Debt Restructuring: A Critical Tool for Natural and Legal Persons in Greece

Debt restructuring constitutes one of the most essential mechanisms for economic restart for bank debtors, whether individuals or businesses. The Greek legislative framework has evolved significantly over the last decade, providing a multitude of tools and procedures aimed at maintaining the debtor's viability and preserving social and economic balance.

Our law firm provides comprehensive services for debt restructuring, supporting our clients at all stages of the process – from out-of-court negotiation to judicial confirmation of arrangements – with the aim of avoiding delays and problems that arise in practice.

Out-of-Court Debt Settlement Mechanism

Law 4469/2017 introduced the out-of-court debt settlement mechanism, which allows the submission of a request through a central electronic platform for negotiation with all creditors. Article 11 provides for the appointment of an expert to assess viability and prepare a restructuring proposal, while Article 12 provides the possibility of judicial confirmation, with automatic suspension of enforcement measures for the duration of the pending case.

Arrangements for Vulnerable Debtors

Law 5072/2023 amended the existing framework of Law 4738/2020, providing for presumed consent of creditors in the case of vulnerable debtors (provided that the relevant criteria are met and the relevant certificate has been issued). This regulation enhances the protection of vulnerable groups from the liquidation of their primary residence.

New Creditor Obligation Prior to Auction

The recent Law 5193/2025 introduces a particularly important innovation with Article 182, establishing the obligation of creditors to submit a settlement proposal to the debtor prior to auction, with the aim of providing a last opportunity for out-of-court resolution. This obligation is linked to the operation of electronic debtor notification systems.

Rapid Settlement of Micro-debts

For natural persons with zero income, no assets, and debts up to 20,000 euros, a rapid settlement procedure is provided, according to Circular 7698/2015. This is a process that can offer immediate relief and a definitive solution to thousands of over-indebted citizens.

Judicial Debt Settlement and Contract Confirmation

The judicial confirmation of a restructuring agreement, either within the framework of the out-of-court process or independently, constitutes a critical step for the legal security of the agreement. The hearing takes place under the voluntary jurisdiction procedure and offers suspension of enforcement measures for the period until a decision is issued.

Debts to Credit Institutions

Law 3259/2004 continues to provide a basis for direct settlement with banks, while determining the consequences of delay and non-compliance with agreements.

Useful Administrative Guidelines and Circulars

Circulars 30/2017, 116821/2017, and POL 1124/2017 provide crucial interpretative guidance for submitting applications, exchanging counterproposals between debtor and creditors, and the possibility of including debts to the State in restructuring.

Conclusion

The Greek legal system now provides an extensive and multi-level framework for debt restructuring, which can be utilized by both individuals and businesses. The appropriate strategic approach, timely legal support, and specialization in handling such cases become crucial for achieving a viable outcome.

Our office has the experience and expertise in designing and implementing legally secure and substantially efficient arrangements. We are at your disposal to support you with speed, accuracy, and effectiveness at every stage of the process.