The Regulation of 120 installments: all you need to know

The financial staff and institutions are into intense negotiations, regarding the regulation of the 120 installments for debts of active self-employed and self-employed in insurance funds and tax offices.

In particular, the financial staff estimates that around 100,000 free lancers have the opportunity to align with the regulation and maintain their jobs.

However, the institutions’ intention of limiting as much as possible the number of debtors, who are in the process of accession, is a remarkable cornerstone of the negotiation. In particular, they insist on the need to establish specific property criteria that will determine not only the inclusion in the regulation, but also the amount of the monthly debt. In particular, they ask for the property to be less than ten times the amount of the debt so that one can use the regulation of 120 installments.

What does the regulation provide?

The regulation of 120 installments will concern debts that have been created by 31/12/2016 and not the new ones; moreover, it will be open only to self-employed workers, even to those who have suspended their activity.

The haircuts for insurance fund debts are expected to be as high as 85%, while for tax debts 95%. The amount of write-offs of the increments will follow the size of the debt and the number of installments.

Regarding specific debts and debtors categories, it is considered that part of the basic debt will be cut. In respect of the debts to the tax office, it is expected that a principal debt haircut of up to 30% will be provided. As for debts to insurance funds, an important condition is that the principal debt is not matched by insurance time, so as not to create problems for the expected pension.

Finally, the consistent payment of 120 installments has as basic clause the implementation of haircut. If, for example, someone stops in the first 60 installments, he is charged with all the increments and the main debt is recovered. The paid installment cannot be less than 50€per creditor.