Having personal debt in Crete/Greece

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SoonToBeGreek
Posts: 3
Joined: Sat Jan 26, 2019 2:27 pm

Having personal debt in Crete/Greece

Postby SoonToBeGreek » Sat Feb 09, 2019 3:36 pm

Hey!

First off, thanks for letting me in! I came mainly because I have one question that I deemed impossible to find on Google due to the pollution of the other results with the same theme (debt). So here I go:

How is personal debt collection in Crete/Greece? I know in many countries it's hardly enforced at all, and in some, it's very much so. So for example where I live now, if I have debt that cannot be paid over a certain amount of time, it will start getting taken directly from my bank account or from my salary (with a set amount left based on standards for "reasonable income"). Can this happen in Crete/Greece too, or is it worse/better? Will it just be ignored? Will I be sent to prison? Will it just come out of my paycheck? Will nobody care at all?

Kilkis
Posts: 10109
Joined: Sat Apr 21, 2007 3:58 pm
Location: Near Chania

Re: Having personal debt in Crete/Greece

Postby Kilkis » Sat Feb 09, 2019 4:34 pm

It will depend on the circumstances. For example to whom you owe the debt and why. If you owe money to the government, e.g. unpaid taxes, they can freeze your bank account and take money from it directly. I think about 4 million bank accounts are currently frozen in Greece. They can also confiscate property. Both are subject to restrictions. If you are an employer and you do not pay your staff you can be imprisoned indefinitely until you pay whatever you owe them, although this very rarely happens. If it is a private debt I presume the person owed the debt can take legal action against the debtor to try to get the money back. I suspect this rarely works since the debtor usually has nothing to take.

If you want to know the details you would be better asking a lawyer and give them more information. Overall I would say the universal rules apply:

    1 Neither a borrower nor a lender be.
    2 If you want justice go to a brothel. If you want to get screwed go to court.

Warwick

PS In replying to this post I am giving the poster the benefit of the doubt. I think I hear, very faintly, the trip trapping of tiny hooves but it may be my imagination.

SoonToBeGreek
Posts: 3
Joined: Sat Jan 26, 2019 2:27 pm

Re: Having personal debt in Crete/Greece

Postby SoonToBeGreek » Sat Feb 09, 2019 5:18 pm

Kilkis wrote:It will depend on the circumstances. For example to whom you owe the debt and why. If you owe money to the government, e.g. unpaid taxes, they can freeze your bank account and take money from it directly. I think about 4 million bank accounts are currently frozen in Greece. They can also confiscate property. Both are subject to restrictions. If you are an employer and you do not pay your staff you can be imprisoned indefinitely until you pay whatever you owe them, although this very rarely happens. If it is a private debt I presume the person owed the debt can take legal action against the debtor to try to get the money back. I suspect this rarely works since the debtor usually has nothing to take.

If you want to know the details you would be better asking a lawyer and give them more information. Overall I would say the universal rules apply:

    1 Neither a borrower nor a lender be.
    2 If you want justice go to a brothel. If you want to get screwed go to court.

Warwick

PS In replying to this post I am giving the poster the benefit of the doubt. I think I hear, very faintly, the trip trapping of tiny hooves but it may be my imagination.


Lol, thanks for the reply. It all makes sense. I just want to be as prepared as I can for anything before moving to a new country, and this particular matter was something extremely hard to Google as I just kept getting results about the debt of Greece unfortunately. The rest of the information I've tried to find has been pretty straight forward (actually, a lot of it thanks to you and this forum).

I'm actually planning on starting my own company in the next few years if everything goes as planned, under my own name, so both being a borrower and a lender could become a risk at some point. So having prepared for the worst (on both ends) means I might have a lesser reaction and thus better mind to handle it, should that day come. Again, thank you! (:

Kilkis
Posts: 10109
Joined: Sat Apr 21, 2007 3:58 pm
Location: Near Chania

Re: Having personal debt in Crete/Greece

Postby Kilkis » Sat Feb 09, 2019 6:15 pm

Good luck, I suspect you are going to need it. As far as the Greek government is concerned private companies and especially sole traders are the same as the blood transfusion service would be to Count Dracula, i.e. there for their benefit to be bled dry.

Warwick

SoonToBeGreek
Posts: 3
Joined: Sat Jan 26, 2019 2:27 pm

Re: Having personal debt in Crete/Greece

Postby SoonToBeGreek » Sat Feb 09, 2019 8:01 pm

Kilkis wrote:Good luck, I suspect you are going to need it. As far as the Greek government is concerned private companies and especially sole traders are the same as the blood transfusion service would be to Count Dracula, i.e. there for their benefit to be bled dry.

Warwick


Thanks for the heads up. I'll keep that in mind. It will be in tech so I guess it could be set up with an origin anywhere, and now probably will be :P

Kilkis
Posts: 10109
Joined: Sat Apr 21, 2007 3:58 pm
Location: Near Chania

Re: Having personal debt in Crete/Greece

Postby Kilkis » Sat Feb 09, 2019 11:10 pm

There are people who live in Crete and operate tech businesses based outside Crete so it is possible. I'm not sure exactly what they do about tax matters. Probably keep themselves tax resident outside Crete?

Banks here are all effectively bankrupt so you are unlikely to get a loan from them so you probably won't get yourself into debt that way.

Many suppliers want paying up front so you are unlikely to get into debt with them. Often they need the money to obtain the product from their suppliers before they can deliver it to you.

Customers will probably want to pay you with a post dated cheque, possibly endorsed 10 or 20 times so you won't actually get paid for about a year and only then if all the people who endorsed it still have operative bank accounts.

If you are offering a service a significant proportion of your clients will probably not pay you after you've delivered the service. After all there is nothing you can take back like you could if it was a tangible product. If you demand payment up front they will probably go elsewhere. Private schools are really suffering from this and many have gone out of business.

If you can set up so that the business is registered outside Greece, all your clients are outside Greece and all payments and costs are outside Greece that would probably be preferable.

Warwick

Toebs
Posts: 4
Joined: Sat Jan 26, 2019 9:42 pm

Re: Having personal debt in Crete/Greece

Postby Toebs » Tue Feb 19, 2019 1:34 pm

Kilkis wrote:
    1 Neither a borrower nor a lender be.


Maybe, but Polonius was an idiot. If he was right, he was right by accident.

Kilkis wrote:
    2. If you want justice go to a brothel. If you want to get screwed go to court.


Amen. 100% concur. Never go to court. If you can possibly avoid it, do not go. Court is fabulously expensive and you can have no idea whatsoever what will happen, or why. All a court is good for is *a* decision, which is then enforced. What is achieved is an end to uncertainty - which can be vital, in some situations. The *actual* decision is completely unpredictable, staggeringly slow and stunningly expensive.

IME, only the blind go to court. People are often willfully blind, because they are angry. They imagine the court will vindicate them.

YoMo2
Posts: 1045
Joined: Sat Mar 16, 2013 11:07 am
Location: Milatos, Lasithi

Re: Having personal debt in Crete/Greece

Postby YoMo2 » Wed Feb 20, 2019 8:43 am

Toebs wrote:..........All a court is good for is *a* decision, which is then enforced.........


Sometimes............

Andrew


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