Insolvency (Amendment) Act as of 1 June 2019
Responding to the debt situation of a significant number of debtors caught in a debt trap, the amendment allows private individuals to be discharged from bankruptcy subject to the satisfaction of less strict conditions. A bankruptcy discharge will be issued by a court if the court is satisfied that the debtor has sufficient income equalling at least the sum of unattachable amount and monthly administrator’s and creditor’s fee and that the debtor made all reasonable efforts to pay off his or her debt within the set time limit.
The amendment provides for bankruptcy discharge in three cases:
• If the debtor has paid back all of the total unsecured claims against the debtor.
• If the debtor has paid back at least
60% of the total unsecured claims against the debtor within three years of the approved bankruptcy discharge.
• If the debtor has paid back at least 30% of the total unsecured claims against the debtor within five years of the approved bankruptcy discharge or has made all efforts to satisfy the creditors.