Exploit in the most advantageous way the provisions of Law 3869/10 on “Indebted Households” (also known as “Katseli Law”) and protect your property from foreclosures and auctions. Our Law Firm undertakes all the procedures necessary for settling loan- and credit card- debts.


Settle all types of debts towards banks or individuals in a smart and effective way, by means of the legal support of our specialized partners of our legal office, who will propose the most customized solutions and the most appropriate handling of your case. 

1. Services  for individuals

  • Banking rearrangements of debts and interest rates through extrajudicial or judicial proceedings
  • Debt settlement towards third parties (contractors & individuals)
  • Law 3869/10 on “Indebted Households” (also known as “Katseli Law”)
  • Law suits against illegal and abusive terms, which banks impose in credit contracts; our aim is to identify any excessive charge through an economo-technical study
  • Dealing with illegal and unconstitutional pressures of debt collection companies (Law 4038/2012)
  • Defense against  orders of payment, lawsuits, foreclosures, auctions
  • Legal challenges in the fields of Civil, Commercial, Administrative, Labour, Criminal  Law by specialized law partners
  • Inheritance issues
  • Improvement of creditworthiness and planning of alternative funding sources
  • Mediation in dormant & longstanding issues of Civil, Commercial and Family Law, in accordance with the new Law 3898/2010.
  • Effective tackling of auctions and foreclosures by Banks, as well as national Social Security and Tax authorities.
  • Deletion of debtor or guarantor status in the main Greek credit profile system (“Tiresias”)

For more information contact us through our Contact Form

2. Law 3869/10 on “Indebted Households” (“Katseli Law”)

Probably the most effective procedure for indebted individuals, it aims at settlement of debts to banks and other individuals in line with the debtor’s level of income. The Law so far has proven very useful in an environment where most citizens have arrears. 

Adoption of this Law has been the subject of extensive discussions comprising a host of interventions and reactions (mostly on behalf of the banks), and was established in line with the European Central Bank’s positive opinion on 23/4/2010. Further amendments are expected during summer 2013 trough the introduction of the institution of mediation (Law 3898/2010).

Introducing the provisions of Law 3869/10 on “Indebted Households” by answering ten FAQs:


1. What is the Law’s objective?

The “Katseli Law” aims at regulation of debts of individuals in line with their income level, as well at the protection from auction of individuals’ owned primary residence. Three debt settlement plans are foreseen:

  • Monthly payments over 4 years (depending on income)
  • Monthly payments over 20 years towards the preservation of the owned primary residence, if such exists (depending on income); these are calculated based on 85% of such property’s commercial value.
  • Sale or exploitation of other real estate


2. Who can be subject to these regulations?

The Law applies only to individuals who are not eligible to file for bankruptcy capacity, i.e. at the time of payment suspension they had no business activity. Debt classification as ‘commercial’ or as ‘private’ is of no importance; what matters is solely the status of the individual and the point in time when those with business activity found themselves indebted.


3. Which types of debts does the Law concern?

The law covers all types of debts, both to banks and individuals, with the exception of:

  • Debts arising from tort
  • Bank checks, bills of exchange
  • Debts to the national Tax and Social Security authorities
  • Debts incurred in the year preceding the application for debt settlement


4. Where is the relevant application form submitted?

In the District Court having jurisdiction over the geographical are of the debtor’s primary residence.


5. What about forced execution measures (e.g. payment orders, foreclosures, auctions)?

Submission of an application does not bring forced execution measures to a halt; injunction proceedings have to be initiated, in order to protect the debtor.


6. After submitting the application, can one settle and pay off debts? 

The Law emphasises the concept of extrajudicial settlement, which is set as the basic precondition for submission of the application form at the District Court. Debtor and creditor can arrange a settlement during any stage of the procedure, even on the day the case is tried in court.


7. What about people who are unemployed, or people who are facing chronic health problems or people who are extremely poor? 

The Law does not consider deterioration of living conditions as a prerequisite towards debtor’s eligibility to its provisions, but focuses on the ability to maintain a decent livelihood.

Thus, article 8 / paragraph 5 of the Law provides that the long-term unemployed (more than 2 years), or those who have serious health problems, or those who risk losing their decent livelihood, can fall under the ‘zero payments’ arrangement over a period of time (until they manage to improve their financial status) and finally can be adjudicated to pay miniscule monthly instalments.


8. Can a debtor protect another real estate apart from the owned main residence?

The Law protects exclusively the main residence. Any other movable or immovable property of the debtor will be liquidated by a trustee appointed by the Court. However, it can order that real estate other than the main residence, instead of being sold, are commercially exploited in order to repay loans.


9. When does a discharge of debts occur?

As long as the debtor adheres to the debt settlement schedule outlined by the District Court (payments within four years; preservation of primary residence over 20 years), she/he is released from any debt amount not covered by the above payments.


10. What about guarantors?

Guarantors are liable with their own personal movable and immovable property for the debt he guarantees; hence it is advisable that they also submit an application to be included in the provisions of the “Katseli Law”, otherwise they will be as liable as the main debtor.

Our Law Firm’s specialised lawyers and economists can undertake all necessary actions to inform you, and to prepare and submit an application for inclusion in the provisions of Law of 3869/10.

[see the Law text] (link)

Relevant Documentation: 

  • Sample application for extrajudicial debt settlement 
  • Sample certificate of unsuccessful extrajudicial settlement
  • Sample assets declaration form

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