New rules for bankruptcy law take a little longer than announced
The federal government had announced an amendment to the bankruptcy law for the end of January. But when it will be so far is still open. Above all, it is about faster debt relief options for companies and private debtors. Especially when it comes to the debt relief period for private individuals, the coalition partners are said to have a problem. It is also about the fact that insolvency proceedings could in future not be driven by the debtor but by the creditor.
Responsible for the insolvency law and thus its reform is first and foremost the green-led Ministry of Justice of Alma Zadic, which is currently represented by Vice Chancellor Werner Kogler. From the Ministry of Justice, it is said of the APA that the issue is in government-internal coordination.
Allegedly, the ÖVP is resisting the fact that the debt relief period for private individuals should be shortened to three years, as the Greens intend to do. At least that is what various experts on the subject say behind closed doors. But there should also be more details. According to reports, there could also be temporary regulations due to the corona crisis, but that doesn't seem to be fixed yet.
The People's Party did not want to accept the view that the ÖVP was slowing down the duration of debt relief. “As with other issues, detailed negotiations are required here. These are currently underway,” said a spokesman for Finance Minister Gernot Blümel to the APA. Blümel is responsible for government coordination on the part of the People's Party.
When an agreement could be reached and what could be changed, representatives of both government factions left open. Of course, the corona crisis ties up a particularly large number of forces. An EU directive provides for an amendment by July 17th at the latest.
AKV expert Cornelia Wesenauer said on Wednesday on Ö1 radio that it “could sometimes be critical” if debtors should initiate their own proceedings. “Because we reckon that a debtor who does not want a process will take much longer and lead to longer process times. That means it would not lead to a weakening.”
Headwind for faster debt relief for private bankrupts came recently from the largest creditor protection association KSV, as “Die Presse” reported at the end of January. Debt advice, on the other hand, sees no reason for different lengths of debt relief periods for companies and private individuals. Debt relief is currently possible within three years for companies and within five years for private individuals.
