Debt Consultants

Debt Consultants

The Financial Advisors of CPA help you manage your financial affairs in order to achieve your financial targets. In foreign countries, it is a daily occurrence to be represented by special negotiators who are fully responsible for negotiating a settlement of cases, through an out-of-court settlement with the ultimate aim of reaching an advantageous agreement.

Negotiation & agreement through an out-of-court settlement

Due to the recent changes we are experiencing in the economy, as well as the continuous alternating flow of data in the banking system, successful management of each debt is required to be carried out through specialized financial advisors. At CPA, the experience of consultants is great and thats why we ensure that the best possible agreement can be reached, through negotiations undertaken entirely by our executives.

Our main strategic pillars are:

  • The guarantee of a high advisory service and the management of negotiations
  • Our well-documented analysis of the solutions that can be achieved and implemented
  • The technical and strategic planning of managing your case
  • Avoiding conflicts and misstatements
  • Experience through management of the whole range of bank loans by our executives

Legal Framework 

The new legislative framework for individuals and businesses gives relative flexibility with the application of three pillars, the settlement through mediation, the settlement of debts through out-of-court and the the third being bankruptcy, depending on the specificity of each case and the needs of each debtor. The opportunity called the “Second Chance” concerns debtors with debts to independent public revenue authority (AADE), insurance funds, banking institutions, other public institutions which they will have to settle at a certain time by special procedures and if they do not succeed, they are obliged to carry out bankruptcy proceedings and liquidation of their property. For the first time a bankruptcy framework will be applied in Greece for individuals. Regarding businesses, the new law incorporates the out-of-court mechanism, through specific changes related to the size (turnover, financial figures, assets) of the company and debtors, as well as the percentage of creditors who have to start bankruptcy proceedings.

Debt Settlements and Settlements Procedures 

Debtors (individuals and legal entities) will be able, to settle all their debts (Public, Insurance Funds, Loans, DECO and other creditors, etc.) in a comprehensive arrangement. The procedure which CPA proposes is:

  1. First, assess the total debt
  2. Secondly, restructure it in the way proposed by the advisors and according to the debtor’s financial capacity 
  3. Thirdly the total assets management. During the restructuring planning, CPA’s advisors are working with the banks and the special-purpose management companies to find an appropriate solution to be presented in the final draft regulation.

This method will create a debt management tool, based on its total income, cash flows and overall asset structure, so that the debtor -with his sustainability study- can cope in the future with the repayment of the total debt. In the settlement of public and insurance funds’ debts, the individual arrangements will be merged into one, subject to the strict condition that the protection of the first residence is abolished. The arrangement will be made out of court, and the submission will be made via an e-platform. With the information that the platform will draw from its related parties (AADE, banks, EFKA, land registry, etc.) and after processing them by creditors, it will be offered a total cost proposal, which will vary in terms of the amount its instalment, but also the number (of instalments) for each creditor.

Bankruptcy Procedure 

If the debtor chooses to go bankrupt or has no other solution found to conceal assets and financial assets or don’t be cooperative for settlement, then he will face the liquidation of his property in order to repay the creditors. An important point to be stressed, is t what’s going to happen to the remaining part of the debts, if they are not covered during bankruptcy. Particularly, if the value of the property falls short of the debts, the remaining part of the debts will be settled. Deletion (haircut) of the balance of debts that will remain after and liquidation by the creditors of the property, will be provided in the new bankruptcy arrangement, and will be given to those who really do not have income and property whether they “did not have act fraudulently”. In other words, there isn’t an arrangement opportunity of debt, to those who could service their debts by regulating them and they didn’t, so consciously are strategic bad payers. It should be noted that in the event of bankruptcy, the beneficiary will have the right to transfer his main residence to the Acquisition Agency and to lease it from that public authority with a lease term set at 12 years. When the debtor pays all the rents for the duration of the lease, then he will be entitled to the transfer of ownership, at a price equal to the current commercial value. Amounts paid as rents shall not be deducted from the purchase price. Finally, it should be noted that, if the beneficiary is found to be a vulnerable person, he will be entitled to housing benefit.

Our services

  • Analysis of data in order to evaluate the exact economic position
  • Planning and implementation of proposals for debt settlement
  • Mediation with debtors and creditors and achievement for the best possible agreement
  • Full representation of cases in banking institutions and other financial institutions
  • Processing of out-of-court debt settlement and “Second Chance” procedures in accordance with Law 4738/20
  • Controlled inclusion in bankruptcy proceedings by eliminating total debts
  • Negotiation techniques adapted to multilateral negotiations, emphasis on the specificities of the debtor-lender relationship
  • Restructuring of debts and sustainability study report

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