For people with smaller debts, the new personal bankruptcy law, which has been released for public consultation by the Ministry of Justice, will not apply.
Already last year, the government adopted a law on the bankruptcy of citizens, and it was considered in the parliament in the first reading. But there were serious criticisms of the project, and now an improved version has been released for public consultation.
The difference from the first option is that even people without property can be declared bankrupt. But the procedure for this will last a total of six years.
To start bankruptcy proceedings, a person’s debts must be more than 10 minimum wages. In addition, he must be in good faith. This means that if there are no physical problems, it should work.
If the debtor did not work a year before filing for bankruptcy, the court will refuse to start the procedure and will even impose a fine on him.
In addition, five years before filing for bankruptcy, the debtor must not have spent sums that are not in accordance with his property and income, and must not have bought anything beyond what is necessary for the maintenance of the family.
If the debtor has enough assets to pay the costs of the procedure, as well as the fees owed to the receiver, the court will start the bankruptcy procedure.
After they sell off the debtor’s property and three years have passed, his remaining debts will be forgiven, the project foresees.
But if a person doesn’t have enough assets to pay the receiver and cover some of his debts, he will have to wait six years before his debts are forgiven. First, the court itself will wait a year to find out if the debtor will not receive some money from somewhere.
After that, another five years must pass, during which all creditors will continue to sue the debtor and make attempts to collect their money.
And only after that, his remaining troubles will be forgiven.
