Daily News Hungary economy

Hungarians have made 980 filings for personal bankruptcy since the procedure’s introduction in the autumn of 2015.

The court has approved 175 of the filings and is still processing another 118, Pál Völner, parliamentary state secretary for justice, said in a written response to a query by an opposition MP posted on the website of parliament. A further 151 filings are being prepared for submission to the court.

The court rejected 121 filings and out-of-court agreements were reached in 27 cases. Preparations are under way to settle a further 388 cases out of court.

Filers had on average 19 million forints (EUR 63,000) of debt. But some had debt close to the 60 million forint eligibility threshold for filing.

Personal bankruptcy rules came into force from September 1, 2015 for Hungarians whose homes could be repossessed. The rules became universal from October 1, 2016.

As we wrote before, Hungary is still in the top three concerning the taxes and contributions among the countries of the Organization for Economic Co-operation and Development (OECD). According to the recent analysis made by the organization, the Hungarian state receives 48.2 percent of the gross incomes without family discounts. The only two countries with higher tax wedge are Belgium (54 percent) and Germany (49.4 percent).

As we wrote, a woman from Pest owes over 4.7 million euros in delinquent taxes to the National Tax and Customs Administration (NTCA). She also has a fine of 4.3 million euros, thus, as a private individual, she has more debt than any companies in debt to the NTCA.

Source: MTI

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