Consumer bankruptcy 2025: what changed and who it applies to
- #bankruptcy
- #consumer
- #restructuring
Who can file
Consumer bankruptcy can be filed by any individual not running a business who has become insolvent, i.e. has not been paying due liabilities for more than 3 months.
Importantly: you don't have to prove insolvency arose "without your fault". The court can still refuse if debts arose from gross negligence or wilful conduct.
What changed in 2025
- Repayment plans were shortened from 36 months to 12–36 months depending on the situation.
- Categories of non-dischargeable debts were clarified: alimony, fines, damages for wilful conduct.
- A simplified procedure was introduced for individuals with no assets.
What bankruptcy does NOT discharge
- Alimony (current and overdue).
- Criminal fines and reparations.
- Damages for wilful tort.
- Obligations arising after the bankruptcy declaration.
The rest (credit cards, loans, rent debts, civil fines) can be discharged after the repayment plan is completed.
What you lose
All your assets enter the bankruptcy estate. Apartment, car, savings: anything with real value will be sold. The debtor is left with the social-minimum living amount.
What not to do
Don't transfer assets to "friends" before filing. It gets discovered, and the trustee can claw back transactions up to 5 years back.
Consumer bankruptcy is a last resort, but sometimes the only way out. Before going there, also check consumer-restructuring options and creditor settlements.