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iff-Discussion paper 2017/1

Debt relief systems are implemented by governments to manage the problem of over-indebtedness, however, differences in systems exist across nations. Some systems, such as that in the United States, are favourable towards the consumer and enable a quick discharge of debts through bankruptcy and a fresh start for the consumer. Other systems, such as that in Germany, are more favourable towards the creditor. They require the consumer to lock into a minimum period of debt repayments before their debts can be formally discharged through bankruptcy.

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