Personal bankruptcy in Slovakia: debt relief conditions
Legal status as of November 1, 2026
Personal bankruptcy can resolve part of the debt situation, but it can affect assets and does not eliminate all liabilities. Before making a decision, you need to compare the bankruptcy with the repayment schedule and find out which debts the debt relief will cover. It should start with a complete overview of debts, income, and assets, not with the intermediary's promise to take care of everything. [1] [2]
Who can apply for debt relief?
Debt relief under the Bankruptcy and Restructuring Act is intended for an insolvent natural person, including a person with business debts. For a natural person, the law associates insolvency with the inability to meet at least one financial obligation 180 days after maturity. Reluctance to pay or a short delay alone is therefore not enough. [1]
Enforcement or similar enforcement proceedings must be conducted against the debtor. In the event of bankruptcy, at least one year must have elapsed since the issuance of the authorization to carry out enforcement or from the commencement of similar proceedings. This one-year waiting requirement does not apply to a repayment schedule. The center of main interests and other legal obstacles are also being examined. Re-discharge can be requested no earlier than ten years after the declaration of the previous bankruptcy or the determination of the repayment schedule. [1] [2]
Bankruptcy may mean the sale of assets
In bankruptcy, the assets subject to bankruptcy are liquidated and the proceeds are used according to legal rules. It is therefore not correct to assume that the debtor will receive a debt relief decision and at the same time retain all of his more valuable belongings. Ownership shares, joint property of spouses, liens and previous transfers are important. [1]
Bankruptcy may be appropriate for a person whose income does not allow for long-term repayment, but the specific consequences depend on their assets. Anyone who owns an apartment, a car used for work or a share in real estate must check, before filing the application, which assets may be sold. The lack of ownership overview is a poor basis for such a decision.
Installment plan needs sustainable income
The repayment schedule allows for debt relief without the general liquidation of assets typical of bankruptcy. However, the debtor must manage to satisfy the creditors required by law. The law provides for a five-year period and a minimum satisfaction of unsecured creditors of 30 percent; at the same time, a test of higher satisfaction than in bankruptcy must also be met. This does not give the debtor freedom to choose an arbitrarily low instalment. [1]
The budget must take into account housing, maintenance, essential living needs, and debts that will not be affected by debt relief. Sustainable net income is crucial, not an optimistic estimate of future earnings. Furthermore, the preservation of assets does not mean the extinction of existing liens or the automatic forgiveness of the secured loan. [1]
Some debts will remain even after debt relief
The law protects several claims that debt relief does not eliminate. These include, for example, child support, compensation for damage to health or damage caused intentionally, a monetary penalty under the Criminal Code, and a secured claim to the extent covered by the security. Receivables from legal aid provided by the Legal Aid Center and other claims specified in Section 166c also have a special status. [1]
Debt relief is also not a license to create new debts. The law distinguishes between the time when claims arise and the decisive day. The effect against the debtor is not automatically transferred to the guarantor or other person securing the debt. If the loan was signed by multiple people, the position of each person must be assessed separately. [1]
Apartment ownership requires special consideration
The law protects a specified amount of the value of the debtor’s home; it does not generally guarantee that the apartment will not be sold. If the dwelling is encumbered by a lien, the security has priority over this value. When making a decision, it is therefore necessary to know the value of the apartment, the loan balance, the order of liens, and ownership relationships. [1]
Model example: the debtor has a stable income, a mortgaged apartment, and multiple unsecured consumer debts. Before filing for bankruptcy, he needs to compare the possible sale of the apartment with the real repayment schedule. The outcome depends on the financial figures and the security interests; the fact that this is the family’s only home does not provide universal protection against its sale.
The proceedings are being prepared through the Legal Aid Center
When filing a petition and until the appointment of an administrator, the law requires representation by the Legal Aid Center or an attorney designated by the Center. A normal private company cannot replace this legal procedure with its own promise of debt relief. Before the consultation, prepare a list of creditors, enforcement proceedings, assets, income, and previous property transfers. Information must be complete and true. [1] [2]
Good faith is important even after a court decision. Concealment of material assets, false information or intentional harm to creditors may lead to the cancellation of the debt relief; the affected creditor may claim it within the statutory six-year period. Transferring property to a relative just to avoid satisfying creditors is therefore not a safe solution. [1]
Before submitting a application, it is worth checking whether the debts really exist in the stated amount and whether some enforcement proceedings cannot be stopped for another reason. For manageable debt, an installment agreement may be more appropriate. Debt relief should be based on a comparison of specific options, not just the total number of letters from creditors.
Frequently Asked Questions
Will I get rid of the child maintenance owed through personal bankruptcy?
A child’s maintenance claim, including ancillary amounts, is one of the claims unaffected by debt relief. [1]
Can I apply even if I don't have any assets?
Missing assets in themselves do not preclude discharge through bankruptcy. However, other legal conditions must be met and the procedure must be completed through the Legal Aid Center. [1] [2]
Will I keep the apartment I live in if I file for bankruptcy?
Such a guarantee cannot be given. The bankruptcy regime of the property, the value of the dwelling and any liens are decisive; legal protection of a certain value does not equal a ban on the sale of the apartment. [1]
If you are considering personal bankruptcy, prepare a complete overview of your debts and assets. We will help assess legal risks and available alternatives; the debt relief application itself is handled through a legal process through the Legal Aid Center.
Legal sources
[1] Act No. 7/2005 Z. z. on Bankruptcy and Restructuring — § 3 para. 2, § 166 to 166k, § 167h et seq., § 168c and § 171c; version effective from 1.10.2025
https://static.slov-lex.sk/static/SK/ZZ/2005/7/20251001.html
[2] Legal Aid Center – Basic Information on Personal Bankruptcy — Updated 8.6.2026; legal representation and the procedure for preparing debt relief
https://centrumpravnejpomoci.sk/sekcia/7-zakladne-informacie-o-osobnom-bankrote