Number of personal bankruptcies keeps growing

Amendment to the law has simplified the procedure.

(Source: Sme)

More Slovaks are turning to personal bankruptcy to get rid of their debts and the consequences of past bad decisions. During the second quarter of 2018, as many as 3,442 people declared personal bankruptcy, up 18.53 percent compared with the first quarter of 2018, CRIF – the Slovak Credit Bureau (CRIF SK) reported. Compared with the second quarter of 2017, five times more people went bankrupt.

“June 2017 was the first month when the amendment making personal bankruptcies much easier started to bear fruit,” said Jana Marková, senior analyst with CRIF SK, as cited by the TASR newswire. “Since this time, the number of personal bankruptcies has increased significantly.”

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Changes in the bankruptcy legislation were aimed at a substantial decrease in the costs related to launching the process. Before the change, those wanting to declare bankruptcy had to own property worth at least €1,650. The amendment has dropped this condition. The amendment to the bankruptcy law has been in effect since March 1, 2017.

Since 2006, when the possibility to file for personal bankruptcy and thus eliminate debts was introduced, 14,503 debtors have taken advantage of it.

A person can declare personal bankruptcy only once in 10 years. CRIF SK assumes that in 2018, about 1,000 people on average will go bankrupt.

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