According to Greece's Kathimerini newspaper, the judge at the Justice of the Peace court based his decision on a 2010 law that permits protection for people struggling to meet their financial commitments. To date, this law has only been used to provide relief to the unemployed.
The lady concerned is a full time civil servant with three children to support. She and her family have moved back with her parents. The court decided that she needs €350 per month to live on and that the remainder of her salary should be distributed between the four banks she owes money to.
However, the judge limited these repayments to a four year term, meaning only €30,000 of the €112,000 outstanding will be repaid. The rest will be written off.
This ruling is likely to see thousands of people applying to the courts for similar protection, leaving the banks in Greece acutely aware of the irony in calling a debt an "asset".