Best Bankruptcy & Debt Lawyers in Arta

About Bankruptcy & Debt Law in Arta, Greece

Bankruptcy and debt law in Arta operates within the national Greek legal framework and is applied by the local courts and authorities in the Regional Unit of Arta. Individuals, sole traders, and companies facing financial difficulty can use several tools to manage or resolve debt, including out-of-court debt settlement, business restructuring, and bankruptcy with a second chance discharge. Most consumer and business debts in Arta involve banks, loan servicers, public authorities such as the tax office and social security, and sometimes suppliers or landlords. Because procedures are time sensitive and document heavy, early legal guidance is important.

Why You May Need a Lawyer

You may need a lawyer if you are receiving enforcement notices, face a bank auction of your home or business property, or are being contacted by a loan servicer. A lawyer can assess whether out-of-court settlement is viable, negotiate repayment plans, and request temporary protection where available. Business owners in Arta may need legal help with rehabilitation agreements, cash flow workouts, or orderly wind down. If you are a guarantor, a lawyer can review the guarantee and explain your exposure. Legal advice is also essential if you have mixed debts to banks, tax authorities, and social security, or if you own property in Arta that could be seized. A lawyer will prepare filings, represent you before the courts in Arta, and ensure you meet strict deadlines.

Local Laws Overview

Greece uses a unified Insolvency Code that covers both individuals and businesses. The core law is the Greek Insolvency Code adopted by Law 4738-2020, often called the second chance framework. It provides for out-of-court debt settlement, pre-insolvency restructuring for businesses, and bankruptcy with a discharge for honest debtors. Pending cases under older laws may still be handled under those rules, but new cases follow the current code.

Out-of-court settlement is a structured negotiation that takes place on a government platform with banks, servicers, the tax authority, and social security. If a viable plan is agreed, it can include write-offs and long-term installments. During parts of this process there can be limited protection from new enforcement actions, but deadlines are short and cooperation is required.

Business rehabilitation agreements allow companies in Arta to restructure debts and continue operations. These agreements usually need creditor majorities and court confirmation. They can reduce or reschedule debts, terminate unfavorable contracts, and protect the business while the plan is implemented.

Bankruptcy applies to both individuals and companies. After liquidation of non-exempt assets, honest debtors can obtain a discharge after a set period. The discharge timeline depends on factors such as available assets and cooperation. Certain debts, such as family support obligations and criminal fines, are typically not discharged. Filing triggers a stay of most enforcement, subject to exceptions set by law.

Primary residence protection is not automatic. Vulnerable households may qualify for special certification and support. Depending on eligibility and availability of programs, there may be options such as subsidized payments or a leaseback solution after a sale, allowing continued residence while paying rent. Courts can also grant interim measures in specific cases, but strict criteria apply.

Enforcement in Greece includes wage or account garnishment and electronic auctions of real estate conducted by notaries through the national e-auction system. Greek law protects essential household goods and a basic portion of wages and pensions. A designated protected bank account can secure a basic amount each month from seizure, subject to statutory limits. If you receive an enforcement act in Arta, deadlines to object are short, and prompt legal action is necessary.

Loan servicers and banks must follow the Bank of Greece Code of Conduct for managing arrears. This sets steps for communication, assessment of financial data, proposal of sustainable solutions, and review of disputes. If you believe the Code has not been followed, there are complaint procedures and supervisory channels.

Public debts to the tax authority and social security can often be placed into installment arrangements if you meet the criteria. These can sometimes be combined with private creditor solutions, especially through the out-of-court process. Interest and surcharges may be reduced depending on the program used.

In Arta, cases are heard by the local courts that have subject matter competence, typically the Magistrate Court or the Court of First Instance, depending on the procedure. Filings, hearings, and service of documents are in Greek. Notaries in Arta handle formalities such as auction steps and certain out-of-court acts. Local Citizens Service Centers can help with certificates needed for applications.

Frequently Asked Questions

What is the difference between out-of-court settlement and bankruptcy?

Out-of-court settlement is a negotiated plan with creditors that aims to avoid court insolvency and keep you in control of your assets. Bankruptcy is a court process that leads to liquidation of non-exempt assets and a discharge of remaining debts after a period. Out-of-court is faster and less disruptive if creditors agree. Bankruptcy gives stronger protection and a clean break but is more formal and can affect assets and credit standing.

Can I protect my primary residence in Arta if I have mortgage arrears?

There is no blanket protection for all primary residences. Options include negotiating a restructuring with the lender, using the out-of-court platform, seeking vulnerable household certification for available support, or requesting interim protection when filing for insolvency. Results depend on income, property value, vulnerability status, and creditor cooperation. Act early because once an auction is scheduled, timelines are tight.

How do electronic auctions work, and can I stop one?

Real estate auctions are run online by notaries on a national platform. You receive formal notices of seizure and auction scheduling. In limited cases you can challenge procedural defects, seek a suspension, or negotiate a settlement that leads the creditor to cancel. Filing certain restructuring or insolvency actions may create a temporary stay, but it is not automatic for every case. Legal review of the file and strict timing are critical.

Which debts can be discharged in bankruptcy, and which cannot?

Most private and business debts can be discharged after bankruptcy, including many bank, supplier, and some public claims. Debts that generally cannot be discharged include family support obligations, criminal fines and penalties, and liabilities from intentional wrongdoing. Your lawyer will map each debt to the correct category under current Greek law.

How long does the bankruptcy process take, and when will I be discharged?

Timeframes vary based on your assets, complexity, and court workload. Many individual cases take from several months to a few years from filing to discharge. If there are minimal assets and full cooperation, the discharge period can be relatively short. If assets are sold, distribution and objections can add time.

I am a guarantor on a loan. Am I liable if the borrower defaults?

Yes. In Greece, a guarantor is typically jointly and severally liable. Creditors can pursue you if the principal borrower defaults, even if you did not receive the loan funds. You may seek your own restructuring, and in some cases you can challenge unfair guarantee terms. Review the guarantee wording and all notices with a lawyer.

Do I need to file in Athens, or can I handle everything in Arta?

Most filings can be made at the competent courts in Arta based on your domicile or business seat. Electronic platforms for out-of-court settlement are nationwide. Hearings and filings are in Greek. A local lawyer in Arta can represent you and coordinate any remote steps.

Can tax and social security debts be included in a debt solution?

Yes, these public debts can often be restructured through installment programs and can also participate in the out-of-court settlement if the legal criteria are met. In bankruptcy, public claims are included in the process, though certain public-law penalties may not be discharged. Always verify current program rules before applying.

What documents will my lawyer need to start?

Typical documents include identification, recent tax returns, property declarations, property tax assessments, cadastre or land registry records for real estate in Arta, loan and credit card statements, notices from servicers or notaries, enforcement papers, bank statements, proof of income and expenses, and a list of assets and liabilities. Accurate documentation leads to better outcomes.

Is legal aid available if I cannot afford a lawyer?

Greece provides legal aid to low-income individuals for certain civil and insolvency matters. If you meet the income criteria, you can apply for appointment of a lawyer at the court in Arta. Local bar associations may also offer duty lawyer or reduced fee schemes. Ask early because applications take time to process.

Additional Resources

Special Secretariat for Private Debt Management - information on the out-of-court settlement platform, vulnerable debtor certification, and debt tools.

Independent Authority for Public Revenue AADE - tax debt arrangements and information on payment plans.

Single Social Security Entity EFKA - social security debt installment programs.

Bank of Greece - Code of Conduct for loan arrears management and complaint channels for supervised institutions.

Hellenic Financial Ombudsman - mediation for disputes with banks, loan servicers, and financial firms.

Hellenic Consumer Ombudsman - assistance with consumer credit and marketplace disputes.

Arta Bar Association - local lawyer directory and information on legal services in Arta.

Citizens Service Centers KEP in Arta - help with certificates and online applications used in debt procedures.

National Cadastre Ktimatologio - property records needed for filings and negotiations.

National e-auction platform - information about scheduled auctions and relevant procedural details.

Next Steps

List your debts, creditors, and any pending enforcement dates. Gather key documents such as tax returns, bank statements, loan agreements, and property records. This helps a lawyer quickly assess options.

Schedule a consultation with a bankruptcy and debt lawyer in Arta. Ask about the pros and cons of out-of-court settlement, business rehabilitation, and bankruptcy in your specific situation. Request a clear plan and timeline.

If an auction or garnishment is imminent, tell your lawyer the exact dates and provide the notices you received. There may be urgent objections or interim measures to file.

Consider filing on the out-of-court platform if appropriate. Complete the financial data accurately and respond to requests on time. Keep copies of everything you submit.

Open channels with creditors and servicers. Communicate through your lawyer to avoid missteps and to ensure the Bank of Greece Code of Conduct is followed.

Explore public installment programs for tax and social security debts. Align these with any private creditor plan to maintain affordability.

Check eligibility for legal aid if you have low income. Apply promptly at the Arta court or through the designated process so you do not miss deadlines.

Stay organized and proactive. Debt problems often worsen with time, but early action in Arta can preserve assets, reduce stress, and improve your legal options.

This guide is informational and not legal advice. For advice tailored to your circumstances, consult a qualified lawyer in Arta.