Best Bankruptcy & Debt Lawyers in Arta

About Bankruptcy & Debt Law in Arta, Greece

Bankruptcy and debt matters in Arta are handled under Greece’s national insolvency framework, applied by the local courts and authorities that serve the Arta regional unit. The current system centers on Law 4738-2020 on Debt Settlement and Second Chance, which unifies the rules for both individuals and businesses. It provides pre-insolvency tools to restructure debts, a formal court insolvency process that can lead to reorganization or liquidation, and a path to discharge for individuals who meet the legal conditions.

People and companies in Arta generally start with negotiations and structured settlements with banks, loan servicers, suppliers, and public bodies such as the tax authority and social security fund. Where out-of-court solutions are not feasible, court-supervised procedures are available. Electronic auctions and enforcement measures are run nationwide, and local steps like service of documents and asset investigations are carried out by bailiffs and the courts of Arta. The overall goal of the law is to encourage early restructuring, protect viable activity, and offer a second chance to honest but insolvent debtors.

Why You May Need a Lawyer

You may need a bankruptcy and debt lawyer in Arta if you are facing mounting arrears with banks or loan servicers, repeated collection calls, or threats of enforcement. A lawyer can advise on your rights, evaluate settlement proposals, and negotiate with creditors under the Bank of Greece Code of Conduct for loan restructuring. Legal help is crucial if you receive a payment order, seizure notice, or auction notice, because deadlines to oppose enforcement can be very short. A lawyer can file timely objections, seek interim protection, and guide you through court procedures.

Business owners often need counsel to manage supplier pressure, bouncing checks, tax and social security debts, and director liability risks. A lawyer can prepare a restructuring plan, use the extrajudicial debt settlement platform, or pursue a formal reorganization. For individuals, a lawyer can assess eligibility for the second chance discharge, plan for protection of the family home where possible, and coordinate with the public sector on tax and social security arrangements. Legal advice is equally important to avoid pitfalls such as fraudulent transfers, preferential payments, or omissions in filings that could jeopardize your case.

Local Laws Overview

Law 4738-2020 sets the framework for Greek insolvency and applies in Arta. It includes an extrajudicial debt settlement mechanism that allows individuals and businesses to negotiate a multilateral restructuring with banks, loan servicers, the tax authority, and the social security fund. The process is digital, uses standardized financial data, and can lead to a binding agreement if legal voting thresholds are met. In eligible cases, enforcement by participating creditors may be paused while negotiations proceed.

For court procedures, the law provides for reorganization of viable businesses and bankruptcy liquidation when rescue is not feasible. Individuals can obtain a discharge from residual debts after a defined period, typically three years from adjudication, which can be shorter in cases where all non-exempt assets have been liquidated and certain conditions are met. The framework includes safeguards for vulnerable borrowers, including a sale-and-leaseback option for the primary residence for those who meet statutory vulnerability criteria and receive a housing benefit, as provided by special legislation.

The Bank of Greece Code of Conduct sets standards for how banks and servicers should assess hardship, propose sustainable solutions, and communicate with borrowers in arrears. Law 3758-2009 regulates debt collection agencies and prohibits abusive or harassing practices. Consumer protection law addresses unfair contract terms and transparency in credit agreements. Enforcement of debts follows the Greek Code of Civil Procedure, with payment orders, seizures, and electronic auctions conducted on a national platform. Pending cases under previous laws, including earlier frameworks for over-indebted individuals, continue under transitional provisions.

Locally, the First Instance Court of Arta and the Magistrate Court handle filings and enforcement disputes within their jurisdiction, while appeals typically go to the Court of Appeal that covers the Epirus region. Bailiffs, notaries handling auctions, and local branches of tax and social security authorities operate in and around Arta. Free legal aid is available to eligible low-income applicants under Greek law, which can help cover legal representation in debt matters.

Frequently Asked Questions

What is the difference between extrajudicial settlement and bankruptcy in Greece

Extrajudicial settlement is a structured negotiation outside court that can produce a binding restructuring agreement if creditors approve. Bankruptcy is a court process that can lead to reorganization or liquidation, with court supervision, creditor voting on plans where applicable, and a potential discharge of remaining debts for individuals after the statutory period.

Who can use the extrajudicial debt settlement mechanism

Both individuals and businesses with debts to financial institutions and or public bodies can apply if they meet eligibility criteria and can provide complete financial data. Creditors such as banks, loan servicers, the tax authority, and the social security fund may participate, enabling a single consolidated arrangement across multiple debts.

Can I protect my primary residence

There is no universal immunity for primary residences. Protection depends on your situation and the law in force. Vulnerable borrowers who meet statutory income and asset criteria may access a sale-and-leaseback scheme with a state-supervised entity and a housing benefit. In other cases, protection depends on negotiated settlements, court measures, or restructuring plans. Timely legal advice is essential if an auction is scheduled.

How long does it take to be discharged from debts if I go bankrupt as an individual

Under Law 4738-2020, discharge generally occurs three years after bankruptcy adjudication. A shorter period may apply if all non-exempt assets are liquidated and specific conditions are met. The court can also refuse discharge for dishonest conduct or other statutory reasons.

What happens if I receive a payment order from a bank or servicer

Payment orders have short objection deadlines. You should contact a lawyer immediately. A lawyer can assess defenses, file an opposition within the legal time limit, and seek a stay of enforcement where appropriate. Missing the deadline can make enforcement much harder to challenge.

How are tax and social security debts treated

They can be included in extrajudicial settlements and in formal insolvency proceedings, subject to specific public law rules. Outside insolvency, there are administrative installment plans for tax and social security debts. During enforcement, the state has strong collection powers, so early engagement and structured solutions are important.

What documents will I need to start a debt solution

You will typically need identification, recent tax returns, income statements, bank statements, loan agreements and balances, notices from creditors, property titles, vehicle registrations, business financials if applicable, and any court or enforcement documents. Having a complete and accurate picture of your assets, debts, and income is crucial.

Will bankruptcy affect my business and my role as a director

Yes. Bankruptcy can lead to liquidation of business assets or a court supervised reorganization. Directors have duties to avoid worsening creditor prejudice and can face liability for misconduct. There is also a simplified insolvency track for small or micro enterprises that streamlines procedures. Legal advice can help protect the going concern value and manage director risks.

Are debt collection calls regulated

Yes. Greek law regulates debt collection agencies and prohibits harassment, misleading statements, and undue pressure. There are rules on when and how often agencies may contact you. You can complain to the competent authorities if you experience abusive practices.

Can I stop an auction of my property

It may be possible to suspend or postpone an auction through negotiated settlement, payment plans, or court measures if the legal grounds exist. Success depends on timing, the status of the case, and the merits. You should seek legal help as soon as you receive any auction notice or enforcement action.

Additional Resources

Special Secretariat for Private Debt Management - information and the digital platform for extrajudicial debt settlement and support services for debtors.

Independent Authority for Public Revenue AADE - local tax offices handle tax debts, installment plans, and enforcement notifications.

e EFKA - local social security branches manage contribution debts, arrangements, and certifications.

Bank of Greece - supervision of banks and loan servicers and the Code of Conduct for arrears management, with complaint channels for banking disputes.

Hellenic Consumers’ Ombudsman - independent authority assisting consumers in resolving disputes with businesses, including financial services.

Greek Ombudsman - institution for grievances against public authorities involved in debt collection and enforcement issues.

Bar Association of Arta - professional body that can help you find licensed lawyers in Arta who handle bankruptcy and debt matters.

Local Mediation Centers and certified mediators - alternative dispute resolution services that can facilitate structured settlements with creditors.

Legal Aid program for low income individuals - court appointed legal assistance for eligible applicants in civil and commercial cases.

Arta Chamber of Commerce and local business support services - guidance for business owners on financial distress, restructuring, and compliance.

Next Steps

Make a full list of your debts, including banks, loan servicers, suppliers, tax, and social security. Gather all documents such as contracts, notices, statements, and court papers. Prepare a simple budget showing your income and essential expenses.

Schedule a consultation with a bankruptcy and debt lawyer in Arta. Ask about the extrajudicial debt settlement mechanism, the feasibility of court reorganization or bankruptcy, and immediate steps to manage enforcement risk. If you have received a payment order or auction notice, tell your lawyer the service date so deadlines can be met.

Consider reaching out to the Special Secretariat for Private Debt Management for guidance on the digital platform and to check if you may qualify as a vulnerable borrower. If you meet income criteria, ask your lawyer about applying for legal aid to cover part of your costs.

Do not transfer assets, make selective payments to favored creditors, or ignore official notices. Keep communication professional and documented. If a bank or servicer proposes a settlement, have your lawyer review it for sustainability and legal effects, including guarantees and collateral.

Work with your lawyer to choose the right route: negotiated settlement, extrajudicial mechanism, reorganization, or bankruptcy with a path to discharge. With timely action and informed advice, you can minimize damage, protect essential assets where the law allows, and move toward a sustainable fresh start.