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Latvia's first insolvent individual had debts EUR 95,000

Alla Petrova, BC, Riga, 14.07.2011.Print version
Debt liabilities of Latvia's first insolvent individual – Andris Bruvelis, were EUR 95,000 altogether, made up of apartment rent and consumer loan payments in Latvia and a loan he took out in Great Britain to buy a car.

Bruvelis said at a press conference today that, before opting for the insolvency process, he tried to reach agreement with banks, but they were unwilling to reduce monthly payment rates, reports LETA.


Bruvelis had taken out a mortgage on an apartment in ABLV Bank, another loan in BigBank, he also had a credit card from Nordea banka and several loans from British banks, of which one was meant for buying an automobile. Bruvelis though initially said that he had borrowed money to help his brother's business.


Bruvelis applied for insolvency in Great Britain, because one year ago Latvia's Insolvency Law had not yet been amended, plus he had liabilities in Great Britain, where he has been living for six years now.


Bruvelis told the press conference today that he had run up the debt after a car accident, which was the reason why he fell delinquent on his loan payments and was applied penalties by banks.


According to Bruvelis, he only had to give away the apartment, but no other property of his had to be sold. Creditors left him alone from the very first day he handed in his insolvency petition.


Bruvelis, who works as an auto electrician in Great Britain, is very happy with his new life. "I feel free from the liabilities, I do not owe anything to anyone and I can start everything from scratch," he said.


Clear Debt Solution representative, attorney Andrejs Smolenko, who helped Bruvelis in his insolvency proceedings, told the press conference that his company was currently providing assistance to approximately 20 Latvians in Great Britain, who wish to be ruled insolvent.


The insolvency process in Great Britain is very liberal, and it may be completed in a year's time. One must allow for LVL 430 upon filing for insolvency in Great Britain, and the minimum cost of the process is LVL 610.

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