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Few file for personal bankruptcy protection

Hungarians have made 980 filings for personal bankruptcy since the procedureʼs introduction in the autumn of 2015. The debt threshold is HUF 60 million, but the majority of the filings were related to much less than that, according to state news wire MTI.

Personal bankruptcy rules came into force from September 1, 2015, for Hungarians whose homes could be repossessed. The rules became universal from October 1, 2016. Since then, the court has approved 175 of the filings and is still processing another 118. A further 151 filings are under preparation for submission to the court, Pál Völner, state secretary at the Justice Ministry, said in a written response to a query by an opposition MP posted on the website of Parliament.

The court rejected 121 filings and out-of-court agreements were reached in 27 cases. Preparations are underway to settle a further 388 cases out of court. Filers were, on average, HUF 19 mln in debt, but some had debt close to the HUF 60 mln eligibility threshold.

The Justice Ministry has spent HUF 38 mln on the system for processing personal bankruptcy filings this year. Last year, it spent HUF 120 mln on the system, MTI noted.