personal bankruptcy law in Malta

Hi guys, I come from Romania, I used to have a large company there, unfortunately with the crysis it all went down the hill, banks in Romania weren't supportive, the authorities gave me a push over the cliff, so I have some debts I couldn't pay. In Romania there isn't currently any personal bankruptcy law as in other states. What are the chances of declaring myself as a person (not as a company) bankrupt in Malta? What does it mean?

Your chances are zero to declare bancruptcy in Malta !

And why should they be ? What do your financial problems in Romania have to do with Malta? If I'm broke I leave the country and start it off again ? Once, twice ......
Get your act together and don't give us Expats a bad reputation!

Otherwise get your act together and take a lawyer .

hunterboytm :

Hi guys, I come from Romania, I used to have a large company there, unfortunately with the crysis it all went down the hill, banks in Romania weren't supportive, the authorities gave me a push over the cliff, so I have some debts I couldn't pay. In Romania there isn't currently any personal bankruptcy law as in other states. What are the chances of declaring myself as a person (not as a company) bankrupt in Malta? What does it mean?

Hi, unlike others...let me welcome you to the site, and spare you the unneeded and unfair judgement, and actually offer you perhaps something more useful.

There absolutely are bankruptcy laws in Romania, both for individuals (persoana fizice) and business entities (persoana juridice).  How have you gotten the impression that no laws exist?  If the debts are under the business, there might not be a need for you as an individual to file for bankruptcy, only the business entity would need to petition the court for this.  In any case, if the debts are all in Romania, then a Maltese court would have no jurisdiction unless I'm mistaken.  You would need to seek legal counsel in Romania, especially if you don't understand the implications of filing for insolvency.  Usually, it implies the restructuring of outstanding debts.


Thank you or the advice. The problem is there have been some debts that I have signed as a guarantor as a private person, so, despite the fact that the company has undergone insolvency, the debts remaind due on my name. The personal banckruptcy law in Romania ha been postponed for next year. The law existats, it was supposed to be in procedure starting with this year, however, it has been postponed. The only protection for debtors like myself is that the creditor isn't allowed to charge your full wage, but only 30% of it for the first creditor, and another 20% for the second, and any others should wait in line until you pay those debts and than they can take the place of one of the irst two and so on.
However, if someone wants to take money from my wage in Malta, there is a chance that they may do that thru some long and costly procedures, however, the chance exists. I was wondering, what percentage of my wage can they take? Is there a form of protection?
Obviously if this will happen, I shall probably move to another country, like UK, where the personal bankruptcy procedure lasts a year, after having spent the first 6 months there and having you main point of interest in UK.
And, thank you for your support. I doubt that financial problems can say anything about the quality of a human being. Being poor due to circumstances doesn't mean I am disrespectufl, uneducated or an idiot just mocking the rest of expats. I'm just an average guy that keeps his problems in his closet. I was just asking for advice. Thank you!

Hello Hunterboytm!
You are absolutely right! Beng in a financial hole does not mean you are uneducated, disrespectful or an idiot! I support you and wish you every piece of good luck going! I hope that you can sort out everything and settle in Malta if that is your wish!
Please don't let unkind words get to you 😁
Most of us are all trying to get by and make ends meet are not alone!
Take good care!

Thank you very much. I had a few rainy clouds above my head earlier when I saw that post. However, I kinda had to learn to be strong in the past few years. So, you have no idea what a big smile I had reading your post. Thank you!
I lived in UK last year, and could have filed there for bankruptcy, which is easyer and ends sooner. I was just wondering if I can take any precautions here, or, if there are some laws to protect me just in case. I really like my job, the island and everything, and this was the reason why I was asking. I am aware that at some point I shall have to undergo thru this procedure, and I thought I could do it here....maybe....
Thank you for your kind words! It means a lot to me!

I'm not sure of the Bankruptcy laws in Malta so I cant advise you on this, but I would think you could start afresh in another Country?!
Anyway.....we have to stick together and this is what I assumed this Forum was for....Support and kindly advice!
Although its not what is always offered, as I've read on here the last few months!
But generally, people on here are sweet and kind and adult enough to offer very real solid advice!

Stay strong!
You will get to where you want to be 😉
Kindest thoughts

I'm totally with Romaniac and Debbie, financial problems do not define a person! And I'm afraid to say that reading ricky's post (a poster whose advise I usually find helpful on this forum) has irritated me a lot!

I know from my own relatives that financial problems - often caused by banks and outer circumstances and not the person themselves... - can be a vicious circle for years or decades. In the case I know - a fashion shop that just didn't go as well as planned - for the past 25 years! And the person in question still only receives 75% of her wages, and the rest goes away for her debts...

Anyway, I wish you the best of luck with starting afresh!!!


As Romania is in the eu and your a residence in Malta then you can file bankruptcy in the Maltese courts

You are bound by the laws of the country in which you file bankruptcy not by your home country

Hi, thanks for the reply. I know that. What I couldn't find is Malta's law regarding personal bankruptcy. I think there isn't such a law here. The closest I have found is the protection of a trader as a phisycal person in the commercial code.
I think the best thing is to ask a lawyer for advice.
Thank You!

I replied to the original poster about filing for personal bancruptcy in Malta for debts incured in another country.

The original poster is well aware and in the know about the issues as documented in his posts.  There are always two sides : Someone owes money and someone has lent the amount !

As Romaniac pointed out there are laws in place in the country of the poster. Malta has, as I posted, no such debt restructuring laws like the UK or GErmany. Of course you can file for bancruptcy in Malta. The debtors will have to be heard before the magistrate in Malta - maybe not such a good idea if they are in Romania.

Of course running up debts that can't be repaid does not mean that the person involved is a bad person but that should be solved in the home country and not by looking for loopholes in foreign countries. And , as I replied, Malta is not a good choice to look at.

The UK is probably the best option. Germany means surrendering your income for 7 years !

So I have no bad feeling about my reply as I do not beat about bushes  and give correct advice.


Okay. Thanks for the advice. Uk is indeed the best choice.

You won't be able to go bankrupt in the uk whilst resident in another country- you have to apply in the country your in

Yup, I know. Maybe I'll move back to UK in a few years. Who knows :). Thank you for your support!

As far as i know if you are declared bankcrupt in your country, it does not help moving to another eu country. You have to handle it where the bancruptcy was declared first even if you move.

Also at least in germany if you have tax debt or health insurance or anything government related and they notice you move to uk (for example) they will just file bankcruptcy for you. Dont know the laws in your country though.

Only if you have not yet declared bancrupt yet you can do it in another country.

Also eu wise fleeing will not help. I dont know the english words, but if a debt is offical in your home country, maltas legal system can be used to collect it from you in malta. Its pretty easy now. Even worse, if malta has no protection they can eventually take everything as far as i know.

You should ask an expert.

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