What the service includes
Personal bankruptcy is a lawful way to write off debts you cannot service, but the procedure must be carried out carefully: from correctly forming the bankruptcy estate to protecting your only home from being wrongly included in it.
If you have already decided on bankruptcy and want to know which debts will be written off and which will remain in any case, see the separate page on writing off debts through bankruptcy.
We support the procedure from start to finish: from filing the application and choosing the form (restructuring or sale of assets) to completing the procedure with the debt written off, while working to preserve the property that the law does not allow creditors to take.
We also work through the choice between debt restructuring and sale of assets: with a stable income, restructuring can sometimes preserve part of the assets and credit history that would be lost in a direct sale. We prepare in advance our position on property that is not formally part of the sole home but is necessary for the client’s work or to support the family, from a car to professional equipment.
What the service includes:
Who it is for
The situations clients most often bring to us on this topic.
How we work
A fixed fee and a clear plan of action, agreed before work begins. The timeframes below are indicative and depend on the complexity of the case.
Assessing your situation
We analyse the client’s debts and property and determine the best strategy for the procedure. Timeframe: 1-2 days.
Filing the petition
We prepare and file the application to declare the individual bankrupt with the commercial court. Timeframe: 3-7 days.
Conduct of the procedure
We support the debt restructuring or sale of assets and defend the client’s interests at creditors’ meetings. Timeframe: 6-18 months.
Debt write-off
We see the procedure through to completion with the unpaid part of the debt written off. Timeframe: on completion of the procedure.
What you will need at the start
We confirm the exact list for your situation at the consultation. This is a guide so that you arrive at the first meeting prepared.
Key figures
Experience in this practice area specifically, not in practice as a whole.
Common mistakes
Trying to transfer property to relatives. The debtor moves a flat or a car to close relatives in advance, believing this will protect them from creditors. Such transactions in the period before bankruptcy are the first to be examined, and if there are signs of asset stripping they are declared invalid.
Filing through the MFC without checking the conditions. The individual tries the simplified out-of-court procedure without making sure that the amount of the debt and the status of enforcement proceedings meet the legal requirements, is refused, loses time and has to start again.
Underestimating the consequences after the write-off. The client counts only on being released from the debts and does not take into account that for several years after the procedure restrictions apply to new loans and to holding management positions in companies.
What you get
A court ruling releasing you from debts. The client receives a judicial act that legally extinguishes all the obligations entered on the register.
Your sole home preserved. The flat or house where the client permanently lives remains their property and is not included in the bankruptcy estate.
An updated credit history with no arrears. The data on written-off obligations is closed at the credit bureau, instead of an endlessly growing current arrears.
A clear list of protected property. The client knows in advance which property the law protects from inclusion in the bankruptcy estate and will not be lost.
Related
Frequently asked questions
Will all my debts be written off in bankruptcy?+
Not all of them. Some obligations (for example, maintenance payments and compensation for harm to life or health) are never written off.
Will I lose my only home?+
As a general rule, a sole home is protected from recovery, except where it is mortgaged. The procedure must be conducted correctly for this rule to be respected in practice.
How much does personal bankruptcy cost?+
The cost consists of the state duty, the financial manager’s fee and publication costs. We give the exact figure after assessing your situation at a consultation.
How will personal bankruptcy affect my credit history?+
The bankruptcy is recorded in your credit history, and for several years restrictions apply to a repeat bankruptcy and to certain types of activity. We go through this in detail at a consultation.
Can I transfer a flat or a car to a relative before bankruptcy?+
Such transactions made before the application is filed are the first to be scrutinised. If there are signs of asset stripping, they are declared invalid and the property returns to the bankruptcy estate.
Will I lose my only home if I have nowhere else to live?+
A sole home that is not mortgaged is, as a rule, not included in the bankruptcy estate and stays with the debtor after the procedure ends.