The personal bankruptcy procedure was amended in June 2017 in the Austrian Parliament and will become legally effective in November 2017. Personal bankruptcy is a form of judicial repayment proceedings that were established in 1995 and include a set of procedures and provisions laid down in Austria’s Bankruptcy Act. The goal of these proceedings is to give ‘righteous and motivated’ persons who have run into debt a realistic chance to start again economically.
The main adaptions of the personal bankruptcy procedure in 2017 are as follows: Full bankruptcy discharges will be granted after 5 years on subsistence minimum (now 7 years) and the minimum quota of debts to be repaid will be eliminated (now 10 % minimum quota). Thus it will be easier for persons with a low income or at risk of poverty to make a fresh start. The debt counselling organisations in Austria have demanded an abolition of the 10 % quota for many years, so they do strongly agree with these adaptions! Austria with its new Bankruptcy Act is thus moving from the European final to the midfield.