Write-off of all or part of the bankrupt's liabilities

Write-off of all or part of the bankrupt’s liabilities

The court discharges the bankrupt’s liabilities without establishing a creditor repayment plan if the bankrupt’s personal situation indicates that he or she would not be able to make any repayments under the creditor repayment plan, i.e. he or she is permanently unable to make any repayments under the creditor repayment plan. It should be borne in mind that this condition does not justify the application of temporary difficulties, in particular difficulties in finding a job, or temporary health problems, even if they persist for a long time, but are not of a permanent nature.

If the inability to make any repayments under the creditor repayment plan resulting from the bankrupt’s personal situation is not of a permanent nature, the court shall write off the bankrupt’s liabilities without establishing a creditor repayment plan, provided that within 5 years from the date on which the decision on the conditional write-off of the bankrupt’s liabilities without establishing repayment plan for creditors, neither the bankrupt nor any of the creditors submits an application to establish a repayment plan for creditors, as a result of which the court, finding that it determines the bankrupt’s inability to make any repayments under the repayment plan for creditors, will repeal the decision on the conditional discharge of the bankrupt’s liabilities without establishing a repayment plan for creditors and establish a repayment plan for creditors.

The court repeals the decision on the conditional discharge of the bankrupt’s liabilities without establishing a repayment plan for creditors when the bankrupt:

1) failed to submit the report on time,
2) provided false information in the report, in particular concealed the revenues generated or assets purchased,
3) performed a legal act concerning his property without obtaining the court’s consent or this act was not approved by the court,
4) he hid the assets of the bankrupt or the legal act of the bankrupt was legally recognized as having been performed to the detriment of creditors

– unless the failure to comply with the obligations is insignificant or the failure to revoke the decision on the conditional discharge of the bankrupt’s liabilities without establishing a repayment plan for creditors is justified by equity or humanitarian considerations.

If the decision on conditional write-off of the bankrupt’s liabilities is revoked without establishing a repayment plan for creditors, the bankrupt’s liabilities are not subject to write-off.