FAQ en

FAQ

EU insolvency is an insolvency proceeding in a Member State of the European Union where there is a more favorable insolvency law than in your home country. Your creditors lose the right to the claim and will no longer be able to enforce it against you through a levy of execution, seizure of an account, registration of a bank or an economic information file. The legal basis is, inter alia, the REGULATION (EU) 2015/848 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 20 May 2015 on insolvency proceedings as well as the legal and tax provisions valid in the respective country and home country.

Insolvency in Latvia is only possible from a debt amount of 7000,- EUR. There is no upper limit. We look after clients who have debts from 7000,- EUR up to several million euro.

No, this is not possible. You must complete the proceedings, even if you are threatened with the refusal to discharge your residual debt. The preparations for an EU insolvency can already be made during the current insolvency so that you will not lose any time with the preparations after the refusal of the residual debt discharge.

Yes, this is possible. Short deadlines must be taken into account and we will be happy to inform you about them. Register for a free and non-binding initial consultation.

Yes, this is mandatory. However, this does not mean that you are no longer allowed to stay there. In this case, the tax law in your home country and in the EU member state in which you are declaring insolvency must be observed. We will be happy to advise you in an initial consultation free of charge.

This is not possible as a permanent employee. It is possible as a self-employed person, freelancer or company owner. In this case, you will also receive considerable tax advantages. We will be happy to advise you on this in our free initial consultation.

his is the most frequently asked question by our clients. Contrary to all the reports circulating on the Internet, no exact period has been specified due to the REGULATION (EU) 2015/848 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL from20 May 2015 on insolvency proceedings. The law only defines that the administrative structure must exist for at least 3 – 6 months before the insolvency application. Your stay in Latvia also depends on the activity you perform. An analogy from the tax law cannot take place here, whereby the tax law must be absolutely observed. Leave us your contact details and we will call you back for a free initial consultation in which we will also clarify this question on the basis of your personal situation.

This is a very important issue in order not to become apparent under criminal tax law. Every EU Member State has different tax rules. Even if you live abroad, you may be obliged to pay taxes in your current home country. The personal and economic circumstances must be taken into account. In order to give you a well-founded answer tailored to your situation, we need to know more about it. So, book a free initial consultation with one of our lawyers and they will be able to answer this question.

An insolvency application can be rejected if you have provided false information to the creditors. This applies to every EU member state. Insolvency can also be refused if you have acted dishonestly.

If you are bankrupt in another Member State of the European Union or only havedebts resulting from the granting of child support.

Insolvency in Latvia makes no sense if you have debts of less than EUR 30,000 or if you are in a permanent and unlimited employment relationship which is not in Latvia.
Tax debts, debts from guarantees, debts from the purchase of goods, claims from a managing director’s activity (direct liability), credit debts, rental debts.
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Debts from criminal convictions (fines), child support, debts of a corporation, debts of others (third parties), administrative fines.
Apart from your mother tongue, you do not need any other language skills. With us, you will be able to speak in your mother tongue. Our lawyers and attorneys will translate everything for you for the insolvency administrator and the court.

Part of our service is the preparation and implementation of the structure. We can help you find accommodation, register in Latvia, get a bank account and credit card, register or buy a car, register your pet, doctor, etc. >>> See our catalog of services.

Without this, an EU insolvency is not feasible. An EU insolvency is simple and guaranteed if you comply with the legal requirements. We make sure that you meet all legal requirements.

Basically, there is nothing wrong with that. However, you will need a tenancy agreement in your name. There are also a few other points to consider. A WG or subletting by Airbnb is not possible. Take advantage of our free initial consultation with a lawyer to find out about the possibilities.
This is not an option unless you are sharing with your partner or family.
Yes, we will be happy to explain exactly how you can proceed with work, in particular how to set up your own business and possibly set up a corporation, in our free initial interview. Send us your contact details and we will call you back. Or book an initial meeting directly via our calendar.

Yes, this is easily possible. We will be happy to advise you on your personal needs during our free initial consultation. >>>> Arrange a free initial consultation now. >>>>

This is completely excluded. Latvian law does not provide for a creditor application. It should be noted that under certain circumstances, you may be subject to an insolvency application in Germany even though you are registered in Latvia. Take advantage of our free initial consultation with a lawyer to find out more.
You can and should even give your new address in Latvia to any creditor who asks you for it. Be transparent with this information. The more transparent you are, the quicker you will have your peace of mind. Moreover, this transparency only brings advantages for the COMI.

A distinction must be made between two legal transactions. Cancellation, especially in the case of Germany or Austria, does not automatically mean that you can no longer be filed for insolvency. Only under certain conditions can no insolvency proceedings or secondary proceedings be initiated against you. In principle, you receive protection against enforcement immediately after the opening of your insolvency proceedings, partial protection immediately after your deregistration in your home country.

The costs of the insolvency administrator amount to 870 EUR and the court fees to approx. 70 EUR.
The costs depend on your lifestyle and, of course, your wallet. As Latvia has a much lower cost of living than England (London) or Ireland (Dublin), it costs about 500,- EUR per month for the whole structure.
You will receive the judgment at the end of the insolvency proceedings by the court. The judgment will then be translated by us into the language of your home country by sworn interpreters. An apostille will be issued.

As a result of the new version of the REGULATION (EU) 2015/848 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL from20 May 2015 on insolvency proceedings, which entered into force in September 2017, there are no longer any ambiguities regarding the interpretation of the statutory provisions.

Pursuant to Article 20 of REGULATION (EU) 2015/848 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL from20 May 2015 on insolvency proceedings, the opening of insolvency proceedings in any other Member State, without any formalities being required, will have the effects which the law of the State of the opening of the proceedings attaches to the proceedings. Paragraph 2 states that “the effects of proceedings under Article 3(2) may not be called into question in other Member States”.

Thus, recognition in your home country is guaranteed by law. Previous discussions have been dropped as relevant statutory provisions exist. See our detailed article on the European-wide recognition of residual debt discharge.

Basically, settlements only make sense if they give you a significant advantage. In our opinion, it makes no sense to conclude a settlement in which you have to pay more to your creditors than insolvency proceedings in other EU countries cost. After all, you want to do better than before and achieve quick and cost-effective debt relief. We will be happy to advise you on this.
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