Consumer bankruptcy

If, due to various random events such as illness, job loss, or fraud by third parties, you are unable to cover your living expenses and repay your debts, consumer bankruptcy is a solution worth considering. It’s also worth considering legal assistance in consumer bankruptcy. A lawyer specializing in consumer bankruptcy can help you navigate the entire process.

Consumer bankruptcy is an institution that allows for the settlement of obligations (debts) to creditors in the event of the insolvency of the debtor (individual), as well as partial debt relief. According to bankruptcy law, bankruptcy is declared in relation to a debtor who has become insolvent. A debtor is insolvent if they have lost the ability to fulfill their due monetary obligations. It is presumed that the debtor has lost the ability to fulfill their due monetary obligations if the delay in fulfilling monetary obligations exceeds three months.

This means that if you are unable to repay your debts on time (e.g., personal loan installments, subscription payments, lease installments, repayment of debt to a bailiff), and you have even fallen into a debt spiral, you can file for bankruptcy.

Thanks to the institution of bankruptcy, it is possible to comprehensively resolve the debt problem – to the extent possible, repay creditors and get a chance for a fresh start – without the burden of debts.

If the court approves the bankruptcy petition, establishes a repayment plan, and the plan is executed, the bankrupt regains financial liquidity. The repayment plan takes into account the debtor’s earning capacity as well as the living expenses of their family.

Conducting bankruptcy proceedings allows for opening a bank account without fear of its seizure by a bailiff, signing a phone subscription agreement or other services, and also in the future, obtaining a loan from a bank.

A common hindrance preventing individuals from applying for bankruptcy is a lack of knowledge of where to start, as well as overwhelming debt that has spiraled out of control. In our law firm, we often witness situations where consumers who approach us with debt problems lack information about their debt status. They are unable to answer the question of how much they owe and to whom – that is, what their total debt is and who their current creditors are. Financial problems often lead to health issues, including psychological problems (such as depression), as well as emotional issues. As a result, individuals in financial crises often stop monitoring incoming correspondence, fail to pick it up, or even discard it immediately after receiving it. Of course, the described situation – denying or ignoring problems – leads to even greater accumulation of problems. The way out of this situation is to entrust the consumer bankruptcy process to our law firm.

What can we do for you in the pre-litigation stage – preparing for filing for bankruptcy?

• We will determine the amount of debt.
• We will determine the status of ongoing executions after contacting bailiff offices.
• We will register as your representative in pending court and enforcement proceedings – we will take over correspondence with the court, creditors, and enforcement authorities.
• If your debt has been assigned – we will determine the current creditor.
• We will request copies of enforcement titles (judgments, payment orders).
• We will determine if any of your debts are time-barred.
• We will determine the value of your assets and advise if there is a chance to preserve them.

What can we do for you in the Court stage?

• We will prepare the bankruptcy petition and submit it electronically through the IT system (National Debt Register).
• Along with the petition to the court, we will submit a power of attorney granted to the lawyer specializing in bankruptcy law, so that all communication with the court is conducted through our law firm.
• After the bankruptcy is declared (the decision on the debtor’s bankruptcy is issued), we will represent you in contact with the trustee assigned to your case.
• We will represent your interests during court hearings.