The new Bankruptcy Law (No. 4738/2020 – “Debt Settlement and Second Chance”) introduced special provisions to protect primary residences. These provisions establish a new extrajudicial mechanism for debt settlement and provide a unified bankruptcy process for all categories of borrowers. Specifically, households and businesses are allowed to settle all their arrears to the Public, social security funds, banks, loan administrators, and other private creditors.
The process that needs to be followed is exclusively electronic, without a court's intervention, and is under the auspices of the Special Secretariat for Private Debt Management (SSPDM). For more information, you can visit the SSPDM official website.