The law regulating the personal bankruptcy procedure for natural persons sets that people unable to pay their debts, through no fault of their own, can reschedule their debts based on a financial recovery plan, over a five-year period.
Under the law, the people declaring personal bankruptcy are protected against foreclosure. However, a debtor’s expenses will be checked upon by a judicial administrator. People convicted of tax evasion or those entering insolvency fraudulently or amassed new debts by making expensive acquisitions shall not enjoy the provisions of the law.
The law was promulgated by President Klaus Iohannis on June 18, 2015 and was going to become effective at the end of 2015, but its enforcing norms have yet to be adopted.