Article 25. Insolvency (bankruptcy) of an individual entrepreneur.
1. An individual entrepreneur who is not able to satisfy the claims of creditors related to his entrepreneurial activities may be declared insolvent (bankrupt) by a court decision. From the moment such a decision is made, his registration as an individual entrepreneur becomes invalid. 2. In carrying out the procedure for declaring an individual entrepreneur as bankrupt, its creditors for obligations not related to their entrepreneurial activity are also entitled to submit their claims. The claims of the said creditors, which were not declared by them in such a manner, remain valid after the completion of the bankruptcy procedure of the individual entrepreneur. 3. The claims of the creditors of an individual entrepreneur in the event of declaring him bankrupt shall be satisfied at the expense of the property belonging to him in the manner and in the order stipulated by the law on insolvency (bankruptcy). 4. After completion of settlements with creditors, an individual entrepreneur, recognized as bankrupt, shall be released from the performance of the remaining obligations related to his entrepreneurial activity, and other claims submitted for execution and taken into account when the entrepreneur is recognized bankrupt. The requirements of citizens to whom a person declared bankrupt is liable for causing harm to life or health, as well as other requirements of a personal nature, remain valid. 5. The grounds and procedure for declaring the individual entrepreneur a bankrupt or a declaration of bankruptcy by him are established by the law on insolvency (bankruptcy).
Links to other articles of chapter 3. Citizens (individuals):