New bill on debt payment tabled, but 120 tranches are off limits for most

With a significant delay, the government on Monday submitted to Parliament the bill outlining a new scheme for the settlement of debts to the state, social security funds and local authorities in up to 120 installments.

Under the new legislation, individual debtors declaring a total annual income of up to 10,000 euros will have the opportunity to pay off their arrears in up to 120 monthly tranches, with a minimum value of 30 euros per tranche.
For debtors with incomes above 10,000 per year, the number of tranches will be determined by the tax administration based on each debtor's personal income in 2017 and the amount of the debt that will be put up for settlement under the new arrangement.

However, for the vast majority of debtors, such as those who have arrears of up to 3,000 euros and incomes of up to 10,000 euros a year, the 120 installments are a pipe dream....