The criteria and conditions for the final cancellation of debts that have been included in the regulation of the Katseli law
Under certain terms and conditions the tax administration proceeds to write off debts which have the State ta over-indebted households which with the Katseli law they have settled their debts and keep their commitments.
The current legal regime provides that the normal performance by the debtor of the obligations imposed by the court decision results in the deletion from the balance of his debt vis-à-vis all creditors. However, in case the exemption is lost, the debts are “revived” and the auction process of the main residence is activated.
In more detail, for the cancellation of debts to the State of over-indebted natural persons, the following conditions must be met cumulatively:
– The requirement of the State as a creditor has been included in the debt settlement plan included in the debtor’s application before the competent Magistrate’s Court and has not been excluded by the court. The debtor’s application for subordination of his debts to Law 3869/2010 to the State has been served.
– Has the debtor complied with the settlement of his debts, in accordance with the court decision and the law, with the specified payments within three years, to all creditors. That is, it is not enough for the debtor to comply with the normal performance of his obligations towards the State, but his compliance with all the creditors, whose claims are covered by the judicial arrangement, is required.
The debtor is exempted from debts:
– certified by the Tax Administration to the State or in favor of third parties,
– individual, i.e. certified in the debtor’s tax identification number or tax identification number. of a third party, for which the debtor has sole responsibility, such as debts from inheritance, or from co-responsibility, i.e. certified to the A.F.M. of a third person, for the payment of which the debtor is jointly and severally liable with this person, provided that they are regulated by the court decision of Law 3869/2010.
Exceptions
The debtor is not exempted from confirmed debts which, while included in the application for their inclusion in Law 3869/2010, were excluded and not regulated and not included by the debtor in his application nor included in the procedure by the court.
In order to permanently write off the debts for which the debtor has been discharged, the following conditions must be met cumulatively:
- That the court decision by which the debts were regulated according to Law 3869/2010 has become irrevocable.
- The deadline for applying for a discount has passed, i.e. 2 years have passed since the exemption occurred, without a creditor having applied for a discount or, in the event that an application for a discount has been made, an irrevocable rejection decision has been issued on it .
- There should be no other debtors/responsible persons other than the exempted debtor for the debts subject to exemption.
- Since the court decision excludes the debtor’s main residence from the sale, the repayment of the installments specified in it has been completed.
