Ministry Pondering New Law to Help Small Debtors Clear Their Debts

A bill is in the making in Latvia over insolvency for small debtors who can't repay what they owe, LSM reported. There are about 40,000 such debtors in Latvia, according to the Finance Latvia Association, which says that debts shouldn't be pardoned fully under the proposed law, instead requiring even the small debtors to cover 10 to 15% of the sum. The bill in question is currently being reviewed at the Justice Ministry. Laila Medina, Deputy State Secretary at the ministry, said that currently only people who owe more than €5,000 can apply for insolvency, while the bill seeks to introduce a procedure for people who earn the minimum wage and whose debts are from €2,000 to €5,000. Read more