How can a natural person start insolvency content?

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Most of us have experienced periods in our life when unexpected circumstances lead to a loss of income or unexpected expenses. Typically, such situations are temporary and can be resolved by borrowing additional cash, splitting up due payments or otherwise "going through" financially precarious times.

However, financial problems may not be solved in the short term, and debt levels are only rising, one person settles on another, and creditors calculate interest and penalties that increase over time. At this point, you should ask yourself whether it is even possible to pay off your debt in the foreseeable future. Instead of devoting the next few years of your life to paying off debt and interest payments, nowadays there is a legal and effective mechanism for overcoming financial failures and gaining the opportunity to regain control over your income in the short term.

What schould be taken into account when considering to initiate the insolvency proceedings of a natural person?

 

·   insolvency proceedings can be initiated if a person owes more than 5,000 euros and the due date has already expired;

·   the state of the person's property and income must be such as not to allow it to fulfill its obligations;

·   the person must be in good faith before the insolvency proceedings are instituted, and must not engage in any transaction which results in a loss of creditors, property, etc.;

·  the person must be able to cover the costs of initiating the insolvency proceedings in the amount of 930 euros;

· 1/3 of a person's income is diverted to creditors in the insolvency proceedings;

·  insolvency proceedings can take from about 6 months to 3 years, depending on the size of the person's debt.

It is important to receive qualified legal assistance both before and during the commencement of the insolvency proceedings to ensure the successful conduct of the proceedings - timely evaluation of the person's transactions, proper communication and protection of the person's interests with the insolvency administrator. It should be borne in mind that there are a number of circumstances in which a person's insolvency proceedings may not be declared or terminated halfway without the person being released from his obligations.