Consequences of bankruptcy of an individual in Ukraine

The bankruptcy procedure for individuals is an extraordinary measure in the event that it is impossible to settle debts and maintain financial stability.

First of all, you should pay attention to the restrictions that arise after the recognition of a natural person as bankrupt in Ukraine.

The following can be attributed to those defined by law:

1. After an individual has been declared bankrupt, insolvency proceedings may not be opened at his request for the next five years. This refers to the situation when the debtor was unable to fulfill his obligations to creditors and filed for bankruptcy. However, if the debtor has repaid all debts in full in accordance with the law, insolvency proceedings may be opened.
2. Within five years after the recognition of a natural person as bankrupt, this person must notify in writing of his insolvency to other parties with whom he plans to enter into loan agreements, credit agreements, suretyship agreements or pledge agreements. This means that such a person is obliged to honestly and openly inform his partners about his financial situation in order to avoid possible problems in the future.
3. Once an individual is declared bankrupt, he cannot be considered to be in good standing for the next three years.

But on the other hand, bankruptcy has positive consequences. Which ones exactly?

1. At the end of the procedure, the individual receives relief from most or all of his debts, which allows him to start life with a clean slate. This can be particularly useful if the debts exceed the individual's ability to pay them and there is a persistent threat of insolvency.
2. In the process of bankruptcy, the property of an individual constitutes the liquidation mass, which ensures the demands of creditors. This means that creditors can demand the sale of physical property in order to satisfy their requirements only in cases where it is part of the property complex, with the help of which their requirements will be secured. Thus, bankruptcy can help protect an individual's assets from foreclosure by creditors.
3. Bankruptcy can help an individual learn to better manage their finances. During the bankruptcy procedure, a natural person is obliged to show his financial statements according to the accounts. This can help to understand financial gaps and develop an action plan to address them in the future. In addition, after the bankruptcy procedure, an individual will be obliged to be more careful in his property decisions to avoid a repetition of the situation that caused his insolvency.

The lawyers of "PRIKHODKO & PARTNERS" help with the registration of bankruptcy "turnkey" from the very beginning of this procedure, and are ready to become your reliable partners in the process of writing off problematic debt and protect you from all possible risks of the process. To do this, you should simply leave an application on our website. Communication is conducted in any convenient way for you. The consultation will reveal all the nuances of the case and plan a further course of action. For this, do not delay and contact us!