After the grant by the Cyprus Government of a new year reprieve for many homeowners who have not yet issued proceedings against the banks in Cyprus -with the extension of the limitation period in Cyprus to December 2014 – a new phenomenon has appeared for the new year – people contacting Christofi Law in connection with enforcement proceedings being taken by the Cypriot banks in the UK.
More and more people are contacting Christofi Law stating that they have received UK bankruptcy notices, or UK statutory demands threatening bankruptcy, served on behalf of the banks . Many have also received proceedings issued by the Cypriot banks in county courts here in the UK for charging orders over their homes.
Many are saying that they were not aware any proceedings had been issued in Cyprus. Others had just ignored proceedings.
Those people – and Christofi Law predicts many more will be contacted as time goes on- can still do something about their plight.
The solution is in two parts – and both have to be done at the same time ; the first is to apply to the court in the UK to “stay” or delay the proceedings – either through applications to set aside statutory demands in the bankruptcy courts or otherwise.
The second is that people must make – at the same time – an application in Cyprus to set aside any judgment that has been obtained against them, seeking a stay of proceedings in Cyprus as part of that application.
The downside is that the cost of doing this will be high and immediate – and in any event , will be far in excess of what it would have been had people simply heeded warnings and issued proceedings in the first place, as Christofi Law have been advising throughout.
Moreover, for those who had obviously ignored correspondence, the chances of set aside are very limited – Cypriot courts will not consider that a reason for setting aside. There is the added problem that setting aside is discretionary and it does not follow that courts in Cyprus will feel that applicants have sufficient grounds to set aside. Even then, any set aside may also be on condition that the banks costs are paid and that a defence is filed quickly.
Those wishing for further advice on this can contact Chris Christofi at Christofi Law