One of its major aims is to address defects in the law of personal insolvencies, which are a huge social and economic problem in Slovakia. Since the IARA first took effect in 2005, the number of persons who have filed for personal insolvency is lower than in other EU countries even though, at first glance, the conditions seem favourable. The amendment came into force on 1 March 2017. Before the amendment, debt relief for natural persons was carried out in two phases:
(i) total liquidation of the debtor’s assets; and
(ii) a 3-year period during which the debtor transferred a part of their income to creditors, following which debt relief was finally approved.
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