What is the amount of debt for the bankruptcy procedure in Ukraine?

With the entry into force of the new Code on Bankruptcy Procedures, it became possible to declare individuals bankrupt in Ukraine. This is the first comprehensive document, the purpose of which is to resolve all issues related to the bankruptcy of such persons.

The main feature is that the bankruptcy case of an individual can be opened only on his own application, which he submits to the commercial court at his place of residence.

That is, now the citizens of Ukraine will be able to officially declare themselves bankrupt with subsequent write-off of their debts - this is a progressive step for our legislation.

Reasons for obtaining a positive decision regarding the bankruptcy of an individual

Until March 2023, in order for an individual to be able to apply to the commercial court with an application to open proceedings in the case of his own bankruptcy, there was a requirement for the minimum amount of his overdue debt to creditors. This amount was supposed to be at least 30 times the minimum wage established for the current year of such a person's appeal to the court.

In simple words, in order for an individual to be declared bankrupt, the total amount of his unpaid debts had to exceed 30 minimum wages. It was a kind of limit below which it was impossible to declare a natural person bankrupt.

Even with the changes, there are still grounds for filing for bankruptcy. These include:

• During the last 2 months, the debtor has not made more than half of all due payments for all available credits, loans, obligations under surety or guarantee contracts, etc.
• The debtor has absolutely no property or assets that can be seized by creditors to pay off the overdue debt. This fact is confirmed by a special act issued by the executive office at the debtor's place of residence.
• In addition, there are objective confirmations that in the near future due to the difficult financial situation, the debtor will not be able to make payments on his debts at all. In other words, the debtor has become completely financially insolvent.

Therefore, if all these conditions are met, the court can declare an individual bankrupt and write off his debts.

An objective assessment of one's own situation

Despite the cancellation of the minimum amount of debt, you should not abuse the right and declare yourself bankrupt due to small amounts or debts that can actually be paid.

It is necessary to adequately assess one's own financial condition and capabilities. If a difficult situation has really arisen and it is impossible to pay off the existing obligations, then for a set of valid reasons, you can apply to the court for bankruptcy.

But abusing the new terms and filing for bankruptcy on minor, recoverable debts is extremely unethical and unacceptable. Therefore, it is necessary to act in good faith and carefully.

What to do when help is needed?

In order for you to feel confident and protected when solving issues related to bankruptcy, contact the company "Prykhodko and Partners".

Our lawyers will help at all stages of resolving this difficult situation - from consultation to representation of interests in court. We will prepare all the necessary documents, providing maximum support. Our goal is to protect your rights and achieve the desired result in your bankruptcy case. Contact the professionals!