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Insolvency service ‘inundated’

The newly established Insolvency Service, which was set up by the Cyprus government as part of the insolvency framework agreed with the troika, has been inundated with requests for information.

insolvency serviceTHE GOVERNMENTAL Insolvency Service has been inundated with information requests about the debt forgiveness scheme, the head of the service said on Thursday.

Giorgos Karotsakis told the state broadcaster that over the last week alone hundreds of people have been downloading the printable debt forgiveness applications available online.

The service’s website crashed and went offline for two days because of the high traffic.

“These are people who have tried other avenues, who are desperate,” Karotsakis told CyBC.

The application form consists of several pages.

Under certain criteria, borrowers are eligible for an up to €25,000 debt forgiveness from banks, and up to €2500 on tax dues.

A borrower may file a request for debt relief, along with a sworn statement, with the government’s insolvency service.

This applies to persons with net monthly income of up to €200 and owning assets worth up to €1000 (not including reasonable living expenses).

If the insolvency service is satisfied that the applicant meets the criteria set out under the law, it then issues a certified statement and the borrower will be represented in court for the issuing of a debt relief order.

Unless the creditor (bank) responds within 21 days of the filing of an application, the court will by default issue a debt forgiveness order.

Readers' comments

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  • shelagh says:

    I can not find any information on the link you gave. Is there any other way of getting these forms?

    (Editor’s comment: I suggest you visit your local Citizens’ Service Centre – they should be able to help.)

  • Achilleas Emilianou says:

    Can you please provide the website address of the Government Insolvency Service

    Congratulations on your reporting I find it very useful and informative.
    Regards

    (Editor’s comment: http://www.mcit.gov.cy/drcor seems to be a good starting point.)

  • Steve R says:

    WHAT !!!!!. This law isn’t aimed at ex-pats from any country. It will only benefit locals who have got into debt and can say they are living with relatives. Cash is still king in Cyprus. €200 euro a month will not even pay the rent on even the smallest of flats. We need the banks to be responsible for some of the Swiss Franc loans they sold to unsuspecting ex-pats.

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