The Athens Bar Association has expressed its strong disagreement with the provisions of the new Bankruptcy Code, as they do not ensure effective protection for vulnerable debtors, particularly with regard to their primary residence. For this reason, it decided on the abstention of Athens lawyers from auction proceedings concerning the primary residence of vulnerable households/borrowers from 17 June 2021 to 31 July 2021.
With the implementation of the new Bankruptcy Law (Law 4738/2020), auctions of primary residences are expected to take place in the near future, since to date the implementing ministerial decisions provided for by the law have not been issued and, most importantly, the “Acquisition and Leaseback Entity” has not yet been established. This demonstrates that, as repeatedly pointed out, the protection afforded to vulnerable debtors under the new law is weak, and the protection of the primary residence is substantially reduced and incomplete compared to the previous legal framework.
In light of the above, the Board of the Athens Bar Association maintains its longstanding position calling for the immediate suspension, by legislative measure, of auctions of the primary residence of vulnerable debtors, at least until the establishment of the Acquisition and Leaseback Entity, as well as the adoption by law of a code of conduct governing the operation of loan and claims servicing companies.
Given that these demands have not yet been accepted, and taking into account that a wave of enforcement proceedings and auctions against vulnerable debtors (as defined in Article 217 of Law 4738/2020) is expected to follow, the Board of the Athens Bar Association decided, until 31 July 2021, on the abstention of all lawyers from enforcement proceedings against primary residences initiated by banks and claims management companies, and in particular:
- A) Abstention from obtaining enforceable copies of enforcement titles. In the specific case of payment orders, only obtaining a simple copy thereof is permitted, and not an enforceable copy, solely for the purpose of complying with the deadline of Article 630A of the Code of Civil Procedure.
- B) Abstention from drafting, signing, and serving a demand for payment (Article 924 of the Code of Civil Procedure), which constitutes the first act of compulsory enforcement and is mandatorily drafted beneath a certified copy of the first enforceable title. The accuracy of the copy is certified by the lawyer issuing it (Article 36(2)(b) of the Lawyers’ Code), and in practice the demand for payment ultimately requires a lawyer’s signature.
- C) Abstention from signing an order for enforcement (Article 927 of the Code of Civil Procedure).
