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.