How much does the bankruptcy procedure of a legal entity cost in Ukraine?

According to the Code of Ukraine on Bankruptcy Procedures for Legal Entities, initiation of the procedure can be entrusted to both the debtor and the debtor's creditors. The law establishes mandatory payments that must be borne by each of the participants in the process.

What is the cost of the procedure for legal entities and what mandatory costs are included in it?

The law defines two main types of costs in the bankruptcy procedure for both parties:

• Remuneration of the arbitration administrator;
• Court fee for submitting an insolvency petition to the court.

1. Regarding the remuneration of the arbitration manager, it is worth noting that it is basic and additional.

The main remuneration has a fixed amount and is paid in a mandatory manner for the main term of the exercise of the powers of the arbitration administrator.

An additional one is up to the parties if the procedure lasts longer than the specified period.

As for the mandatory remuneration, according to Article 34 of the Code, in order to open proceedings in the case, the proof of the advance payment of the arbitration manager's remuneration in the amount of three minimum wages for three months of the performance of the powers must be attached to the application for insolvency.

After making the calculation, you can come to the conclusion that the total amount of the reward is UAH 60,300.

2. With regard to the court fee, first of all, it should be noted that this type of costs is charged only to the creditor for submitting an application to open proceedings in the case.

According to Article 4 of the Law "On Court Fees", if the creditor submits an application to the commercial court, he must pay a court fee in the amount of 10 subsistence minimums for able-bodied persons.

In Ukraine, as of today, the living wage is set at UAH 2,684.

Accordingly, after making the calculation, we will receive the amount of UAH 26,840.

As for the debtor, the requirement to pay the court fee is not established by law.

Summing up, it can be noted that mandatory expenses in the bankruptcy procedure for the debtor make up the main remuneration of the arbitration administrator, as of today, the cost is set at the level of UAH 60,300. In addition to this amount, the creditor must additionally pay a court fee in the amount of UAH 26,840.

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