First Personal Bankruptcy in Croatia Declared

Total Croatia News

An unsuccessful entrepreneur from Krapina is the first person in Croatia which has declared personal bankruptcy.

Three months after starting proceedings for personal bankruptcy, the Municipal Court in Zlatar officially confirmed the first personal bankruptcy in Croatia, which was filed by a 51-year-old former businesswoman from Krapina. Based on data, the court concluded that pension of less than 1,400 kuna, which is the only income of the bankrupt entrepreneur, was not enough to pay her debts to a number of creditors, mainly banks, to which she owes about 1.4 million kuna without interest. A business database shows that the entrepreneur started her business in the 1990s, when she founded her company which was closed down in 2013, reports Večernji List on October 17, 2016.

The court found that the former entrepreneur had no assets from which she could settle her debts. However, her debts will not be written off immediately, but in five years after the probationary period passes. The entrepreneur has filed an appeal and asked that the probation period be reduced to just one and a half year.

The first personal bankruptcy is interesting for many in Croatia, including more than 300,000 citizens with frozen bank accounts. Proceedings for personal bankruptcy have so far been initiated by more than 600 citizens who owe the total of 300 million kuna. About two hundred cases have reached the courts, but personal bankruptcy has been confirmed just for the retiree from Krapina.

Expedited proceeding, where the bankruptcy process can be done in just one court hearing, is provided only for those who do not have assets to pay back their debts, nor is there probability that they will be repaid from future revenues. However, even in such cases, the court establishes a probationary period of between one to five years, during which period their financial life is controlled by an assigned bankruptcy trustee. If debtors do have assets, then they are sold to pay off debts.


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