The cost of relief measures for debtors – over 20 million euros lost by creditors

For the first time in decades, key indicators of debt recovery carried out by judicial officers have significantly decreased.

In the first half of this year, judicial officers returned 149.4 million euros in debts to creditors, which is 22.3 million euros less compared to the first half of 2024. Private creditors recovered 16 percent less debt. Only recoveries based on state-initiated claims increased by 8 percent, as four large debts ranging from 1 million to almost 3 million euros were recovered in favour of the state.

From the beginning of this year until 1 July, judicial officers’ offices closed 116.1 thousand debt recovery cases (11 percent fewer than in the first half of the previous year). Among them were 63.5 thousand successful cases where creditors recovered the full claimed amounts.

Statistics from the Judicial Officers’ Information System clearly reveal the price creditors (currently – more often private ones) have to pay for the legislative relief measures introduced in 2024 for individuals with debts: on 1 July, the amounts that can be recovered from income were reduced two to three times, and on 1 December, the possibility to take “debt holidays” was legalised. Although judicial officers can promptly recover debts using modern electronic tools, the recovery processes are being slowed down by barriers established in the law.

As processes take longer, the chances of recovering the full debt amounts decrease.

As statistics show, for most debtors these relief measures did not become an incentive to move from the illegal shadow economy to the official labour market. The share of debtors officially employed remains stable at around 17 percent. About 63 percent of debtors do not work anywhere and do not receive any income known to the State Social Insurance Fund Board (Sodra), not even benefits. Excluding those engaged in individual activity and those who have not declared departure from Lithuania, it can be concluded that about half of all debtors live on illegal income.

If in January–June 2024 almost 14 thousand unique creditors recovered all or part of their debts, this year the number dropped to 13 thousand. Among those who recovered debts were about 240 budgetary institutions (State Tax Inspectorate, Sodra, Customs, etc.), about 4 thousand private legal entities and about 9 thousand individuals. More than 30 thousand creditors benefited from the enforcement of child support (so-called alimony) through periodic payments, while last year child support arrears were recovered in favour of 900 unique creditors (including about 20 legal entities, social service homes, family centres, childcare centres, etc.).

A positive trend in the “debt map” – decreasing need to recover court-awarded child support payments (alimony). In the first half of 2025, judicial officers received 1.68 thousand such claims: two percent fewer than in the first half of 2024 and slightly fewer compared to the second half of the previous year. The main reason for this decline is likely the relatively low consumer price index, which must be applied when recalculating periodic child support payments under government regulations. Single parents apply to judicial officers less often because support payers index payments independently, and even if they do not, the financial losses for creditors are not significant.

In the first half of 2025, judicial officers’ offices in Lithuania were handling 1.55 million enforcement processes initiated in various periods. Among them were 768 thousand processes initiated by state institutions and 791.3 thousand processes initiated by private individuals and legal entities.

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