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Debt restructuring guide in 10 questions

Interest and penalty are recalculated on pension deductible, insurance, support premium debt that concerns millions. Applications will continue until 31 August. No collateral will be required in the restructuring, liens will be lifted.

A total of ₺75.6 billion debt is being restructured, including insurance premiums, general health insurance, and the revival of the frozen periods of Bag-Kur members, of 16 million 840 thousand citizens.

In order to benefit from the restructuring, an application must be made by the end of August 31st and the first installment must be paid by November 1st. If the original of the general health insurance premium debt is paid by 31 December, the delay penalty and the increase will be completely deleted. No collateral will be required in the restructuring, liens will be lifted.

According to the news of Hazal Ates from Sabah newspaper, the Social Security Institution answered the curious questions, especially the advantages of the restructuring, which also offers great opportunities in social security. Here is the restructuring process in security in 10 questions:

1- WHICH DEBTS DOES THE RESTRUCTURING COVER?

Finalized insurance premiums for April and before, General Health Insurance (GSS) premiums, unemployment insurance premiums, receivables arising from the revival of the frozen service periods of Bag-Kur members, debts related to optional and group insurance premiums will be restructured.

2- HOW AND WHERE DO YOU APPLY?

Employers can apply to social security centers through e-insurance (e-sigorta), in person or by mail, and Bag-Kur insured persons and those who pay their own premiums can apply to any social security center via e-Devlet, in person or by mail. There is no application requirement for the restructuring of the General Health Insurance debts.

3- WHAT ARE THE ADVANTAGES OF RESTRUCTURING?

After the publication date of the law, delay penalty and increase will not be applied to the receivables paid on time. The liens applied before the restructuring will be removed in proportion to the payments to be made. There will be no enforcement proceedings or foreclosures due to debts. During the period of two installments, a ‘no debt’ letter can be received. Structured debts of municipalities can be paid in 120 equal installments. As long as the restructuring continues, insurance premium incentives will be used, provided that the installments are paid on time.

4- WHEN DOES THE RESTRUCTURING BE DISRUPTED?

If the first two installments are not paid on time, more than two installments are not paid in a calendar year, or if they are paid incompletely, the restructuring will be disrupted. Missing payments up to ₺10 in installment payments will not disrupt the restructuring. In case the restructuring is broken, the debtors will be able to benefit from the restructuring provisions as much as the installment amount they have paid.

5- HOW WILL GSS DEBTS BE RESTRUCTURED?

GSS debts for April 2021 and earlier will be automatically restructured. If the entire principal debt is paid by 31 December, the delay penalty for this debt will be deleted. Those who miss the one-month period required for the income test, who have never had an income test, and who are unable to pay their debts, must apply for the income test by 30 November. In case of an application, the debts of the citizen whose income is less than one-third of the minimum wage will be written off and the premiums will be paid by the state. Automatically restructed GSS debts can be learned via e-Devlet.

6- HOW WILL PAYMENT AND INSTALLMENT WORK?

The receivables will be updated with D-PPI instead of delay penalty and hike. 90% in advance payment, 50% in two installments will be deducted. Payment in installments can be made in 6, 9, 12 and 18 equal installments every two months. The amount to be updated according to the number of installments will be determined according to the following coefficients: “For 6 equal installments (1.09), for 9 equal installments (1.135), for 12 equal installments (1.18), for 18 equal installments (1.27).

7- WILL BAG-KUR DEBT BE CLEARED?

If Bag-Kur policyholders cannot pay or restructure their debts by September 30, services with premium debts before April 30 will be suspended. Premium debts will be erased. The insurance of those who continue their activities will be started as of May 1.

8- HOW WILL THE APPLICATION RESULTS BE FOLLOWED?

Employers will be able to learn the restructuring payment plans through the employer system, where they can access via e-sigorta, the restructuring application results of Bag-Kur insurance holders via e-Devlet, from the payment plans notified to their addresses, from the banks and, if they apply, from the social security provincial directorates.

9- WILL THOSE WHO HAVE DEBT PREMIUM BE ABLE TO ACCESS TO HEALTH?

Those who owe Bag-Kur will be able to benefit from health services both for themselves and their families if they do not have premium debts for more than 60 days in the current months after paying their first installments. On the other hand, if those who have GSS debt have 30 days of premium payment in the last 1 year, they will be able to get provision when they go to the hospital.

10- WHEN IS THE FIRST PAYMENT DATE?

Cash or first installment payments of debts such as insurance premiums and unemployment insurance premiums must be made by 1 November.

Source: NTV / Translated by Irem Yildiz

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