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19.02.2025

Expanded range of individuals who can be released from debt obligations up to 5000 euros

Amendments come into effect regarding the exemption from debts up to 5000, as stipulated by the amendments to the Law on the Exemption of Individuals from Debt Obligations, effective January 21.

The amendments are designed to help pensioners and disabled individuals become free from debts up to 5000 EUR. It is now possible to request debt alleviation if the debtor's income is 1110 euros per month (if the debtor has no children or other dependents).

Important:

  • debt cancellation can be requested with a monthly income of 1110 euros (if the debtor has no children or other dependents).

  • when requesting debt alleviation, 15% of the state-defined minimum monthly salary will not be taken into account for each dependent.

  • until December 31, 2025, debtors will be exempt from paying taxes on the remuneration of a sworn notary. The total costs for debt cancellation for the debtor will exceed 100 euros slightly.

  • The condition regarding the minimum total debt amount required to initiate the debt cancellation process has been revoked.

  • The condition regarding the minimum total debt amount required to start the debt cancellation process has been revoked.

The aim of the amendments is to facilitate the procedure for freeing oneself from debt obligations and to broaden the potential pool of applicants.

In the future, those receiving disability pensions or old-age pensions, large families, and individuals caring for a child with disabilities will also be included.

The legal amendments are intended to help reduce social inequality in society, alleviate the shadow economy, and positively impact the overall situation of families,” explain the authors of the amendments. The amendments should also assist in combating the shadow economy.


Source:
14.02.2025., Latvijas Vēstnesis