Law 4738/2020 provides for the possibility for all natural persons to be discharged from debt within three years of the declaration of bankruptcy unless they are checked for fraudulent actions or refuse to cooperate with the bankruptcy authorities. In the event that natural persons who go bankrupt contribute to the bankruptcy estate items of significant value, such as e.g. their main residence, the discharge occurs faster, after one year has passed since the declaration of bankruptcy. In this way the law responds to the suggestion of the Restructuring and Insolvency Directive to apply the debt relief provisions to consumers as soon as possible.

In particular, the out-of-court conciliation process, a confidential process between financial institutions, the State and the Social Security Institutions, is expected to contribute to the avoidance of the insolvency of very small and small enterprises ("PMME"), which is expected to facilitate the rapid formulation of proposals to debtors for the restructuring of their lending to the entities participating in the specific process.

In cases of possible insolvency of larger companies or debtors in general whose viability requires interventions beyond the cancellation of claims or their settlement, the preventive framework of consolidation is available, which has been adapted to the provisions of the Restructuring and Insolvency Directive.

The bankruptcy process is significantly simplified, while the liquidation of the bankruptcy estate is accelerated. The process of special administration for the liquidation of operating groups is integrated into the new bankruptcy procedure as an option available to the bankruptcy court when declaring bankruptcy, provided that a sufficient percentage of creditors including guarantees agree. Facilitating debt relief for entrepreneurs prevents them from being excluded from the labor market and offers them the opportunity to start a new business by learning from past experiences. Equally important is the release of the other debtors from their debts, as it allows them to social and economic reintegration without the burden of debts they cannot cope with.

Therefore, the proposal is assessed as implemented.