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

Debt release orders secured

debt relief ordersTHE INSOLVENCY Service has managed to secure fifty six debt release orders (DRO) for debtors who were unable to repay dues of up to twenty five thousand Euro, as a result of the economic crisis.

So far 1,019 applications have been submitted from citizens who request a debt write-off, head of the Insolvency Service Costas Karotsakis has told the CNA.

“Consequently, fifty six families without income or important assets that could be used to repay their debt, have been rid of unsecured debts of up to twenty five thousand Euro, both them and their guarantors” Karotsakis noted.

As a result of the efforts, he said, the World Bank in its ‘Doing Business’ report currently ranks Cyprus 16th in resolving insolvencies; Cyprus ranks 9th among EU member states.

He also said that several cases are pending before the district courts and as a result it is expected that the number of the rulings will increase.

However, according to Karotsakis the number of companies making use of the debt restructuring tool is low and as a result only three cases have been led before the courts and one of them has been withdrawn.

In addition, he said that the Insolvency Service has received thirty eight applications for personal insolvency arrangements, noting that “restructuring a debt through a personal insolvency arrangement can secure the repayment of the creditors and maintain, where that is possible, the primary residence”.

According to Karotsakis more than 8,600 persons have been removed from the bankruptcy record with the aim of re-integrating them into economic activity.