The head files
A voluntary petition requires written consent from all farm members.
Seasonality matters
The filing includes expected income after the relevant agricultural period.
The complex is sold first
The law first seeks a sale of the enterprise or production complex as a whole.
Grounds and filing
Article 217 uses inability to satisfy monetary creditors, employee claims and mandatory payments. Under Article 218, the head signs the voluntary petition and all members provide written consent.
The filing also describes farm assets, personally owned member property and its acquisition sources, and income expected after the agricultural season. The same evidence accompanies the head’s response to a creditor petition.
Estate property
| Asset | General treatment | Evidence |
|---|---|---|
| Farm land | Included subject to land-transfer restrictions | Title, use and restrictions |
| Buildings and structures | Included when used for production, storage or processing | Title and purpose |
| Animals, poultry and produce | Farm property | Accounts, acquisition and existence |
| Land lease rights | May have monetary value | Lease, term and transferability |
| Personal member property | Excluded if a separate source is proved | Date, funding source and records |
Current Article 221 expressly covers land, capital and non-capital structures, animals, produce and other necessary assets. A bare assertion that an asset is personal is insufficient; acquisition outside common farm funds must be documented.
Sale sequence
Article 222 first requires auction of the farm enterprise. If unsold, the production and technology complex is offered as one lot. Only after those attempts may assets be sold under the later insolvency stages. Agricultural producers owning adjoining land receive the statutory preferential opportunity in the specified sale stage.
Consequences
Once the farm is declared bankrupt and liquidation proceedings open, the head’s registration as an individual entrepreneur ceases. Member exposure on particular obligations depends on contract participation, guarantees, common property and other legal grounds.
Practical steps
- Confirm the farm form, members and head’s register status.
- Separate farm debts, personal debts and secured obligations.
- Inventory land, machinery, animals, produce and lease rights.
- Document the acquisition source of personal member property.
- Prepare a realistic seasonal income forecast.
- Assess preservation of the enterprise or complex before filing.
See insolvency indicators and bankruptcy auctions.
Frequently asked questions
May the head file without member consent?
No. Article 218 requires written consent from every member for a voluntary filing.
Does a member’s personal vehicle enter the estate?
Not necessarily, if separate ownership and acquisition outside common farm funds are proved.
Can land be sold separately?
That depends on the sale stage and land restrictions; the enterprise or complex is offered first.
Does the head lose entrepreneur status?
Yes, when bankruptcy is declared and liquidation proceedings open.
Is a future harvest considered?
Expected income after the relevant agricultural period must be included in the filing evidence.
Official sources
Farm facing insolvency?
We can assess debts, assets, member consents and seasonal income without promising a predetermined result.
Initial consultation