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Insolvency lawyerTadas Ugintas
LT

Personal bankruptcy

Personal bankruptcy

Unable to keep up with loan and other debt payments? Enforcement by bailiffs is not reducing the overall debt? We will assess whether you can apply for personal bankruptcy in Lithuania and whether the process would benefit you. We can help you:

  • assess whether bankruptcy is an option;
  • collect and prepare the documents the court requires;
  • file the application to open personal bankruptcy proceedings;
  • prepare the solvency restoration plan;
  • represent you in court and at creditors’ meetings;
  • resolve disputes with creditors and the bankruptcy administrator.

We act for clients throughout Lithuania. Most questions can be dealt with remotely, in English.

Frequently asked questions

How large must my debts be to qualify for personal bankruptcy?

The general rule is that your debts must exceed 25 minimum monthly wages (MMA). This threshold is indexed every year. Obligations that by law are never written off (maintenance, for example) are not counted. So even with a large total debt, the court may refuse to open proceedings if the part that can be written off does not reach the threshold. Please note that on 4 June 2026 the Lithuanian Parliament adopted amendments under which the minimum debt requirement is removed from 1 January 2027, and insolvency will be assessed on the person's actual financial situation. We will assess your situation under the rules that will apply at the time.

Will I lose my home if I go bankrupt?

That depends on whether the home is mortgaged and on any agreement with the mortgage creditor. Mortgaged property is usually sold to pay the debts, but the law makes it possible to keep the home if an agreement is reached with the mortgage creditor and this does not conflict with the interests of other creditors. Each case is assessed individually. At the first consultation we will tell you which scenario is likely in your situation.

How long does personal bankruptcy take?

Once the court opens bankruptcy proceedings, a solvency restoration plan begins, which usually lasts at least three years. During this period part of your income goes to creditors under the plan approved by the court. When the plan has been completed successfully, the remaining unpaid debts are written off by court ruling.

Which debts are not written off even if the bankruptcy is completed successfully?

The law sets out a closed list of debts that are not written off: maintenance, compensation for damage caused by a criminal offence, certain fines, and the mortgage creditor's claim where a separate agreement was made to keep the mortgaged property. All other debts, such as consumer credit, leasing, utility bills and loans from private individuals, are written off once the process is completed successfully.

Can I file for bankruptcy if I am working and have a regular income?

Yes. Having an income does not prevent bankruptcy. On the contrary, a regular income is needed to carry out the solvency restoration plan, because part of it will go to creditors over the three-year period. You cannot file for bankruptcy if you have acted dishonestly in the last three years, if you have already been bankrupt in the last 10 years, or if your insolvency was caused by harmful habits or a criminal offence.

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