Electronic auctions, as well as the possibility of selling non-performing loans to funds, create new data against which only those borrowers who are in financial – property weakness will be able to defend themselves.
Borrowers who are unable to repay their debt can only be protected through their subordination to the law or the out-of-court mechanism, in the case of businesses or freelancers.
In order for someone who is financially unable to submit an application (until 31/12/2018) to protect their main residence in the Katseli law, they must meet the following conditions:
1) Gross income (before taxes) up to 13,906 euros for unmarried people up to 35,086 euros for four-member families
- Unmarried € 13,906 (before taxes)
- Married € 23,659 (before taxes)
- Married with one child € 29,373 (before taxes)
- Married with two children € 35,086 (before taxes)
2) The value of the main residence at the time of discussion of the application, not to exceed:
- For the unmarried € 180,000
- For the married person € 220,000
- For the married with one child the € 240,000
- For the married with two children the € 260,000
If the borrower does not meet even one of the above criteria, it is impossible to apply.
With the new regime of the law, they can be included in the judicial regulation in addition to the debts to the bank and debts to the State, except for those that constitute a criminal offence (eg VAT, fines, etc.). Under the revised law, the borrower will have to pay the bank the current commercial value of the property for a period of 20 years.
For those with an income of up to € 8,180 for single people and up to € 20,639 for four-member families and the fair value of their main residence does not exceed € 120,000 for unmarried and 200,000 for four-member families, state support is provided for the first three years of regulation.
