October 15, 2014

Significant changes in the Insolvency law of Latvia were introduced with the amendments approved by the Latvian Saeima on the 25th of September. Among key issues touched upon by the new regulation a so-called principle of the “dropped-off keys”, meaning that a debtor (natural person) will be discharged of the obligations towards the creditor, which remain after the sale of the property that was used to secure the loan. Said principle will only be effected in situations where debtor’s dwelling is being sold in the course of the insolvency procedure. It shall be noted, however, that this order will relate to the property over which the security is established after January 1, 2015.