ASSETS

Debt restructuring enables individuals, households, or businesses facing financial difficulties to renegotiate their obligations and render them viable. Our team possesses extensive knowledge of the local market and handles complex cases with the support of experienced Insolvency Practitioners and Legal Advisors.

Our range of services includes:
➤ Review & evaluation of loan documents and guarantee agreements
➤ Negotiation & settlement solutions
➤ Evaluation of new or existing lending terms
➤ Rights & obligations of secured creditors, borrowers, and guarantors
➤ Assessment of the impact of Floating Charge on corporate assets
➤ Development of restructuring plans

Banking Mediation
Within the framework of restructuring, we also utilize Banking Mediation—a process applied to disputes between a borrower and a Banking Institution, aiming for a mutually beneficial agreement without foreclosures, freezing of accounts, or auctions. It is highly recommended for the settlement of overdue debts.

Banking Mediation is analyzed in detail: Click here.

Our firm provides comprehensive advice on your rights and obligations as a guarantor and on how the Insolvency Framework may affect you particularly in cases involving a Personal Repayment Plan (PRP) or bankruptcy.

What you need to know:

• Guarantee Agreement — As a guarantor you undertake to repay the debt if the borrower is unable to meet their repayment obligations.
• Personal Repayment Plan (PRP) — The law requires that you be fully informed of the outstanding debt and the debtor’s agreed repayment plan.
• Bankruptcy — Your liability is limited to the difference between the outstanding debt and the value of the mortgaged property. If the value of the mortgaged property is sufficient to cover the debt in full you are released from liability.

➤ The Insolvency of Natural Persons (Personal Repayment Plans and Debt Relief Orders)
Law of 2015 (Law 65(I)/2015)

A Personal Repayment Plan is a debt restructuring mechanism for natural persons. It has two principal objectives: ensuring repayment to creditors and where feasible preserving the debtor’s principal private residence.

Key eligibility criteria:
• The debtor must be insolvent and unable to repay their debts.
• If the debtor has previously been declared bankrupt at least 5 years must have elapsed since their discharge from bankruptcy.
• If the plan is rejected by the creditors the Court may impose it provided that the market value of the debtor’s principal private residence does not exceed €350,000 and the total value of their remaining assets does not exceed €500,000.

Key stages:
•Appointment of an Insolvency Practitioner (IP) — The debtor appoints a licensed Insolvency Practitioner who assesses their financial position and prepares the proposed debt restructuring plan.
• 95-Day Protection Order — The Insolvency Practitioner applies for a Protection Order. While the Order remains in force creditors may not take legal action against the debtor.
• Creditors’ Meeting — The proposed plan is presented to the creditors and put to a vote. If the plan is rejected the debtor may apply to the Court for its imposition.
• Approval and Implementation — Following approval and subject to compliance with the terms of the plan the debtor is discharged from the unsecured debts covered by the plan.
• Protection of Guarantors — Once the Personal Repayment Plan takes effect guarantors may receive full or partial protection depending on the circumstances of the case.

➤ he Bankruptcy Law, Cap. 5 — Natural Persons—
Bankruptcy is a legal procedure available exclusively to natural persons who are unable to repay their debts. Bankruptcy proceedings may be initiated either by the debtor or by a creditor and bankruptcy is declared by an order of the Court.

Requirements for a bankruptcy order:
• Total unsecured debts exceeding €15,000.
• Commission of an act of bankruptcy such as failure to comply with a bankruptcy notice, a declaration of inability to pay debts or the fraudulent transfer of property.
• No Personal Repayment Plan (PRP) is currently in force.
• The debtor resides or carries on business in Cyprus.

Key stages:
• Filing of a Bankruptcy Petition — The petition may be filed by the debtor together with an affidavit, a list of creditors and guarantors and a description of the debtor’s assets. It may also be filed by a creditor upon payment of a €500 fee.

• Stay of Proceedings — The Court may stay the bankruptcy proceedings for up to three months if the debtor demonstrates that they are able to submit a Personal Repayment Plan.

• Appointment of the Official Receiver — The Official Receiver automatically assumes responsibility for administering the bankrupt person’s entire estate.

• Stay of Legal Proceedings — No creditor may continue existing legal proceedings or commence new proceedings against the bankrupt person without the permission of the Court.

• Publication and Notification — The Bankruptcy Order is published in the Official Gazette of the Republic and notified to the Tax Department, the Department of Lands and Surveys and the Social Insurance Services.

• Discharge from Bankruptcy — The bankrupt person may apply for a discharge order and obtain a fresh financial start.

The acquisition or transfer of immovable property involves complex procedures and administrative formalities. Our firm handles every Land Registry matter from start to finish providing you with security, efficiency and peace of mind.

Our services include:

• Purchase of Immovable Property — Legal assistance and completion of all necessary documentation and due diligence required for the purchase of immovable property.

• Transfer of Immovable Property — Completion of the transfer of the title deed through the Department of Lands and Surveys efficiently and without unnecessary delay.

• Gift of Immovable Property — Legal completion of a property transfer by way of gift usually between members of the same family.

• Discharge of Mortgage — Removal of a mortgage from the property’s title following full repayment of the relevant loan or obligation.

• Trapped Buyers — Legal assistance for purchasers who have paid the purchase price of their property in full but have not obtained their title deed.

The loss of a loved one also gives rise to a range of legal and administrative responsibilities. Our firm handles every aspect of administering the deceased’s estate with sensitivity, professionalism and complete confidentiality.

Our services include:

• Grant of Letters of Administration — Completion of the Court application for the grant of Letters of Administration and the appointment of an administrator of the estate under the Administration of Estates Law, Cap. 189.

• Wills — Drafting and Probate — Drafting a legally valid will that reflects your wishes and handling the legal process required to obtain a grant of probate following death.

• Intestate Succession — Administration of estates where the deceased left no will in accordance with the Wills and Succession Law, Cap. 195.

• Distribution and Transfer of Estate Assets — Lawful distribution of movable and immovable property among the heirs and beneficiaries including the registration of immovable property with the Department of Lands and Surveys.

• Settlement of Debts and Liabilities — Administration and payment of the deceased’s debts and liabilities in the legally prescribed order of priority before the remaining estate is distributed.

• Protection of Heirs and Beneficiaries — Legal assistance where an administrator fails to perform their duties, conceals estate assets or otherwise prejudices the rights of an heir or beneficiary.