DEBT RELIEF PROCESS
Bona Artis Law Firm with numerous successes deals with civil bankruptcy cases, so-called debt relief process. At this point, we would like to explain briefly, what the civil bankruptcy actually is.
Civil bankruptcy is an institution that allows to reduce or cancel the obligations of a natural person that does not conduct any business.
Civil bankruptcy has two main functions:
1. debt recovery- its purpose is to satisfy the claims of the creditors equally. The point is to achieve joint and equal satisfaction of claims (payable and not due) of consumer creditors accumulated in one proceeding instead of individual court and enforcement proceedings. In bankruptcy proceedings, whole or a part of the consumer’s assets is liquidated (sold). The funds thus obtained are transferred to satisfy the claims of the creditors who, at a given time, reported the existence of their claim to the judge-commissioner.
2. debt relief – consumer bankruptcy enables the consumer to be released from debts.It leads to the cancellation of obligations that arose before the date of the declaration of bankruptcy and were not satisfied in the bankruptcy proceedings or as a result of the repayment plan. It is also possible, under exceptional circumstances, to lengthen the consumer without making a repayment plan. As a consequence, the ultimate effect of the bankruptcy proceedings is the total release of the consumer from debt.
3. The institution of consumer bankruptcy allows to start a new life without debts. We would like to invite you to read our blog dedicated to consumer bankruptcy.