The Out-of-Court Debt Settlement Mechanism is becoming an effective and increasingly popular solution for businesses, freelancers and individuals seeking sustainability and financial breathing space. According to the latest data, settlements through the mechanism increased by 81% in 2024, confirming the need for businesses to ensure liquidity and flexibility in repaying their debts.
What does this mean for you? If you have tax or insurance debts, loans or debts to the state and creditors, the Extrajudicial Mechanism may be the right solution for you.
Why choose the Extra-Judicial Mechanism?
The Extra-Judicial Mechanism provides an organised and flexible debt settlement process, allowing businesses to regain financial control.
Its main benefits and advantages include:
- Creation of a long-term debt repayment plan of up to 240 instalments for debts to the State and Social Security institutions and up to 420 instalments to financial institutions.
- Debt reduction – Possibility of cancellation of surcharges and significant debt relief.
- Protection from seizures & legal actions – Safeguarding your property.
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Suspension of individual and collective enforcement measures against the debtor if the arrangement is complied with.
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Issuance of proof of tax and insurance compliance.
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Settlement of loans guaranteed by the Greek State.
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Partial debt cancellation while avoiding recourse to judicial solutions. A prerequisite is proof of real financial weakness on the part of the debtor, co-debtors and guarantors.
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Automated process without lengthy negotiations.
2025 is expected to be a landmark year for the mechanism, as more and more businesses take advantage of the opportunity to secure a viable debt settlement.
Who is affected and how can they join?
CHECK IF YOU CAN TAKE BENEFITThe Extra-Judicial Mechanism is available for:
- Businesses (SMEs & large companies) facing financial difficulties.
- Freelancers with tax and insurance debts.
- Individuals with overdue loans and debts.
In particular,based on the measures promoted, the following will now have the opportunity to join:
Income thresholds
- Single person households: €14,000
- Household consisting of two members: €21,000
- Household consisting of three members or a single-parent family with one minor member: €28,000
- Household of four or single-parent family with two minors: €35,000
- Household consisting of five or more members or a single-parent family with three or more minor members: €42,000
What are the asset limits to benefit?
- Single person households: €240,000
- Household consisting of two members: €270,000
- Household consisting of three members or a single-parent family with one minor member: €300,000
- Household of four or single-parent family with two minors: €330,000
- Household consisting of five or more members or a single-parent family with three or more minor members: €360,000
What are the Deposit Limits to benefit?
- Single person households: €14,000
- Household consisting of two members: €21,000
- Household consisting of three members or a single-parent family with one minor member: €28,000
- Household of four or single-parent family with two minors: €35,000
- Household consisting of five or more members or a single-parent family with three or more minor members: €42,000
How is the process done?
The application is submitted online through the Special Platform for Out-of-Court Debt Settlement. With the right guidance, you can achieve the best possible settlement and avoid complex procedures or rejections.
Why choose Triangle PFS , to manage your application
Reliable PartnersThe proper management and preparation of your application is a key factor for your successful inclusion in the Extra-Judicial Mechanism. Triangle PFS, with years of experience in tax and financial management, offers expert support at every stage of the process, ensuring the best possible outcome.
- Comprehensive debt analysis and formulation of the appropriate debt settlement strategy.
- Accurate management of the application, preventing errors that could lead to rejection.
- Continuous monitoring of the progress of the arrangement and guidance on compliance.
The right guidance makes a difference – Our clients have achieved sustainable settlements, debt reduction and financial stability through the Out-of-Court Mechanism.
Avoid uncertainty, trust the experts
Managing your financial obligations requires organisation, accuracy and proper planning. The Extra-Judicial Mechanism is a powerful tool for both businesses and individuals seeking a structured and viable solution to their debts. With the support of Triangle PFS, the process becomes clear and targeted.