Personal bankruptcy

Personal bankruptcy is a set of legal procedures applied when an individual becomes insolvent and is no longer able to meet their financial obligations to creditors. The purpose of this process is to realise the debtor’s assets, distribute the proceeds among creditors, and provide an opportunity to restore solvency and make a financial fresh start.

The personal bankruptcy process typically lasts approximately three years from the date the court approves the repayment plan. During the process, the debtor’s assets and income are assessed, a repayment plan is established, and settlements with creditors are carried out in accordance with legal requirements.

A timely initiated bankruptcy process helps reduce financial burden, avoid additional adverse consequences, and restore financial stability more quickly. Each situation is unique, therefore it is important to obtain a clear legal assessment before making a decision.