Personal insolvency thresholds to rise alongside the minimum wage in July

With the increase in the gross minimum wage scheduled for 1 July 2026, the conditions for accessing personal insolvency proceedings in Romania will also change. This change will directly affect Romanians facing serious financial difficulties who are no longer able to meet their payment obligations.

The minimum thresholds required to initiate personal insolvency proceedings will rise proportionally with the minimum wage increase, meaning that debtors will need to accumulate larger arrears in order to be eligible for this legal option for resolving their financial situation.

The change will apply to all types of procedures available under personal insolvency. These include the repayment plan procedure, through which a debtor can restructure their debts over a set period by adhering to an established payment schedule.

The thresholds will also increase for insolvency by asset liquidation, a procedure whereby the debtor's assets are sold to partially or fully cover creditors' claims. In addition, the simplified procedure, designed for less complex cases, will likewise be subject to the new limits.

This adjustment aims to maintain a balance between protecting debtors in genuine financial difficulty and preventing the misuse of personal insolvency proceedings. Thresholds indexed to the minimum wage ensure they remain relevant within the current economic context.

For many Romanians — particularly pensioners and those on low incomes who have accumulated debts due to health problems or other unforeseen circumstances — this change may mean a longer wait before they can access the legal protection offered by insolvency proceedings.

Specialists recommend that people experiencing financial difficulties familiarise themselves with the new conditions well in advance and seek legal advice in order to identify the most appropriate solution for their particular circumstances.