The regulation of over-indebtedness of consumers in Europe
Title: The regulation of over-indebtedness of consumers in Europe
Author: MICKLITZ, Hans-Wolfgang
Citation: Journal of consumer policy, 2012, Vol. 35, No. 4, pp. 417-419
The economic crisis has fueled the debate on regulated state insolvencies. While debt relief is being considered for some states, citizens in some cases live their whole lives in debt. In some countries like Bulgaria, Italy, Croatia, Lithuania, and Poland, there are no consumer bankruptcy procedures which provide for an exemption from residual debt. In Spain, private debtors are entitled to debt relief on a maximum of only 50% of their debt and in other countries long periods of differing lengths are needed until complete exemption from remaining debt is granted. The length of time that information in which the publication of consumer bankruptcy notifications in public or private registers can be published also varies. There are thus no uniform regulations on how private individuals can make a clean financial start in Europe, and debtors and creditors have different opportunities. The differences in the level of protection entices insolvency tourism, which, however, is open only to those consumers who have remaining resources and who are capable of engaging in the organization of transborder debt relief.
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