The insolvency law for individuals. Success or failure?
The insolvency law for individuals. Success or failure?

Summary/Abstract: Romania finally has a law that regulates the insolvency of individuals.Although the stated purpose of the law is to support debtors in good faith, over-indebted and overburdened with debt, the procedure, hampered by bureaucracy, along with the shortcomings and inaccuracies of the law, have led to an unusual situation, given the low number of cases registered with the territorial insolvency commissions and courts.As the law is largely non-functional, the need to amend the text of the law is indisputable, in order to achieve the purpose for which it was created. In addition to the fact that the law must be of interest to debtors, it must also be of trust and credibility, both for debtors and creditors, in order to become a real social protection law.The economic situation in Romania, excessive and reckless crediting, has generated an alarming number of cases of over-indebtedness, in which individuals have acquired the status of debtors, being in foreclosure for several years, in endless and costly enforcement cases, including for the creditors. In its current form, Law no. 151/2015[1], even if it can be considered a "step forward" made by the Romanian legislative system, is not a solution for over-indebted individuals in Romania.In the near future it is necessary to amend the law or adopt another law, a law that would be a viable solution and available to debtors natural persons, in good faith.

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