Give a brief overview of the reorganization and insolvency regulation in Greece?

Rescue and insolvency procedures are governed by the Bankruptcy Code (statute 3588/2007). However, the compulsory winding-up proceedings of credit institutions and insurance undertakings are subject to sector-specific legislation. The Bankruptcy Code, as now in force, envisages that a distressed or bankrupt debtor may be subject to the following procedures:

• Rehabilitation process of articles 99 et seq.;
• Post-bankruptcy reorganization process of articles 107 et seq; and
• Post-bankruptcy liquidation process.

Post-bankruptcy proceedings aim to repay creditors and also, if possible, rescue and restructure an insolvent company’s business. On the contrary, pre-bankruptcy procedures aim at the reorganization of the debtor’s business and its continuation following an agreement with the majority of its creditors. The Bankruptcy Court, which supervises these proceedings, is a three-member court of first instance in the geographical region where the debtor has its key establishment.

1. Does Greek law include a special regime for individual’s bankruptcy?

Greek law, until recently, had no regime concerning individual’s (non-merchants) bank­ruptcy. Law 3869/2010, enacted on September 2010, was the first piece of Greek legisla­tion dealing with the issue of over-credited individuals, providing them with the option to achieve an official judicial settlement, concerning the debts they were not able to repay.