| Overindebtedness - First personal bankruptcy law in Luxembourg |
The news is posted by ECRC partner Christian Schumacher from the Ligue Medico-Sociale, he is also a member of ECDN and the new law for personal insolvency and debt relief is partly the result of the intense exchanges within this EU network, which can be proud of its achievement in promoting the harmonisation of laws in this area among those Member States that still do not have such legal tools to help overindebted consumers.
Below is an English translation of the relevant parts of the new law on overindebtedness (12 years after the previous one – The LOI SUR LE SURENDETTEMENT was published in the journal see attachment below in french). The law of 12.12.12 will come into force on 1.3.2014
Dear friends,
Parliament just voted at 3:40 pm a new law introducing a personal bankruptcy procedure and abolishing the debt regulation procedure fixed by the former law of the 8th December 2000 on overindebtedness.
This new law improves the former one and introduces for the first time a personal recovery procedure into Luxemburgish law.
The main improvements are the following:
- Completion of the former two phases based procedure (conventional and jurisdictional phases) by a third phase, the so called “procédure du rétablissement personnel” which means personal recovery procedure.
- Reform of the application for acceptance procedure by enlarging the competencies of the mediation commission.
- Review of the effects of the request for acceptance to fill the lack of legal safeguards and to insure the debtor’s cooperation during the whole procedure
o by linking the suspensory effects of the access request to the acceptance/refusal decision to the conventional phase;
o by expanding the suspensory effects to the interest rates;
o by fixing by law the use of the restrained seizures and assignments on wages;
o by introducing a period of good behavior during which the debtor is supposed to:
- cooperate with the authorities
- undertake paid work if possible
- not to increase his insolvency
- not favor one creditor
- fulfill the promised commitments
o by allowing the revocation of the measures taken in favor of a dishonest debtor
- Possibility to implement social assistance measures during every of the three phases
- Fixing the duration of the conventional reimbursement plans by limiting them to 7 years
- Reinforcement of prevention measures
This law enters into force on the date of its publication but unfortunately only applies "one year after its entry into force".
CS
Note: legal search: http://www.legilux.public.lu/leg/a/search/index.php?query=all&include=surendettement&exclude=&search.x=29&search.y=9&mn=&mp=&mt=0&searchDate=all&in_year=&from_day=7&from_month=02&from_year=2013&to_day=7&to_month=03&to_year=2013&count=0&sort=0 |
| ID: |
48222 |
| Publication date: |
12/02/13 |
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Created: 14/02/13. Last changed: 14/02/13.
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