How long does it take to write off loan debts in Ukraine?

Bankruptcy is a procedure that allows individuals and legal entities to settle their debts and protect themselves from the loss of sources of livelihood. Everyone who has decided to initiate the bankruptcy procedure is concerned about the period during which the procedure will last and when exactly the person can count on getting rid of debts.

So, let's consider two types of terms, the first - established by law, the second - those that may arise in practice, depending on the circumstances of a specific case.

What are the deadlines set in the bankruptcy procedure for individuals?

The first stage is the collection of necessary documents, which takes up to a month on average. After the documents are collected, the debtor must prepare a statement of insolvency with attachments to the court. The debtor can do this independently, but only by enlisting the help of qualified lawyers, he has the opportunity to prepare documents in the most reasonable time, which in practice is up to 2-3 weeks.

After the preparation of the documents, the application with attachments is sent to the court, where within 5 days the proceedings in the case must be opened. In practice, there are cases when the application can be left without movement, and a period of up to 10 days is given to correct the deficiencies. After sending the application for the elimination of deficiencies and the opening of proceedings, the terms established by law come into force, and here it is worth paying attention to the following:

The bankruptcy procedure includes two judicial stages, the first is the restoration of solvency, and the second is the recognition of bankruptcy.

The court begins the procedure by considering the possible restoration of the debtor's solvency, which may include changing the terms of loan repayment, in order to maintain the debtor's solvency. This involves the development and coordination of a restructuring plan with creditors and its approval by the court.

The term of approval is up to 120 days from the moment of opening the proceedings in the case.

In practice, the term may change, which is usually affected by the procedural nuances of the case, such as the postponement of court hearings due to a large number of creditors' claims, etc. After the final approval of the restructuring plan within the set time, its implementation period cannot exceed 5 years. If the debts for the loans received by the debtor for the purchase of housing are repaid, the term of the debt restructuring plan cannot exceed 10 years.

In the event that the restructuring plan is not approved within 120 days after the opening of the proceedings, the second stage of the process begins, in which the court makes a decision to recognize the individual as bankrupt and proceeds to the debt repayment procedure. From now on, the debtor's property is managed exclusively by the arbitration manager as the manager of realization. The repayment procedure includes an inventory of the property within 30 days from the date of the resolution and its subsequent sale at auction. After the realization and crediting of funds to a separate account, the realization manager begins to satisfy the demands of creditors according to the sequence established by the Code of Ukraine on bankruptcy procedures. There are no time limits at this stage, as they depend solely on the efficiency of the sale of the property at the auction.

After carrying out the above-mentioned actions, as well as in the event that the debtor has no property, the creditors' claims are recognized as forgiven and repaid.

What are the terms established in the bankruptcy procedure for legal entities?

The bankruptcy procedure of legal entities is almost similar to that of individuals. However, the differences are manifested in the fact that after the opening of the proceedings in the case, the property disposal procedure is first carried out, during which accounting and control of all the company's assets is carried out in order to preserve and rationally use them. Within this period, by convening a meeting of creditors, the future fate of the legal entity must be determined and one of the following two scenarios must be adopted:

• Rehabilitation of the debtor, the so-called restoration of solvency, which can be approved for a period of up to 5 years;
• The opening of the debtor's liquidation procedure, the legal term of which is set at 12 months, however, in practice, due to a significant amount of property, it may take longer.

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 guides in the process of writing off problematic debts. 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. Martial law helps citizens with proven insolvency to repay their debts, so you have a chance to get rid of the heavy burden of bad loans forever. For this, do not delay and contact us!