How to apply for insolvency of an individual?

Ukraine, like many other countries, has its own legal system that regulates the procedure for submitting an application for insolvency of a natural person. This process has its own characteristics and requirements that must be followed for the successful implementation of the application.

Who can apply?

The reasons for insolvency can vary, such as job loss, reduced income, rising costs, unexpected expenses or failed investments. An application for the insolvency of a natural person can be submitted only by the natural person (the debtor) who cannot fulfill his financial obligations to repay debts on time. An individual has the right to apply to the commercial court with this application in case of certain circumstances that indicate his insolvency or the threat of such insolvency.

What is required for a successful application review?

In order to successfully consider the application in court, it is necessary to fully comply with the established procedures and provide the necessary evidence/confirmation of insolvency. The same confirmations can include the following: court decisions, official agreements, initial financial documents that contain information about business transactions and prove their execution (such as statements from bank accounts, payment orders, receipts, invoices, various letters, minutes) , and any other evidence that confirms the fact that the debtor does not fulfill its financial obligations, or, in the case of a threat of insolvency, indicates the possibility of such a failure.

Legislation and how to file for insolvency

The Code of Ukraine on Bankruptcy Procedures introduced the so-called concept of “voluntary bankruptcy” for individuals. This is a right granted to an individual debtor, and it gives an opportunity to restructure their debts, or even get their partial or full forgiveness (write-off). As a result of this process, the debtor can be released from financial obligations and return to a state where he can fulfill his financial obligations.

This procedure, known as “insolvency of natural persons”, was introduced by the legislator as a tool for natural persons to have the opportunity to get out of a difficult financial situation through legal action. The main goal is to get rid of debts and restore financial stability.

An application for the initiation of insolvency proceedings is submitted by the debtor to the commercial court if there are relevant grounds.

The following data must be specified in the application itself:

• the name of the commercial court to which the application is submitted;
• proper surname, first name, patronymic of an individual;
• place of residence;
• RNOCPP and passport data;
• contacts;
• state the circumstances that became the basis for applying to the court and indicate the list of documents attached to the application.

In order to make your life easier and to be sure that all the necessary actions have been taken and all the necessary documents have been attached, contact the legal experts of the “Prykhodko and Partners” law firm. The team will definitely advise you and help you with all the nuances that will help with your problem.