A draft law on personal bankruptcy, started by PD-L senator Iulian Urban together with other party colleagues last autumn, comes to regulate a sensitive field, that of foreclosures of loan defaulters at a time when tensions are high between debtors and bankers.
Over 10% of individual clients are currently late with their loan repayments, with the number of foreclosures initiated by banks now in the range of a few hundred per month.
At present, banks can largely foreclose on any asset and on any income earned by the debtor over an unlimited period of time in order to fully recover the debt, although this is not explicitly stipulated in credit contracts. The draft law, a 14-page document, provides for the creation of insolvency and bankruptcy proceedings for individuals, similar to those that companies are subjected to, whereby the debtor will benefit from a certain degree of protection and even from partial debt erasure, if their assets are not enough to cover the debt.
The draft law on personal bankruptcy, which allows individuals to file for insolvency if they are overindebted and cannot find their way out, was passed by the Senate with 72 votes in favour and only 3 against and now awaits a vote from the Chamber of Deputies, the final decision maker.
A draft law on personal bankruptcy, started by PD-L senator Iulian Urban together with other party colleagues last autumn, comes to regulate a sensitive field, that of foreclosures of loan defaulters at a time when tensions are high between debtors and bankers.
Over 10% of individual clients are currently late with their loan repayments, with the number of foreclosures initiated by banks now in the range of a few hundred per month.
At present, banks can largely foreclose on any asset and on any income earned by the debtor over an unlimited period of time in order to fully recover the d
