People’s debts : who is responsible for them and what is to be done?

Several draft laws intended to resolve problems relating to the repayment of people‘s outstanding debts are being discussed in the Seimas. Our expert brings forward certain arguments of the lawmakers on why, in their opinion, people cannot independently take decisions on whether to borrow or not to borrow. In the expert‘s opinion, however, proposals of the authorities to allow natural persons to go bankrupt or defer discharge of their financial obligations would result only in encouraging them to take on more financial obligations and live beyond their means. The expert proposes that the only, though painful, way for the authorities to seek and avoid occurrence of problems like that in the future is to allow both the borrowers and the debtors to face the full consequences of the decisions made by them.