Фото: Initiation of bankruptcy proceedings

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Kolesnyk Ilya

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Specialist in bankruptcy of individuals and legal entities. Provides legal support in bankruptcy procedures for individuals, private limited liability companies, legal entities, as well as closing executive proceedings, concluding restructuring and settlement agreements with financial institutions

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Initiation of bankruptcy proceedings

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Bankruptcy is a last resort for solving the financial problems of individuals and legal entities who find themselves in a difficult situation and are unable to settle their debt obligations. The filing of a bankruptcy case initiates a formal legal process aimed at a fair and legal resolution of the debtor's insolvency.

 

Grounds for filing bankruptcy

The Code of Ukraine on Bankruptcy Procedures clearly defines the grounds upon which a debtor's bankruptcy case may be initiated. These grounds testify to the debtor's insolvency, his inability to fulfill monetary obligations to creditors. Such reasons can be:

  • Delay in the fulfillment of monetary obligations.
  • A significant amount of unfulfilled obligations.
  • Other evidence of insolvency.

In addition, the legislation provides for additional grounds for filing a bankruptcy case for individuals and legal entities. In particular:

  • Suspension by the debtor of payments to creditors within 30 days;
  • Insufficiency of the debtor's property to cover obligations (the value of the property is less than the amount of debts);
  • The debtor's own declaration of insolvency.

Entities that can file for bankruptcy

Both a legal entity and an individual who are unable to fulfill their monetary obligations to creditors have the right to apply to the commercial court with an application to initiate a bankruptcy case.

Importantly! The application for initiation of a bankruptcy case must be properly substantiated and supported by relevant evidence of the debtor's insolvency, the existence of debt obligations and grounds provided for by law.

 

The procedure for initiating a bankruptcy case

Initiating a bankruptcy case is the first and important step on the way to solving the debtor's insolvency and involves a series of consecutive actions:

  • Submission of a statement on the initiation of a case.
  • Preparation and attachment of documents.
  • Consideration of the application by the court.
  • Making a decision.
  • Appointment of property manager.
  • Introduction of the property disposal procedure.

 

Documents necessary to initiate a case

In order to successfully initiate bankruptcy proceedings, certain documents must be submitted to the court:

  • Application for initiation of a bankruptcy case, duly completed and signed by the applicant.
  • Evidence of the debtor's indebtedness to the creditor, such as contracts, invoices, acts of completed works, court decisions, etc.
  • Evidence of sending the debtor a demand for payment of the debt within the specified time (claim, letter, etc.).
  • Documents confirming the validity of the stated claims and the existence of grounds for filing a bankruptcy case in accordance with the law.
  • Documents certifying the authority of persons participating in the case (powers of attorney, certificates, statutes, etc.).
  • Other documents required depending on the circumstances of the case.

Appeal to professionals

Considering the complexity of the bankruptcy procedure, its significant consequences for the property rights and interests of the parties, contact the qualified lawyers and attorneys of the company "Prykhodko and Partners" for proper preparation of documents, legal support and protection of your rights at all stages of the proceedings.

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Assistant lawyer

Specialist in bankruptcy of individuals and legal entities. Provides legal support in bankruptcy procedures for individuals, private limited liability companies, legal entities, as well as closing executive proceedings, concluding restructuring and settlement agreements with financial institutions

Contact now
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