Consumer bankruptcy

The Private Bankruptcy 2020 Amendment introduced very important changes in the rules for declaring and conducting private bankruptcy..

According to the amendament, the right to private bankruptcy was granted to all individuals who became insolvent. Private bankruptcy can be obtained not only by consumers, but also by natural persons who has conducted business activity.

The legislator assumed that if a person is unable to pay his debts, he should be helped by reducing the debts or spreading them into instalments, and in situations not caused by the debtors, even by their complete cancellation. The rules for debt reduction may be based on a repayment plan set by the court, but also on an agreement negotiated directly with the creditors. In both cases, the debtor’s representative can play an important role.

The new Private Bankruptcy Law for sole traders harmonises with the Restructuring and Insolvency Directive (EU) 2017/1132. Both rules are aimed at rescuing and restoring businesses. These unables a businesses to continue its activities despite financial difficulties. In this way, EU and national law follows the aid approach based on the so-called second chance principle.

Our advocates and attorneys-at-law have experience in the application of bankruptcy law. In these cases, we skilfully represent the rights of consumers and entrepreneurs before courts, receivers and creditors.

Consumer bankruptcy – what we do:

  • analyse the status and legal situation of a consumer or an entrepreneur as regards the possibility  of  declaring consumer bankruptcy and its chances of debt reduction or cancellation,
  • prepare a bankruptcy petition and the required documents,
  • provide legal and procedural representation in bankruptcy proceedings and in relation to all its participants, in particular the restructuring advisor, receiver and creditors,
  • cooperate in setting up a plan for repayment or debt reduction that is beneficial to the debtor.

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