If the debtor has become permanently insolvent, they have the option (and in certain cases, the obligation) to file a bankruptcy petition with the court to initiate bankruptcy proceedings. A debtor is considered insolvent if they are unable to satisfy the claims of creditors and this inability is not temporary, but due to the debtor's financial situation.

How to file for bankruptcy?
In order for a bankruptcy petition to be accepted by the court, the debtor must substantiate his or her insolvency when filing the petition. Establishing the grounds for insolvency means setting out and proving the facts that confirm the debtor's insolvency. To this end, the bankruptcy petition must be accompanied by an explanation of the reasons for the insolvency and a list of debts.

The statement must set out the reasons for the insolvency and show why the insolvency is permanent.

In the list of debts, you must indicate your assets and the composition of your debts (names, addresses and claims of creditors).

Who has to sign?
According to the law, the debtor himself (or, in the case of a legal person, the debtor's legal representative) must sign the declaration and the list of debts.

Where to file a bankruptcy petition?
Bankruptcy cases are dealt with by county courts. There are four county courts in Estonia: Harju County Court, Viru County Court, Tartu County Court and Pärnu County Court. The petition for bankruptcy is filed at the court of the county court in whose area of jurisdiction the business is located or the debtor is a self-employed person.

How much is the bankruptcy fee?
The fee for filing a petition for bankruptcy of a debtor is EUR 10 (§ 59(8) RLS).