Can I declare consumer bankruptcy when I can't repay debts?
Yes, if you're insolvent — it's the court route to debt relief. Consumer bankruptcy is a court procedure for individuals not running a business who have become insolvent (lastingly, usually where arrears exceed 3 months). A single creditor is enough to file, and you can use it once every 10 years. After bankruptcy is declared, debt-collection and enforcement actions are halted, and a trustee manages the debtor's assets (protecting basic items and part of income for upkeep). The court sets a repayment plan or — where there are no assets or means — cancels the obligations. From 2026 there are easements: automatic cancellation of debts after the plan ends, removal of annual reports, and shortening data "visibility" in the debtors' register to 3 years.
📋 The rules
- For individuals not running a business, insolvent
- Insolvency: lasting non-payment (usually > 3 months)
- A single creditor is enough; procedure once every 10 years
- After declaration: collection halted, trustee manages assets
- Effect: repayment plan or cancellation of debts
🔓 Exceptions
- Protection of some assets: basic items and income for upkeep
- Former entrepreneur or unregistered business: can also use it
- Deliberately causing insolvency: may limit debt relief
⚠️ Penalties & fines
Consumer bankruptcy is not an automatic, consequence-free "wiping out" of debts: the debtor's assets (beyond the protected minimum) enter the bankruptcy estate to satisfy creditors, and the court usually sets a repayment plan for a set time. If the debtor deliberately or through gross negligence caused the insolvency, the court can refuse or limit debt relief. Hiding assets or giving false data in the application risks serious consequences. To go through the procedure: prepare the application diligently with a list of assets and creditors, cooperate with the trustee and court, follow the repayment plan, and if in doubt use a lawyer or restructuring adviser. Remember the once every 10 years limit.
📎 Official sources
❓ Frequently asked
Who can declare consumer bankruptcy?
An individual not running a business who has become insolvent, i.e. lastingly fails to pay due obligations (usually arrears over 3 months). Former entrepreneurs can also use the procedure. A single creditor is enough to file the application.
What are the effects of declaring bankruptcy?
Debt-collection and enforcement actions are halted, and a trustee manages the debtor's assets, liquidating them for creditors (protecting basic items and part of income). The court sets a repayment plan or cancels obligations if the debtor has no assets or means to repay.
Does bankruptcy cancel all debts?
Not always and not automatically. Some obligations may be covered by a repayment plan and cancelled only after it's completed. Some debts (e.g. maintenance, certain penalties) usually aren't cancelled. The court can also refuse relief where the debtor deliberately caused the insolvency.
How often can I declare consumer bankruptcy?
As a rule once every 10 years. This limit is meant to prevent abuse of the debt-relief procedure. So the decision to file is worth thinking through and preparing diligently, ideally with a lawyer or a licensed restructuring adviser.
What changes in consumer bankruptcy from 2026?
There are easements for debtors: automatic cancellation of debts after the repayment plan ends, removal of the duty to file annual reports, and shortening the period of data visibility in the National Register of Debtors to 3 years, allowing a faster return to normal functioning.
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