According to the model chosen by Lithuania for the insolvency proceedings of the individual enterprise (IE) and the bankruptcy proceedings of the participant of IE (a natural person), the priority is given in time to the insolvency proceedings of the IE. Upon completion of the bankruptcy proceedings of the IE, the IE ceases to be a participant in civil law relations the claims of its creditors expire, but the obligations of the participant of the IE as a natural person to the personal creditors do not end. Prior to the Law on the Natural Persons Bankruptcy, it was not possible to write off debts of this kind and the creditors of a natural person were entitled to enforce their obligations in accordance with the procedure laid down in the enforcement proceedings for an unlimited period. Following the adoption of the LPB, this changed and gave the natural person the opportunity, as a participant of the IE, to request the opening of bankruptcy proceedings for the natural person after the bankruptcy proceedings of the IE were closed and before the uncovered claims of the creditors of the participant of the IE were not covered. Whether the chosen solution to the insolvency of a natural person entrepreneur in cases where they used an individual enterprise to conduct business is effective and adequately protects the interests of both the natural person entrepreneur and they personal creditors and creditors of the IE?