Bankruptcy of a natural person refers to a set of legal procedures that come into effect when an individual declares their inability to meet financial obligations towards creditors.
The objective of bankruptcy for a natural person is to liquidate the debtor's entire asset pool, distribute the procured funds (inclusive of their monthly income) to creditors, establish conditions for the restoration of solvency, and offer a fresh start.
Conditions for initiating bankruptcy for a natural person:
- Bankruptcy proceedings can only be initiated for individuals in a state of insolvency, whose financial obligations exceed 25 times the minimum monthly wage approved by the Government of the Republic of Lithuania (9500 Euros) and whose debt repayment term has already expired.
- The individual must not have engaged in fraudulent transactions;
- The individual should not possess harmful habits (such as gambling, alcohol, psychotropic substances abuse, etc.);
- The individual should not have been penalized for crimes or misdemeanors;
- Only the debtor has the right to initiate bankruptcy proceedings;
- The bankruptcy case is adjudicated exclusively in courts (District Court).
The process of bankruptcy for a natural person spans three years. This term commences from the day when the court approves the personal insolvency recovery plan.
HOW WE CAN ASSIST YOU:
- We offer legal consultations;
- We prepare documents for initiating and executing the process of bankruptcy for a natural person (sending notifications to creditors, collecting all relevant documents associated with initiating the bankruptcy, preparing an application for court initiation of a bankruptcy case);
- We ensure absolute confidentiality and reliability.
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