According to the Bankruptcy Law, it may, even in the case of persons who have ceased to conduct business activity – however, only if it has not been a year from the date of removal from the relevant register.

In what circumstances can the creditor submit such an application?

Does the entrepreneur have the opportunity to protect his business against unwanted bankruptcy? The situation is completely different for consumers. Only the consumer has the right to file for bankruptcy. There is a general belief that if the court rejects your bankruptcy petition, you must wait 10 years to be able to apply again.

It turns out that it is not always. It is possible to make an earlier application if you invoke the grounds of equity or humanitarian clauses. Importantly, if the debtor refers to these clauses in his application, it is the court’s responsibility to interpret them and also to refer to the debtor’s claims.

These clauses oblige to bypass negative premises (only if it actually turns out that the debtor meets the considerations of equity and humanitarianism) which would normally cause the court to reject the application.

What distinguishes an entrepreneur’s bankruptcy from consumer bankruptcy?

For consumers, it is a right they can use, but they don’t have to. In the case of entrepreneurs, a declaration of bankruptcy is compulsory – if of course there are grounds for its declaration (the company’s insolvency).

How can an entrepreneur protect his business from bankruptcy?


If a company lacks financial liquidity and fails to meet its financial obligations, then the creditor may file for bankruptcy, which may be to the detriment of the entrepreneur.

A salvation in this situation is the submission of a restructuring request, as also written in Article 9a. Bankruptcy Law: “You cannot declare bankruptcy of an entrepreneur from the opening of the restructuring procedure to its termination or final termination.” What if both applications were filed with the court at the same time?

Here, restructuring always has priority


The bankruptcy court is obliged to suspend the consideration of the application for declaration of bankruptcy until a final decision on the restructuring application has been issued.

However, the suspension of his recognition does not exclude the possibility of securing assets, as we wrote in the article “Merits of Bankruptcy Law part 3: Security proceedings”.

Are you wondering if bankruptcy is a good solution for you? Are you looking for tips? Check out our free ebook “Consumer bankruptcy, or how to start a life with a blank card” and you will surely find many answers to your questions.

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