Greece protects homes with new debt relief plan
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Starting September 21, 2026, Greece implemented a new framework through its Out-of-Court Debt Resolution Mechanism to better protect primary residences. The new rules respond to long-standing requests from citizens for stronger safeguards against losing their homes while also offering more flexibility to hundreds of thousands of debtors.
Borrowers can now request a debt restructuring that protects their main home by separating it from other property when applying through the online platform.
This process allows for greater debt forgiveness and lower monthly payments because the restructuring calculation considers only the value of the primary residence. In exchange, debtors agree to voluntarily liquidate their other assets through a simplified foreclosure process. Creditors are required to propose this specific alternative restructuring plan, one that includes saving the primary residence and liquidating other properties, for vulnerable and eligible debtors. However, debtors can accept or reject this counter-proposal.
If rejected, they will receive the standard out-of-court proposal without the liquidation of other properties. Once a restructuring agreement is signed, any forced execution, auction, or precautionary measures against the debtor’s primary residence are explicitly prohibited, provided the terms of the agreement are met. The agreement itself carries the force of an enforceable title, ensuring a quick, clear, and consensual process for all parties.
The new rules permanently and effectively protect citizens’ primary homes, offering a second chance to hundreds of thousands of borrowers to sustainably manage their debts without fear of losing their homes.
