What is the purpose of personal bankruptcy in Latvia?
December 12, 2024
Personal bankruptcy (officially — the insolvency proceedings of a natural person in Latvia) is a voluntary process. The debtor — a private individual — is the one who needs it in the first place. Its purpose is to give a person the opportunity to be relieved from some part of his or her debts and to restore his or her solvency.
Conditions
This process is not suitable for all debtors.
Only «conscientious» debtors can take advantage of all the benefits of the insolvency process, who:
Only «conscientious» debtors can take advantage of all the benefits of the insolvency process, who:
- do not hide their financial situation and true income,
- can earn income in accordance with their capabilities and direct at least a third of their monthly income to repaying debts to creditors,
- during the last three years before the insolvency process did not provide knowingly false information to their creditors,
- during the last three years before the insolvency process did not enter into questionable transactions as a result of which they became insolvent, or which caused losses to creditors.
Before applying for the personal insolvency, it is necessary to carefully assess the capabilities of the debtor, as well as study the specific circumstances of the matter to find out whether there are no obstacles that prevent the successful start, conduct and completion of the insolvency process in Latvia.
Insolvency law is one of the main areas of expertise of Belyaev & Belyaev. Please feel free to get in touch with us if you would like to obtain a more detailed consultation in your specific situation.
Submit your questions
Insolvency law is one of the main areas of expertise of Belyaev & Belyaev.
Please feel free to get in touch with us if you would like to obtain a more detailed consultation in your specific situation.
Get in touch
Thank you! Your submission has been received!
Something went wrong while submitting the form. Please try again!
