The personal insolvency law didn’t enter into force on October 31 as the Parliament had previously decided, as President Klaus Iohannis asked the MPs to review their decision to bring forward the law’s enforcement date by two months.

The law can’t be applied in the absence of an adequate organizational and functional framework, Iohannis said.

The Government had initially decided that the law would enter into force only at the end of December this year, as it needed time to prepare the framework, but the Parliament voted to speed up the process by two months.

Iohannis, however, said that the timeframe is not sufficient for the institutions and authorities involved in applying the law to carry out their activity. An earlier deadline, even by two months, can affect the process of allocating the necessary budgetary and human resources, the president explained.

According to the law, the Romanians who have problems in repaying their debts will be allowed to declare their personal bankruptcy. They will be able to reschedule their debts over five years, and undergo a liquidation procedure in front of the court.

editor@romania-insider.com