Too easy personal bankruptcies

Much as last year, over a thousand Slovaks a month are filing for personal bankruptcy this year. Bankers and collection agencies estimate a third of them could avoid bankruptcy, as previously they were repaying at least some of their debts. A growing number of Slovaks run up high debts just before filing for bankruptcy. Courts, though, have only ruled that a bankruptcy filing was fraudulent in five cases. Almost all personal bankruptcies end up due to lack of assets, i.e, the creditors do not get a cent of their debts. Creditors can challenge a bankruptcy at courts within six years. Despite pressure from banks, the Justice Ministry does not plan to tighten the bankruptcy legislation.

(etrend.sk)