The out-of-court mechanism allows debtors a viable settlement of debts to banks, funds and the State. How it works and when it is worthwhile.
Many households and businesses face non-performing debts to banks and credit servicers/funds. The out-of-court mechanism offers an institutional route to a viable settlement.
Who can apply
Individuals and legal entities with debts to financial institutions, the State and social security funds, provided they meet the eligibility criteria.
What a settlement can achieve
Depending on the case, a settlement may include extending the repayment period, reducing the interest rate or even writing off part of the debt, on the basis of viability.
The lawyer's role
Proper preparation of the file, assessment of any unfair terms and negotiation with creditors materially increase the chances of a favourable settlement.
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