Greece has introduced a new consumer bankruptcy code modelled after the German insolvency procedure but with a significant shorter good will period of 4 years (6 in Germany). Its outstanding innovation lies in the development of a network of debt advice offices in Greece.

In its inauguration conference the Greek socialist ministry of economics had invited a representative from iff and ECRC, from the European Debt Net and from the Dutch Social Banks as well as from Portugal which recently introduced personal bankruptcy as well as rate ceilings. We provide the speech of Udo Reifner who argues that the crisis should lead to a focus on debtors rights more than on investors interests in order to restore a sane money market with recoverable claims that can no longer serve as false money to cheat others. Similar to his book „Die Geldgesellschaft“ he argues that the money system is only a credit system and as save and as transparent as the debtors ability to pay is represented correctly in all claims whether securitised or otherwise provided with an ability to circulate and function as money.

Germany seems to be moving into the same direction where the welfare state due to a lack of money gives back social risks to the economy. The ministry of Justice announced a shortening of the good will period from 6 to 3 years in Germany and further out-of-court settlements. This step should like in Greece be accompanied by more and better debt advice in Germany since discharge is only one tiny bit in the process of rehabilitation and reintegration. Read more in the annexed speech.

For further details click on all languages and read the German report.