The cost of filing bankruptcy in Ukraine – the price of a turnkey procedure

In accordance with current Ukrainian legislation, bankruptcy can be filed for both a legal entity and an individual. This is one of the main activities of the arbitration manager and lawyers of "PRIKHODKO & PARTNERS".

Peculiarities of registration of bankruptcy of legal entities and individuals in Ukraine

Bankruptcy of a legal entity (enterprise) is a tool that is widely used to overcome financial difficulties of a company. Bankruptcy filing is used by representatives of the business sphere all over the world.

In order to satisfy the interests of creditors, a complex mechanism is used. It consists of appropriate court procedures for liquidation of the enterprise, disposal of property, restoration of solvency (we are talking about rehabilitation) of the company.

Bankruptcy of individuals is a fundamentally new procedure. Thanks to this procedure, a person can carry out the most profitable restructuring of debts or even get rid of them completely. Filing for bankruptcy of an individual begins with the debtor's application.

Among the debts that cannot be written off:

• Compensation for damage caused to the life or health of other people.
• Alimony arrears.
• Arrears for payment of contributions to social insurance funds.

The cost of filing bankruptcy in Ukraine

In accordance with Article 30 of the Code of Ukraine on Bankruptcy Procedures "Remuneration and Reimbursement of Expenses of the Arbitration Trustee", the monetary remuneration of the arbitration trustee is formed by calculating the main and additional monetary rewards.

Among the functions of the arbitration administrator:

1. Debt counseling.
2. Preparation of necessary documents.
3. Organization of representation in court and legal defense.
4. Termination of valid enforcement proceedings against the debtor.
5. Preparation of a debt rehabilitation or restructuring plan.

The arbitration administrator, who performs the powers of liquidator or property administrator, receives a fee, which is determined in the amount of 5 minimum living wages of citizens for each month of his performance of the above-mentioned powers.

The arbitration manager does not receive additional remuneration in cases where the creditor's claims are repaid after the property is sold to him.

The approximate amount of the arbitration manager's remuneration for today according to the law of Ukraine is 40,260 hryvnias. The cost of the services of a lawyer who accompanies a legal entity or an individual during bankruptcy registration in Ukraine is $500-1000 on average.

Advantages of filing bankruptcy

Due to the filing of the bankruptcy procedure, the following occurs:

• Suspension of fines, interest, penalties and other sanctions.
• The possibility of consideration of all creditors' claims within the framework of a court session.
• Recognizing the tax debt as hopeless, that is, such that it is subject to write-off (write-off of the debt takes place in the last 3 years).

Thus, thanks to the filing of bankruptcy, the debtor can be partially or completely freed from debt.

Sign up for consultations with the lawyers of "PRIKHODKO & PARTNERS". We specialize in providing "turnkey" bankruptcy filing services - leave a request for cost calculation and bankruptcy consultation.