Legislation and Practice of Personal Bankruptcy in the Slovak Republic

Personal bankruptcy allows an individual person to get rid of financial obligations. Legislative regulation of the market economy of post-communist countries of Central and Eastern Europe is characterized by one specific feature - a very weak protection of debtors and often total absence of opportunities for personal bankruptcy. Since 2006, personal bankruptcy is enacted also in Slovakia. Even though, this possibility is used by only a tiny percentage of borrowers. Current statistics indicate that the using of this option increases year by year, but it is still a low number of the population. The contribution brings the issue of personal bankruptcy which addresses the unfavourable financial situation of individuals in that case, if they fulfil the statutory requirements as well as the legal process of bankruptcy proceedings in Slovak Republic.