In 2019, a new document came into force in Ukraine that regulates the process of restoring the solvency of debtors - the Bankruptcy Code. The norms of this legal act enable individuals (including private entrepreneurs) to declare in court their inability to pay off debts in full, and after going through all stages of production to pay either part of them or to write off the entire amount.
The final and transitional provisions of this Code provide that from October 21, 2020 the moratorium on the collection of property provided as collateral for loans in foreign currency will be terminated. After this, the bankruptcy of individuals can become the only tool for preserving housing purchased on a mortgage or contributed as collateral for a loan.
In accordance with Art. 131-2 of the Constitution, only the lawyer is entitled to represent the interests of the debtor in court. Professional legal assistance in insolvency cases of individuals in Kiev and Ukraine is provided by the lawyer association “Krikun and partners”.
Our advantages:
- more than 11 years of legal practice (working since 2008);
- well-coordinated team of highly qualified lawyers, financiers, auditors, experts in banking, economic, civil and other branches of law;
- Representation in different regions and settlements of Ukraine;
- an integrated approach to solving the problems and tasks of each client;
- the opportunity to receive both a one-time service and subscription legal support.
Procedure for declaring individuals insolvent
Based on Art. 115 of the Bankruptcy Code, the debtor may file a lawsuit with the court to open proceedings in the case of his insolvency in the presence of one or more of the following facts:
- the amount of debt on the date of application exceeds 30 minimum wages;
- he stopped repaying planned payments in the amount of more than 50% of the monthly amount for obligations for 2 months;
- in executive proceedings, a decision was previously issued on the absence of property to be collected;
- there are circumstances due to which in the near future there may be a threat of insolvency.
The bankruptcy procedure of an individual consists of the following stages:
1. Submission to the economic court of the relevant application and appropriate documents.
2. The opening of production, an official announcement about this in the media to identify all creditors.
3. The introduction of a moratorium on debt collection for a period of 120 days.
4. Fees of creditors for the participation of the arbitration manager at a preliminary court hearing.
5. The decision of the creditors meeting to restructure and / or write off debts, the approval by the court of a plan for repayment of creditors' claims.
6. Implementation and completion of the debt restructuring plan.
If no decision on restructuring is made within 120 days from the date of the opening of the proceedings, the court recognizes the insolvency, appoints the manager of the sale and introduces the procedure for paying off debts at the expense of all the debtor's property, including the property that he received after the recognition of bankruptcy and until the completion of this procedure. The liquidation mass does not include the only housing with a limited area, as well as property not subject to recovery by law.
Lawyer services in cases of bankruptcy of individuals
Employees of the lawyer association “Krikun and partners” provide professional legal support to clients in cases of insolvency of individuals in the following forms:
- advice on bankruptcy, restructuring and debt relief;
- the choice of the optimal legal strategy for action in court to minimize the amount of the recovery or its write-off in full;
- representation in court proceedings and in cooperation with creditors;
- legal protection against illegal methods of debt collection, interest and penalties on them by creditors and collectors;
- other types of lawyer services as agreed with the client.
You can discuss the terms of cooperation with a lawyer or get an answer to your question by calling our contact center, or by sending an electronic application using this link.
