A heart for debtors: the debate on the restructuring procedure:
The National Council follows Justice Minister Beat Jans and wants to allow debt relief for ...
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Parliament Approves New Debt Relief ProcedureUp to 11,000 debt restructuring cases are expected annually, with debtors giving income above subsistence for three years.
- The National Council approved a debt restructuring process allowing insolvent individuals to have remaining debts forgiven after surrendering income above basic needs for up to three years.
- Opponents argue this sets a dangerous precedent by undermining contract enforcement and potentially rewarding irresponsible borrowing.
- Supporters describe the measure as beneficial for both creditors, who avoid total losses, and debtors, who gain incentives for financial recovery.
- The law limits the procedure to one lifetime use and mandates that inheritances or lottery winnings be included indefinitely in the debtor's estate.
It is wrong to live beyond your means; do not incur debts, only afford what you can really afford.— Justice Minister Beat Jans speaks about responsible financial behavior.
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