New Consumer Bankruptcy Laws

On 31 March 2009, a new concept of consumer bankruptcy will be introduced, making it possible for individual debtors who are not engaged in business activities to be declared bankrupt.

The key points of the new law are:

• individuals who have become insolvent due to extraordinary circumstances beyond their control may be declared bankrupt once every ten years. This is not available to those who have been dismissed from work through their own fault or with their consent
• bankruptcy may only be declared at the individual's request (creditors may not file a bankruptcy petition)
• in principle, the bankruptcy proceedings are the same as those for liquidating the bankruptcy estate in bankruptcy proceedings for entrepreneurs