Law for bankruptcy amend: “No first house seized”

“The law allows persons with one home to renegotiate the loan, if the court finds it reasonable. The second apartment is considered a business asset, not a home”, declared Klajdi Mati, Director of the Supervisory Agency of Bankruptcy.

Individuals in difficulty who apply for bankruptcy will negotiate the loan conditions and will be liberated from many obligations.

“Individuals will have their credit cards discharged. It has not been decided yet about medical bill. Maybe the insurance bills”, Mati says.

Those individuals who benefit will not be allowed to take any more loans for 9 years. The new draft also facilitates the bankruptcy procedures even for businesses, focusing more on reorganization rather than closure.

“We have changed the procedures of requests. We have changed the payment procedure. We used to have a huge stalemate about who would pay administrative spending”, Mati added.

According to Mati, the draft is based on the US model and favors debtors to give them an opportunity to recover legally from financial troubles.

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