PASOK MP for the Northern Athens District, Milena Apostolaki, highlighted the serious legislative loophole that effectively nullifies the purpose of the bankruptcy law during the debate on her urgent question to the Minister of National Economy and Finance.
According to a related press release, the PASOK MP pointed out that, while Law 4738/2020 was presented as a reform that would give individuals and professionals a real “second chance,” in practice, those who complete the insolvency process—losing their assets and being permanently released from their debts—continue to face active garnishments on their bank accounts. As a result, banks refuse to even open new accounts for them, effectively excluding them from economic life.
“A citizen may have been released from their debts, but they remain excluded from the banking system. This is not a second chance. It is a permanent state of financial captivity,” she emphasized, pointing out that the state cannot write off debts while simultaneously maintaining the enforcement measures imposed for those debts.
Addressing Deputy Minister of Finance K. Markopoulos, she stressed that the problem has been known for some time and that what is lacking is not information but the political will to resolve it. At the same time, she rejected the claim that 25% of the debts had been paid off, clarifying that the discussion concerns exclusively citizens who have already received a final discharge order, which means that there is no longer any claim by the State that would justify maintaining the seizures.
The MP questioned whether those who have been released from their debts to the government are being asked to pay 25% of what they do not owe in order to have their accounts unfrozen.
It was striking that the Deputy Minister called for respect for creditors’ claims without realizing that the debtor has now been discharged and the creditors have already been satisfied from the debtor’s assets, as provided for in the law passed by the government.
Milena Apostolaki called on the government to clarify whether there is an administrative directive to the tax offices preventing the lifting of seizures or, alternatively, why the necessary circular to restore legality has not been issued, but received no response.
“The declaratory act of discharge cannot be a mere formal judicial act without effect. As long as the seizures remain in effect after the discharge of debts, the purpose of the law is thwarted,” concluded the PASOK MP.