570 Croats have filed for bankruptcy to date

Since the start of this year, when legislation enabling individuals to declare bankruptcy took effect, as many as 570 applications for personal bankruptcy have been filed with the state-run Financial Agency (FINA).

Filing personal bankruptcy precedes proceedings to that effect before courts, according to FINA.

The new legislation on consumer bankruptcy went into force on 1 January 2016, and the law is perceived as an attempt to give over-indebted citizens a chance for a fresh start and offer them an opportunity to repay debts in a controlled manner.

All insolvent persons, that is individuals and micro business owners, can file for bankruptcy if for three straight months they have not been able to pay their debts which exceed HRK 30,000. The upper limit of the debt for this type of bankruptcy proceedings is HRK 100,000.

Before filing for bankruptcy, a debtor first has to attempt to settle with the creditors out of court before a FINA advisory body, but if no agreement is reached, the proceedings continue in court, with the consumer getting another chance to settle with the creditors. If no court settlement is reached, the court appoints a trustee to divide the consumer's estate and represent a bridge between the court, the consumer and the creditors.

According to FINA, 569 individuals and one micro business owner have filed for personal bankruptcy so far.

Their debt on aggregate is 235.3 million kuna, and the number of their creditors stands at 2,271.

(EUR 1 = HRK 7.47)

Last update: Tue, 02/08/2016 - 10:58
Author: 

More from Croatia

A quarter of commercial pilots have left Croatia in past 4 years

International Civil Aviation Day is observed on 7 December worldwide and this has been an opportunity for the trade...

Joulupukki, or Santa Claus, comes from Finland to Zagreb

Joulupukki, a Finnish Christmas figure.

Croatia launches trilateral cooperation in Adriatic with Montenegro and Albania

Croatia has launched trilateral cooperation with Montenegro and Albania in the economy and environmental protection...

Croatian President: Thousands of IS fighters returning to Bosnia

Croatian President Kolinda Grabar-Kitarovic said in Dubrovnik on Tuesday that one should face the fact that...

Croatia's food industry records 43.7% increase in net profit

Croatia's food industry generated a consolidated net profit of HRK 931.5 million in 2015, which was an annual...