Out-of-Court Settlement: Debt Relief for Two in Three Debtors

A significant increase in the approval of debt settlements through the out-of-court mechanism has been recorded following the changes introduced in May. According to data, two out of three debtors receive debt relief, while repayment installments range from 180 to 312.

The new debt settlement regulations, which began to be implemented in May, have led to a doubling of approvals compared to the previous period. Major servicers recorded a 103% increase in the approval of debt settlement applications.

Indicatively, credit institutions now handle up to 500 applications each month, while before the changes they evaluated 300-350 settlement proposals monthly. From the first month of implementation of the changes, the monthly number of applications evaluated by the 10 largest loan claim managers increased by an average of 63%.