- Cyprus Property News Magazine - http://www.news.cyprus-property-buyers.com -

Insolvency service ‘inundated’

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.