After two years of fierce debate a major package of amendments is going to enter into force on 1 March 2015 in Latvia. The most controversial are those relating to personal bankruptcy.
Firstly, after the sale of the debtor’s dwelling that served as collateral, the remainder of the debtor’s obligations towards the secured creditor will be discharged automatically, without applying a discharge procedure. Secondly, the amendments have shortened the terms of the discharge procedure, with the vast majority of personal bankruptcy proceedings now expected to last for approximately one and a half years.
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