How to file for bankruptcy under martial law?

Today, modern Ukrainian business faces a number of challenges and limitations that create serious obstacles in conducting successful business activities. The global economic crisis, the strengthening of geopolitical conflicts and the introduction of martial law in Ukraine - all these factors directly affect various business sectors and require enterprises to adapt to new realities. All this leads to the fact that not every company is able to survive economic instability, which results in an increase in the bankruptcy rate of legal entities in general. This shows the relevance of this topic. Therefore, in this article, we will consider in detail how to file for bankruptcy in the conditions of martial law in the country.

How is the bankruptcy process regulated in Ukraine?

The fundamental legislative acts regarding bankruptcy issues in Ukraine are the Code of Ukraine on Bankruptcy Procedures.

What starts the bankruptcy process in Ukraine?

When the enterprise is unable to fulfill its debt obligations to the creditor, in this case it has the right to file an application with the court and ask the latter to declare it bankrupt in accordance with the law. In addition, the creditor to whom the debtor is obliged to return monetary obligations also has the right to submit such a statement. This right is provided for in Article 34 of the Labor Code.

What does such a statement consist of?

If the application is submitted by the creditor, it must include the following mandatory elements:

• the name of the commercial court to which the application is submitted;
• full name of the creditor, its place of registration and actual location, RNOKPP of the legal entity;
• argumentation and presentation of the relevant circumstances, which, in his opinion, became the basis for applying to the judicial authorities;
• documentary confirmation of payment of the established court fee, except for cases during which it does not need to be paid;
• if the submitted application is signed by the representative of the creditor, a document confirming his authority as a representative is required;
• documentary confirmation of the advance payment to the arbitration manager of 3 amounts of the minimum wage for 3 months of performance of powers;
• documentary confirmation of sending a copy of the submitted application and all documents attached to it to the debtor.

If the application is submitted by the debtor, the list of mandatory documents is significantly expanded and includes:

• the name of the commercial court to which the application is submitted;
• full name of the debtor, place of registration and actual location, RNOKPP of the legal entity;
• if the submitted application is signed by the representative of the debtor, a document confirming his authority as a representative is required;
• documentary confirmation of a potential threat of default on debt obligations to the creditor;
• the state of the debtor's finances as of the last date of the report reflected in the balance sheet;
• a clear list of creditors whose claims are recognized by the debtor (it is necessary to indicate the amounts recognized and the names of creditors);
• provision of information on the opening of all financial accounts of the debtor's legal entity in banking institutions;
• other documents.

The full list of documents that must be submitted to the debtor along with the application can be found in clause 4 of Art. 34 KUzPB. After submitting the entire necessary package of documents, the commercial court checks the grounds for opening proceedings on the case and makes a decision on granting the submitted application or refusing to open proceedings regarding the bankruptcy of the organization or enterprise.

If you want to file for bankruptcy under the conditions of martial law in Ukraine, then in this case you will need the help of professional lawyers - the Prykhodko and Partners law firm.

Our team is always ready to provide you with professional advice and assistance in filing for bankruptcy proceedings. So don't delay and apply!