Extrajudicial Mechanism

What the Extrajudicial Mechanism Is

The extrajudicial debt settlement mechanism is an institutional tool that allows individuals and businesses to negotiate their debts to banks, the tax office, social security funds and private creditors, through a single, electronic process. Its aim is not punishment, but realistic repayment, adapted to the actual capacity of each debtor.

With the new Law 5313/2026 (Government Gazette A 102/25.06.2026), this framework becomes even more human and accessible. The minimum debt amount for eligibility is reduced from 10,000 to 5,000 euros, protection of the primary residence is significantly strengthened, and those who had been rejected in the past gain a new six month window to try again. At the same time, the settlement agreement acquires the force of an enforceable title, meaning greater security and stability for whoever signs it.

The New Options Are Already Active

Since Monday July 27 2026, the electronic platform now accepts applications with the new, reduced debt threshold. Three measures have substantially changed the landscape for debtors:

1. The option to repay in up to 72 installments through a separate AADE program, so that the monthly burden becomes truly manageable.
2. The renewed extrajudicial mechanism now accepts applications for debts of 5,000 euros and above, opening the door to far more citizens and professionals.
3. Enhanced protection of the primary residence, the most sensitive and important asset for every family.

The platform is already fully operational. Those who have prepared their file in advance, together with F Union, are already one step ahead of those who are only now starting the process of gathering supporting documents.

How F Union Supports You

We understand that behind every debt lies a story, not just a number. That is why our approach always begins with care and honesty.

1. We carefully study your financial picture and explain in simple terms what the extrajudicial mechanism means for your case.
2. We gather and prepare all the necessary supporting documents, so that your file is complete and ready.
3. We guide you step by step through the entire process, from submission to the final settlement agreement.
4. We remain by your side even after your enrollment, for any question or difficulty that may arise.

Our team follows the developments around Law 5313/2026 on a daily basis, so that you do not need to worry about technical details. We keep careful track of the time, you keep your peace of mind.

What the Law Provides: Before and After Law 5313/2026

Law 5313/2026 reduced the minimum debt amount from 10,000 to 5,000 euros, strengthened the protection of the primary residence, and gave those who had been rejected a new six month window to reapply. The number of installments differs depending on the creditor: up to 240 installments for debts to the State and social security funds, and up to 420 installments for debts to banks and servicers, with a minimum monthly installment of 50 euros.

In practice, this means that a debtor with a debt of 6,000 euros, who previously did not even have the right to enroll, can now submit an application. Another person, with a loan to a bank, may see their debt spread over up to 420 installments, while someone with a debt to the tax office will operate within the 240 installment framework. A third person, who had been rejected a few months ago due to incomplete documents, can now try again within the new six month period, this time with a more complete file.

The F Union team follows the developments around Law 5313/2026 on a daily basis and translates the legal provisions into concrete steps for each client. We take on checking whether you meet the requirements, identifying what was missing in any previous rejection, and building a file ready for approval.

Who Is Eligible to Enroll

Those eligible to enroll are people with overdue debts of more than 5,000 euros to one or more recognized creditors, meaning banks, the tax office, social security funds and private parties. It applies to employees, pensioners, self employed professionals and businesses of every size.

An employee with a loan and overdue debts to the tax office, a self employed professional with a debt to a social security fund, or a small business with obligations to suppliers, all potentially fall under the same framework, although each case requires different documentation. Before the application even begins, F Union informs you clearly whether you meet the requirements, so you do not waste time or build the wrong expectations. This initial assessment is carried out with no commitment whatsoever.

How the Process Works

The process includes recording all debts, calculating a realistic repayment capacity, drafting a settlement proposal, acceptance by the creditors, and finally signing the final agreement, which acquires the force of an enforceable title.

At every stage there is room for error: an incorrect income declaration, a missing supporting document, or a missed deadline can lead to delay or rejection of the entire application.

F Union takes on every stage of the process on your behalf. From recording the debts to the final signature, our team checks every detail, so that you do not need to worry about formal errors or missed deadlines.

The Platform Is Already Open: What This Means for You

Until recently, the extrajudicial mechanism operated with a stricter entry threshold, which made it a tool mainly for larger debts. With the platform now open and the threshold reduced, applying is feasible for a much wider audience, with no need to wait for any further development.

What remains decisive is the quality of the file. The application is not assessed based on intention, but based on the supporting documents and the data you submit. A file with incomplete or incorrect data can be delayed or rejected, even if the applicant otherwise meets the requirements.

F Union prepares your file methodically, checking every detail before submission, so that your application has the best possible chance of approval the first time.