What the service includes
Writing off debts through bankruptcy is not a way of evading obligations but a lawful procedure for those whose debts objectively exceed their ability to repay. How the procedure is conducted determines what the debtor is left with when it ends.
Not yet sure that bankruptcy is the right step in your situation? Start with our general overview of personal bankruptcy.
We support the procedure from filing the application to final release from obligations, protecting the property that by law cannot be seized and minimising the risk of a refusal to discharge debts.
Not all debts can be written off: obligations for maintenance (alimony) and for compensation for harm to life and health, as well as claims connected with subsidiary liability, survive even after the procedure ends. We analyse the client’s debts in advance so that the procedure does not end in disappointment after a year of waiting, and we build a realistic plan for what the client will have when they emerge from bankruptcy.
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 review the make-up and origin of the debts, which determines whether the court will be willing to release you from your obligations at the end of the procedure. Timeframe: 1-2 days.
Preparing the application
We prepare the application and the full package of documents on the debtor’s financial position. Timeframe: 3-7 days.
Conduct of the procedure
We support the sale of assets and protect what the law exempts from enforcement. Timeframe: 6-12 months.
Release from debts
We see the case through to the court ruling releasing you from further performance of your obligations. 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
Turning to unlicensed advisers. People trust intermediaries with no legal training and no authority as a bankruptcy trustee, who promise a guaranteed quick write-off of debts but in fact have no right to conduct the procedure and may make the debtor’s position worse.
Taking out new loans while insolvent. The debtor takes new loans to cover old payments when already effectively insolvent, and the court later treats such conduct as bad faith and may refuse a full discharge of debts.
Expecting to go bankrupt again sooner than allowed. The client does not realise that after the procedure ends, debts cannot be written off through bankruptcy again for several years, and puts off seeing a lawyer or abandons the process, depriving themselves of the right to a write-off for a long time.
What you get
A court ruling on the write-off of debts. The final court ruling extinguishing the obligations to all creditors included in the bankruptcy procedure.
A list of debts that are not written off. The client knows in advance which obligations, such as maintenance (alimony) and compensation for harm to health, will survive the end of the procedure.
Enforcement proceedings terminated. Account freezes and deductions in respect of the debts included in the register are lifted when the procedure ends.
A post-bankruptcy action plan. An understanding of the restrictions, from the duty to disclose the bankruptcy to the periods after which management positions may be held.
Frequently asked questions
In what cases can the court refuse to write off debts?+
If it is proved that the debtor acted in bad faith: concealed assets, gave false information about income, or took out loans with no intention of repaying them.
Can loan debts be written off if the loans were taken out shortly before bankruptcy?+
This may be grounds for refusing to discharge those particular debts if the court considers the debtor’s conduct to be in bad faith; we discuss this at the consultation to assess the real risks.
What happens to the debtor’s property during the asset sale procedure?+
Property other than that protected by law (a sole home, personal belongings, a minimum subsistence set) is included in the bankruptcy estate and sold to repay the debts.
How long does the procedure take before the debts are written off?+
Usually from six months to a year from the filing of the application, depending on the complexity of the case and the number of creditors.
Will absolutely all debts be written off, including maintenance and fines?+
No. Obligations for maintenance (alimony) and for compensation for harm to life and health, as well as debts arising from subsidiary liability, remain with the debtor even after the bankruptcy procedure ends.
Can I keep my only home and a car I need for work?+
A sole home, if it is not mortgaged, is usually not included in the bankruptcy estate, while whether a car can be kept is decided case by case and depends on whether it is pledged and whether it is needed for professional activity.