CreditHub: Greece

• Limited liability of shareholders
• Legal entity
• Equivalent to AG

• Hybrid of AE and partnership
• Legal entity
• Limited liability

• Unlimited liability
• No minimum capital
• Partners jointly liable

• Limited and unlimited liability partners
• No minimum capital

• Limited liability for partners
• Corporate debts liability limited

• Cooperation for specific projects
• Not a separate legal entity
• Legal and bankruptcy capacity if registered

• Individual operations
• Full liability

• General Commercial Registry

• Financial information

• Credit reports

Depending on the available documents and if the open debts are disputed by the debtor, it is possible to apply a payment order at court or initiate court proceedings such as a lawsuit, preliminary measures, or filing for bankruptcy.

To apply for a payment order, you will need at least one of the following:

• A notarised acknowledgment of debt
• A private acknowledgment of debt with tax stamps
• Original bills of exchange, promissory notes, or bounced cheques
• Invoice copies and proof of delivery, signed and stamped by the debtor

• Ensure documents are properly signed and notarised
• Organize all relevant documents before court proceedings
• Prepare for both payment orders and lawsuits

• Contracts
• Orders and confirmations
• Dispute documents
• Correspondence
• Power of attorney
• Company extract

• Contracts: Signed with terms and conditions
• Orders: Made by debtor in writing
• Order confirmations: From creditor
• Dispute documents: Confirming any disputes
• Correspondence: Between parties
• Power of attorney: Properly signed
• Company extract: Current, showing authorized representatives

When included in trade contracts, retention of title allows the seller to retain ownership over the goods supplied until certain contractually defined conditions are met, therefore providing the seller with a form of security against the buyer's default or insolvency.

In certain finance transactions (involving car dealers or other similar traders), security arrangements can be put in place entitling a financier to exercise the seller's rights under the retention title. Security arrangements of this type need to be considered on a case-by-case basis, considering the nature of the asset while also taking into account the extent to which the asset can be traced by the secured creditor.

• Creditor name and overview of the claim
• The total amount of the claim, including penalties (interest)
• Payment method required
• A warning that the claim will be enforced through the enforcement authority in case the claim is not settled by the required date
• Information on how to dispute the claim

If this measure has been taken and the payment still has not been made after a notice period, the creditor may file for enforcement.

Late payment interest may be charged to the debtor on the first overdue day. The Recast Directive 2011/7/EU, which stipulates that payments in the EU must be made within 60 days, was transposed into domestic law through Law 4152/2013 (which retroactively entered into force on 16th March 2013).

In contrast to the regulations set forth in most EU member states, late payment rules in Greece are very comprehensive: in general, payment terms in business-to-business transactions must not exceed 60 calendar days unless otherwise agreed by contract and provided that the delays are not grossly unfair to the creditor. Beyond this point, interest may be due as negotiated by the parties. But in any case, the law allows creditors to charge an automatic interest rate approximately from 7% to 8%.

The transposition of the Recast Directive 2011/7/EU into domestic law entitles creditors to charge a flat EUR 40 collection fee when payment is late. However, it is uncommon to do so unless a claim is brought to court.

Claims related to commercial cases have a limitation period of five years from the original due date of the debt value.

• Take action before the limitation period expires
• Commercial claims have a 5-year limitation period

• Specific contracts may have different periods

• Not recognized
• Rarely utilized

• A payment order is required to be issued relative to the outstanding amount. The court must then examine the evidence and supporting documentation to determine whether the debt is legally due for payment and enforce an immediate payment order within 50 to 60 days.
• For any bounced cheques, the payment order should be filed within six months from the date that the cheques were bounced. In case of bills of exchange, there is a time frame of three years.
• Debtor objections may be filed up to 15 days from receipt of the payment order. Should such an appeal be filed, then the proceeding will be transferred into ordinary legal proceedings.
• When the debtor has assets in other EU member states, a European Payment Order procedure (facilitating the recovery of undisputed debts under Regulation EC No 1896/2006) may then be triggered. In this case, the creditor may request a domestic court to issue an Order to Pay, which would then be enforceable in all EU countries (except for Denmark) without exequatur proceedings.

• Consider the appropriate court system based on the claim amount and complexity
• Be aware of EU enforcement mechanisms

• The Penal Procedure pertains to the debtor issuing bounced cheques. Here, the creditor can file against the signatory on the cheques within a time frame of three months after the cheque(s) was bounced.
• This procedure aims to further pressure the debtor who is facing imprisonment in case they do not pay.

• The civil law system in Greece is similar to those of France and Germany. The law is codified, and courts are unbound although similar case decisions are utilized as guidance.
• Claims below EUR 20,000 fall under the jurisdiction of the Justices of the Peace Tribunals (‘Eirinodikeio’). Claims of up to EUR 250,000 are dealt with by Single-Member Courts of First Instance (‘Monomeles Protodikeio’). Claims more than EUR 250,000 are dealt with by Multi-Member Courts of First Instance (‘Polymeles Protodikeio’).
• Unlike other markets, the oral hearing is conducted as a written procedure, unless the court considers that the information is inconclusive, in which case the court may issue an act for summoning witnesses. Witness testimonies must be provided by an affidavit which is usually stated before a Notary Public (or appropriate consulate if abroad).
• Pleadings are submitted within a term of 100 or 130 days from the submission of the lawsuit, and additional pleadings should be submitted within the following fifteen days from the expiry of the above deadline. Without such a pleading the case is considered closed.
• Within a term of fifteen days starting from the date that the file is closed, the judge or the court composition is appointed; while at the same time, a hearing for the discussion of the case is established no later than thirty days after the case closure. Discussions may proceed without the presence of either party, their respective legal teams, or any witnesses.

Payment orders may take 3-4 months, whereas ordinary procedures could take up to 8 months depending on the case complexity.

• Be prepared for varying case durations
• Complexity and objections may extend the process

• Case complexity
• Debtor objections

• Fees depend on the action taken and claim amount
• Proportional fees for payment actions: 5% of claim amount, between PLN 30 and PLN 100,000
• 25% fee for writ of payment proceedings

• Understand the different fee structures
• Budget for various legal costs

• Lawyers' fees and other costs depend on the claim amount and type of proceedings
• Cost calculations are left to the court's discretion as cost values depend on the outstanding principal amount, fees incurred for personnel (such as subject experts) and interests.
• Generally, the unsuccessful party must bear the cost of court proceedings. In the case of settlement, the parties would be expected to bear their own respective costs.

The following types of judgments can be enforced:

• Judgments that have been appealed and a final decision has been issued (or have not been appealed within the agreed timeframe)
• First instance judgments which have been declared provisionally enforceable
• Arbitration awards
• Notarial deeds
• Court records that contain the parties' compromise or specific court costs
• Payment orders
• Foreign judgments that are declared recognized and enforceable
• Any other document that is recognized as enforceable under the law

• Choose the most effective enforcement method
• Consider foreign judgment enforcement under EU and non-EU rules

The provisions of the Council Regulation (EC) 1215/2012 have application regarding enforcement of EU Member States judgments in Greece. Non-EU, foreign judgments are recognized and enforceable under Art. 323 CCP.

Judgments can be enforced once final or provisionally enforceable. Non-EU foreign judgments are enforceable under Art. 323 CCP.

Enforcement methods include seizing assets, real estate enforcement, or garnishing wages/accounts.

The Greek Bankruptcy Code's latest amendment introduced a debt reorganisation process to avoid immediate liquidation of viable companies in temporary financial difficulty.

Such a process begins with:

• Submission of a reorganisation plan from specialist auditors to the court.
• The court conducting a judicial review of the proposed plan.
• A court-appointed mediator gathering information from creditors to understand the relevant debt positions.

The plan may only be validated upon approval by creditors representing 60% of the total debt. In the case of no approval, the court would issue a liquidation phase upon request.

• Reorganisation can prevent liquidation
• Creditors must approve the plan by 60% vote

Assuming a creditor has not already filed a claim against a debtor as involuntary liquidation, a debtor may voluntarily liquidate through a bank petition submitted no later than 30 days after a cessation of payments.

• Consider voluntary liquidation if immediate payment cessation occurs
• Involuntary liquidation can be avoided with reorganisation

Insolvency proceedings may commence under the supervision of a court-appointed administrator once debts are confirmed and verified.

The process includes:

• A pool of creditors overseeing the proceedings.
• Termination of proceedings once the proceeds of the sale of the business' assets are distributed.
• Lodging of claims in the insolvency proceedings by local lawyers, which must be done in Greek.

Although subject to the case in question, it is not uncommon for insolvency proceedings to take over three years.