n

          Normally, the debtor would have to go to each creditor individually to agree on a debt settlement, with whatever this might mean in terms of time, cost and outcome (unrealistic settlement).<\/p>\n

          With the application of the Extra-Judicial Mechanism, the debtor “invites” all creditors to participate in a joint procedure, with a specific timetable, in order to reach a common arrangement with the vote of the majority of creditors.<\/p>\n

          In any case, the debtor has the right to reject the resulting arrangement if he does not consider it advantageous.<\/p>\n

          \"\"<\/strong><\/p>\n

          If I apply to the Extra-Judicial Mechanism, can anything negative happen to me?<\/strong><\/h1>\n

          Nothing at all.<\/p>\n

          The debtor, whether a legal or natural person, has no legal consequences of any kind, even if at the end of the procedure, the debtor refuses the restructuring proposal proposed by the creditors.<\/p>\n

          If he refuses, the creditors will assess his refusal in the same way as they would if they spoke directly to the debtor.<\/p>\n

          On the contrary, from the submission of the application and for as long as the procedure lasts (maximum 2 months from the submission of the application on the online platform), the debtor-applicant receives legal protection from persecutory measures of his creditors and the continuation of the enforcement procedure on the debtor’s movable and immovable property in respect of the debts for which the adjustment is requested.<\/p>\n

          An exception is the case of an auction scheduled within 3 months from the date of final submission of the application on the electronic platform as well as any preparatory action for the auction by a creditor with a letter of credit (e.g. seizure).<\/p>\n

          Does the Extra-Judicial Mechanism work? <\/strong><\/h1>\n

          We receive many questions from stakeholders as to whether the Extra-Judicial platform is actually working and whether it is actually working or whether it is just another unsuccessful attempt by the state to regulate debts.<\/p>\n

          The online platform of the Extrajudicial Mechanism under the Second Chance Law (Law 4738\/2020) is operational as of 1\/6\/2021.<\/p>\n

          In fact, until November 2021, the platform had experienced various technical problems, but since then the platform has produced hundreds of long-term arrangements, solving the problem of hundreds of debtors, while thousands are already in the process.<\/p>\n

          Can the debtor apply on the online platform of the out-of-court mechanism?<\/strong><\/h2>\n

          The debtor has the option of making the application himself.<\/p>\n

          However, completing the application requires technical knowledge and considering that once you submit the application, you cannot submit another one for at least 12 months afterwards, it requires special care.<\/p>\n

          Besides, the official figures of the Special Secretariat for Private Debt Management are revealing.<\/p>\n

          From 1\/6\/2021, when the online platform of the Extra-Judicial Mechanism was opened until 28\/2\/2022, approximately 48 thousand debtors have entered and opened the application, while only 2 thousand have submitted the final application. That is only 4%. <\/p>\n

          What should I look out for when choosing a Consultant? <\/strong><\/h2>\n

          The advisor you trust should be certified<\/strong> for this procedure by the Special Secretariat for Private Debt Management, which oversees the online platform of the Out-of-Court Mechanism.<\/p>\n

          In addition to the expertise and knowledge of the procedure available to the certified advisor, he\/she has access to full technical support from a call centre of the E.G.D.I.H. that exclusively serves certified advisors of the Extra-Judicial Mechanism.<\/p>\n

          Correct completion and submission of the application is crucial, as in case of inaccuracies or omissions there is a high probability that the application will be rejected from the start and the debtor will have to wait 12 months to reapply.<\/p>\n

          Why Us?<\/strong><\/h1>\n

          Because we are a team of certified advisors in the Out-of-Court Mechanism process and we can responsibly, reliably and authoritatively support you throughout the process.<\/p>\n

          Besides, we have submitted dozens of applications with high success rates for those that have completed the process.<\/p>\n

          But not only that.<\/p>\n

          We have many years of experience in the financial sector (Banks, advisory services), having successfully handled numerous cases and we can advise you effectively to solve permanently and definitively the problem of overborrowing that plagues you.<\/strong><\/p><\/blockquote>\n

          Contact us for your case.<\/a><\/strong><\/p>\n

          \"\"<\/p><\/blockquote>\n

           <\/p>\n

          Read also: 9+1 truths about the New Extra-Judicial Mechanism<\/a> 2021<\/a><\/p>\n

          Visit the Articles section for more on debt regulation.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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