Decree establishes home size thresholds in personal bankruptcy procedures

Budapest, September 10 (MTI) – The government has laid down home size thresholds for eligibility for personal bankruptcy in a decree published in the latest issue of the official gazette Magyar Kozlony.

The thresholds are set at one living room for a single-person home, two rooms for a family with two, two-and-a-half rooms for a family of three and two rooms and two half-rooms for families of four.

The decree also sets “reasonable prices” for homes. It puts the price of a 55-70 square metre home with two-and-a-half rooms in the capital at 14.8 million forints (EUR 47,000) and the price of a similar flat in Hungary’s biggest cities at 9.3 million forints.

Rental fees for homes in a personal bankruptcy procedure are set at a monthly 1,300 forints per square metre for a 55-80 square metre flat in Budapest and at 1,000 forints per square metre for such flats in the biggest cities in the country.

Personal bankruptcy rules came into force from September 1, 2015 for Hungarians whose homes could be repossessed. The rules will become universal from October 1, 2016. The law passed in June allows insolvent Hungarians with debts, including interest and fees, between 2 million forints and 60 million forints, to file for personal bankruptcy, exempting their assets from debt collection.

Source: http://mtva.hu/hu/hungary-matters