Senior lawyer
Lawyer in the practice of bankruptcy of individuals and individual entrepreneurs. Specializes in write-off of bank and MFI loans through the bankruptcy procedure.
Case: Claims for all credit obligations in the bankruptcy procedure of an individual were written off
Kolesnyk Ilya Service: Bankruptcy of an individual
On 04/04/2023, client Yulia contacted us with problematic debts in microfinance organizations and banks.
We conducted a detailed consultation and found that the client has total current debt in the amount of UAH 956,794.99, the total number of financial institutions is 26.
Agreed on a work plan for writing off claims:
The client wanted to write off the debt in full and restore her credit history. For this, it was necessary to collect the necessary documents, prepare a statement of insolvency with declarations of property status to the court and protect the interests of the client in the framework of the legal process.
We have prepared and submitted an application for insolvency with all attachments to the commercial court, waiting for the court to check it for compliance with the current legislation. Due to the fact that in bankruptcy cases judges often evaluate all the facts of the case according to their own convictions, we had to go through a rather difficult path to opening the proceedings in the case by correcting the deficiencies and resubmitting the application to the court.
After using all possible resources on our part, we managed to get the Commercial Court of Odesa region to open proceedings. The decision to open insolvency proceedings imposed a moratorium on creditors’ claims, which meant the actual suspension of enforcement and court proceedings, as well as the imposition of fines, and an arbitration administrator was appointed, whose candidacy was submitted by the legal company.
During the set period, 3 banking institutions, namely JSC “PUMB”, JSC “UNIVERSAL BANK” and JSC “SENS BANK” declared monetary claims for the total amount of UAH 335,080.71, claims for other credit obligations after the creditors missed the application deadline requirements were canceled.
We, together with the arbitration manager, conducted an analysis of the client’s property status and verified declarations about her property status. According to the results of the inspection, it was found that she receives the minimum wage and does not have any property, at the expense of which she can satisfy the demands of creditors, as well as additional aggravating circumstances that led to the insolvency of loans were discovered.
As required by the procedural legislation, we also prepared a debt restructuring plan, based on the client’s property status, which was submitted to the creditors for approval, but the creditors did not approve this plan.
Since, based on the norms of current legislation and court practice, the purpose of the bankruptcy procedure is primarily to restore the debtor’s solvency by agreeing with creditors on all possible debt payment measures, and only as a last resort to declare the debtor bankrupt and write off the debt in full, then before us the task was to find arguments for the court to proceed to the debt repayment procedure and declare the client bankrupt, also taking into account the fact that the creditors refused to agree to the restructuring plan proposed by the debtor.
Working for this result, we submitted additional explanations to the court, in which we cited the reasons for the debtor’s good faith, the authenticity of all the information provided in the declarations, as well as the lack of adequate income and property, at the expense of which it is possible to settle with creditors. Additionally, it was noted that creditors will show dishonest behavior on their part and refuse to restructure the debt.
The final hearing in the case was held on February 16, 2024, in which the Commercial Court of the Odesa Region, composed of judge Grabovan L.I. made a decision to recognize the debtor as bankrupt and open the debt repayment procedure, requiring the arbitration manager to provide the results of the debtor’s property inventory within a month.
The final stage of the case was the reporting of the debtor’s lack of property, and on April 10, 2024, we received a decision of the Commercial Court of the Odesa region to close the proceedings in the case and fully discharge the debts. Thus, we managed to free Yulia from the debt in the amount of UAH 956,794.99.
Photo of the court decision:
We congratulate Yulia on the successful completion of the case and thank you for trusting the law firm “Prykhodko and Partners”! If you also need a positive court decision in the bankruptcy procedure of an individual – fill out the form below!
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