Govʼt submits family bankruptcy protection bill


Hungary’s Christian Democrat Party (KDNP), which is in coalition with the ruling Fidesz party, yesterday submitted a bill to Parliament that would protect families with debts from bankruptcy, Hungarian news agency MTI reported today.

Under the bill, insolvent Hungarians with debts, including interest and fees, between HUF 2 mln and HUF 60 mln, would be allowed to file for personal bankruptcy, exempting their assets from debt collection. Debtors and lenders would have an incentive under the rules to first reach an agreement on repayments among themselves, the bill states, adding that the agreement could involve a restructuring of debt, an exemption from late payments or a partial discharge of debt. If debtors and lenders fail to reach an agreement, a court would act as an arbitrator.

The bill would also limit eligibility for personal bankruptcy to Hungarians whose debts do not exceed twice the value of their assets and the income they expect to use for repaying their lenders over a period of five years. It would also require at least 80% of the debts to be undisputed and limit the number of lenders to whom the borrower is indebted to five years.

Bence Rétvári of KDNP said earlier that the assistance would only be available to those who apply. Hungarians who file for personal bankruptcy would be prohibited from filing again for a period of ten years from the close of the previous procedure, MTI added.

The personal bankruptcy rules would come into force from September 1, 2015 for Hungarians whose homes could be repossessed. The rules would become universal from October 1, 2016.


Hungary to Expand Gripen Fleet With 4 Aircraft Analysis

Hungary to Expand Gripen Fleet With 4 Aircraft

Lawmakers to Vote Monday on New President Parliament

Lawmakers to Vote Monday on New President

High-tech Ratio in Hungarian Industry Rising Innovation

High-tech Ratio in Hungarian Industry Rising

Hungarians Prioritizing Travel Over Renovations This Year Tourism

Hungarians Prioritizing Travel Over Renovations This Year


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.