Romania’s Parliament adopted the personal insolvency law.

This allows good debtors to open the personal insolvency procedure, and reschedule his debts based on a reimbursement plan, which can stretch over five years (with the possibility to extend it for another year), said social-democrat deputy Ana Birchall, who initiated this project, reports local Capital.ro.

The personal insolvency also helps Romanians in dire straits avoid adding additional debts, such as penalties or interest rates, to the initial one. The person who files for personal insolvency no longer runs the risk of foreclosure.

The Romanian Banking Association estimated earlier this year that the impact of applying the personal insolvency law would amount to some EUR 792 million for banks.

editor@romania-insider.com