More people opt for personal bankruptcies

The amendment to the law on bankruptcy and restructuring may even increase the number in the future.

Illustrative stock photoIllustrative stock photo (Source: Sme)

Slovak courts accepted altogether 181 proposals for personal bankruptcies in the third quarter of 2016, up by 16.77 percent compared to last year.

“International comparison suggests that the number of personal bankruptcies in the third quarter of the year has been constantly increasing since 2009 and we expect that after the legislative changes concerning personal bankruptcies come into force, the number will be even higher,” said Jana Marková, chief analyst of CRIF – Slovak Credit Bureau, which administers the loan registers of banking and non-banking institutions, as quoted by the SITA newswire.

The courts approved debt elimination in 35 cases in the third quarter of 2016, which is more than a year ago by two. Together 13 debtors eliminated their debts, which is a 8.33-percent increase in annual comparison, according to CRIF – Slovak Credit Bureau.

The courts have been dealing with 553 personal bankruptcies in total since the beginning of the year. Altogether 2,734 people have used the possibility to declare personal bankruptcy since the law became effective in 2006.

The most personal bankruptcies have been approved by the courts in the Bratislava Region, where there were 30 cases. This is by 87.5 percent more than in the previous year. On the other hand, the least bankruptcies were approved in Žilina Region (16), which is two more in annual comparison, SITA wrote.

The law stipulates that the proposal to declare personal bankruptcy can be submitted only by natural people in case they are unable to repay their debts. Moreover, they need to have property amounting to at least €1,659.70 from which they will pay a fee to a debt manager and also repay part of their debts.

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