Article 25. Insolvency (Bankruptcy) of the Individual Businessman

1. The individual businessman, who is incapable of satisfying the claims of his creditors, related to his performance of business activities, may be recognized as insolvent (bankrupt) by the court decision. From the moment of such decision being passed, his registration in the capacity of an individual businessman shall be invalidated.

2. During the implementation of the procedure, involved in recognizing an individual businessman to be bankrupt, his creditors by the obligations, not related to his performance of business activities, shall also be entitled to the right to file their claims. The claims of the said creditors, filed by them in this order, shall stay in force after the completion of the procedure, involved in declaring the individual businessman to be bankrupt.

3. The claims of creditors of an individual entrepreneur, if he is deemed bankrupt, shall be met with the property he owns according to the priority ranking envisaged by a law on insolvency (bankruptcy).

4. After completing the settlements with the creditors, the individual businessman, recognized as bankrupt, shall be relieved of discharging the other obligations, related to his business activities, as well as of satisfying the other claims, presented for execution and taken into account when recognizing him to be bankrupt.

The claims of the citizens, to whom the person, declared bankrupt, bears responsibility for inflicting injury to the life or the health, and the other claims of a personal nature shall stay in force.

5. The grounds and the procedure for the court's recognizing an individual businessman to be bankrupt, or for his declaring himself bankrupt shall be established by the Law on the Insolvency (Bankruptcy).