Government establishes home size thresholds for personal bankruptcy

Sustainability

The government has laid down home size thresholds for eligibility of personal bankruptcy in a decree published in the latest issue of the official gazette Magyar Közlöny, state news agency MTI reported.

 The thresholds are set at one living room for a single-person home, two rooms for a family with two, two-and-a-half rooms for a family of three and two rooms and two half-rooms for families of four.

The decree also sets "reasonable prices" for homes. It puts the price of a 55-70 sqm home with two-and-a-half rooms in the capital at HUF 14.8 mln and the price of a similar apartment in Hungaryʼs largest cities at HUF 9.3 mln. Rental fees for homes in a personal bankruptcy procedure are set at a monthly HUF 1,300 per square meter for a 55-80 sqm apartment in Budapest and at HUF 1,000 per square meter for such apartments in the biggest cities in the country. Personal bankruptcy rules came into effect as of September 1, 2015 for Hungarians whose homes could be repossessed. The rules will become universal from October 1, 2016. 

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