How to file for bankruptcy of an individual in Ukraine?

Bankruptcy is a procedure that allows a person to be freed from heavy credit debts. Since 2019, the Code of Bankruptcy Procedures has been in effect in Ukraine, which regulates the procedure for writing off problematic debts and helps people find a way out of the credit trap of MFIs and banks.

What are the legal features of the bankruptcy procedure in Ukraine?

• Filing of an application for bankruptcy can only be carried out by the debtor on his own behalf;
• The bankruptcy procedure includes such stages as restoring the debtor's solvency and declaring him bankrupt;
• The case may end with a settlement agreement between the debtor and creditors;
• In the case of recognition of insolvency, the arbitration administrator participates, who negotiates with creditors on the restructuring of debts or manages the procedure for their repayment;
• Claims of creditors that cannot be satisfied due to the insufficiency or absence of the debtor's property are recognized as forgiven;
• During the bankruptcy procedure, the debtor has restrictions on concluding certain types of transactions.

What useful privileges are granted to debtors during martial law?

• The court should simplify the conditions for entering the bankruptcy procedure for persons who lost housing, work, and other property as a result of armed aggression;
• All circumstances caused by the war, which led to the insolvency of a natural person, must be taken into account;
• Property that is the debtor's only source of income may be excluded from the liquidation estate.

So, how to file for bankruptcy for an individual in Ukraine?

• Step 1: Prepare to file for bankruptcy

Before filing for bankruptcy, an individual must familiarize himself with the legal basis, determine his own financial situation and purpose, and then also prepare all the necessary documents. The list can be found in the Bankruptcy Code.

• Step 2: Appeal to the court

After the person is convinced that he meets all the legal grounds for applying under this procedure, he can submit an application to open an insolvency case. The application is submitted to the court at the place of registration. In the application, you should indicate all information about your property status and credit history as of the date of submission, describe the reasons that led to insolvency.

It is important to note that the bankruptcy procedure can have a great impact on the credit history of an individual, so it is worth contacting a qualified lawyer who will help you consider all possible consequences and choose the right strategy. Leave your application for consultation on the bankruptcy procedure of an individual in the form below!