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The Chamber of Deputies adopted a proposal amending the Insolvency Act aiming to make debt relief available to a wider range of debtors incapable of repaying their debts in full.

According to the approved amendment to the Insolvency Act, the conditions for debt relief will be met if (i) the debtor has repaid their debts to the unsecured creditors in full, (ii) the debtor has repaid at least 60 per cent of their debts to the unsecured creditors within 3 years of being granted the debt relief, (iii) if the debt relief has not been cancelled for 5 years after being granted and the debtor has not breached their obligation to make every reasonable effort to satisfy their creditors’ claims in full, the debtor is deemed not to have breached this obligation if s/he has repaid at least 30 per cent of the unsecured creditors’ claims within that period. The amendment shall enter into force, with the exception of certain provisions, on 1 June 2019.