More than 850,000 Romanians have been bankrupt in the last four years, but Romania lacks the legislation to support these people, according to lawyer Gheorghe Piperea, known for having won cases in court against banks in Romania.

If Romania decided to officially enforce the personal bankruptcy law, which is currently being analyzed in the Parliament, these people could be helped, Piperea said, quoted by Agerpres.

He further explained that, similar to the reorganization plan for companies under insolvency, individuals too can be given a debt reduction, and placed under a tight cost control and monitoring, and helped get back on their feet.

Even for those who have bought houses with mortgage loans solutions can be found, including allowing them to stay in the house and pay a rent until they manage to find another house, instead of just kicking them out.

For the time being, the bankruptcy law in Romania is being opposed by the International Monetary Fund and the European Commission, which is hardly understandable, as other countries enforced these laws, said Piperea.

The Romanian Government recently decided that Romanian individuals with bank loans and a monthly income under the average wage of RON 1,610 (some EUR 360) may have their monthly rate installments cut by half for a period of two years, but with the limit of RON 500 (over EUR 110).

The facility can be granted to all individuals, employees or pensioners, only if they have a monthly income under the average wage and debts more than 90 days overdue to banks. Banks would however need to give their voluntary consent for this measure

editor@romania-insider.com