The Insolvency Office of Individuals of the National Authority for Consumer Protection (ANPC) reminds consumers who have obtained loans, accumulated debts and can no longer face them, that they can appeal to the special bankruptcy procedure for individuals provided for by Law no. . 151/2015.

• Individuals who have passed the standard retirement age and have lost half or all of their capacity to work can benefit from debt relief, as long as it is worth a maximum of 10 minimum wages per economy.

During the periodic meeting of the Central Bankruptcy Commission – a body that brings together representatives of the ANPC, the Ministries of Finance, Labor and Social Protection, Justice and the National Trade Registry Office – held on August 10, 2022, with the participation of Vice President Sebastian Hotch’s ANPC, discussed the current conditions provided by Law No. 151/2015 and the possibility of amending it in the upcoming parliamentary session.

• Read also: “My dear creditor, I am bankrupt”

This step is necessary so that the legislation in this field is updated according to the economic evolution at the moment, so that as many consumers as possible have access to the three types of procedures.

“We want the accessibility of personal bankruptcy procedures to be as close to consumers as possible, and for this and other clarifications, we are waiting for them in our offices throughout the country to provide them with free advice and support” – Ruksandra Badea, director of the Office of issues of insolvency of individuals

Due to the bankruptcy procedure of natural persons, the situation is regulated when the debts of natural persons can be repaid in installments for 5 years with the possibility of extension for another 1 year. Individuals who have traceable assets or income and do not qualify for a repayment plan-based procedure can opt for a liquidation of assets procedure.

• Read also: A Romanian family living in Madrid was able to cancel their €60,000 debts in Spain with the help of personal bankruptcy law

Individuals interested in accessing these procedures can find information on the ANPC website or contact the regional bankruptcy offices of the District Consumer Protection Commissioners

What is the legislation on the insolvency of individuals

Accepted with great difficulty by bankers and criticized by the IMF, the law was published in the Official Gazette on June 26, 2015 and was supposed to enter into force six months after its publication.

The head of the National Bank of Romania, Mugur Isarescu, then had a position favorable to the law. “We are in favor of the law on bankruptcy of individuals. (…) Look how it was with the bankruptcy law (…) Let me tell you what bad law means. Bankruptcy law was legalized by legal entities, right? And we have reached such a situation: the company becomes bankrupt, but the main shareholder is allowed to start another company the next day. Well, what does this mean, if not to encourage payment indiscipline? This is valid in Romania. So, the personal insolvency law must be well drafted, a law that can be applied,” Isarescu said when asked if the personal bankruptcy law would lead to a balance of power in individual negotiations between individual clients and banks, decisions, proposed by the central bank.

However, none of the steps provided by the law were taken. The law provided for very clear deadlines related to these steps that had to be taken: the commission was not created at the central level, the methodological rules for the application of the procedures had to be issued in 60 days, the professional bodies had to be issued. established in 5 months. Therefore, the Government was forced to postpone the application of this law.

The law applies to bona fide individuals whose debts are the result of activities aimed at satisfying personal needs, such as debts to utility providers, late payment of bank payments under a contract for the purchase of a personal service or goods, etc., and not from a business that aims to profit.

In a situation where the debtor considers himself insolvent (because he does not have the liquidity to repay the due debt – the state of insolvency can be taken into account if the debt payment term is exceeded by more than 90 days), but if his financial situation has not deteriorated irreversibly, he can apply to Bankruptcy Commission to open a bankruptcy case based on a debt repayment plan, which is an administrative, not a judicial, process. At the same time, the minimum amount of debts should be 15 minimum wages per household.