Senior 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
Bankruptcy
Bankruptcy is the debtor’s inability to settle accounts with creditors in a timely manner and fulfill all financial obligations. The key aspect of the concept of “bankruptcy” is the presence of debts and the inability to pay them (Article One of the Bankruptcy Procedures Code). Under current legislation, the bankruptcy procedure in Ukraine applies to both legal entities and individuals. Depending on whether the debtor acts as a private entrepreneur or a citizen, this procedure will differ. The lawyers of our law firm “Prikhodko & Partners” provide a full range of services related to the bankruptcy of legal entities and individuals.
Bankruptcy of Legal Entities
Ukrainian legislation clearly states that the bankruptcy of a legal entity is the inability of the debtor to restore its solvency other than through the procedure of debt repayment or liquidation. A company receives this status after the relevant decision is issued by the commercial court.
Bankruptcy is a long-term procedure that results in the recognition of a legal entity as insolvent. A logical question arises: what amount of debt must a legal entity have to initiate the bankruptcy procedure? As of today, Ukrainian legislation does not specify a minimum amount of debt.
To open proceedings, the court must be provided with evidence of the existence of debt and the threat of insolvency in the near future.
Stages of the Bankruptcy Procedure for a Legal Entity
- Filing an application, initiating the procedure.
- Opening of proceedings.
- Asset management of the debtor.
- Company rehabilitation (sanation).
- Liquidation procedure.
- Closure of proceedings.
At each of these stages, it is important to rely on the support of qualified lawyers. The professional team of “Prikhodko & Partners” provides a full range of services related to the bankruptcy of legal entities.
Bankruptcy of Individuals
For Ukraine, this procedure is relatively new but extremely important. In conditions of insolvency, an individual has the right to declare bankruptcy. For many people, this is a real relief during wartime. The bankruptcy procedure for individuals helps reduce debt burden and stabilize the debtor’s financial situation.
The basis of this procedure is a lengthy legal process aimed at restructuring or writing off debts of a person who is unable to fulfill financial obligations. It is an effective tool established by Ukrainian law to protect the rights and interests of both the debtor and creditors. Bankruptcy is the last resort for individuals who cannot repay their debts even under restructuring.
The legal basis is the Bankruptcy Procedures Code of Ukraine (adopted in 2019). According to its key provisions, an individual has the legal right to file for bankruptcy. Naturally, there must be significant grounds, such as the inability to repay debts over a long period. This provision opened the way to legally resolving existing financial obligations using effective legal mechanisms.
Stages of the Bankruptcy Procedure for Individuals
- Filing the application. The individual submits an application to the court describing their financial situation and providing a list of assets and debts.
- Opening of proceedings.
- Appointment of an insolvency practitioner. The insolvency practitioner assesses assets and manages the restructuring of debts.
- Sale or restructuring of assets.
- Closure of the case.
The result may be partial or full release from obligations.
Calculate the cost of bankruptcy
Advantages of Professional Bankruptcy Support
The bankruptcy procedure is complex and requires specialized legal knowledge. Bankruptcy lawyers of our law firm “Prikhodko & Partners” guarantee comprehensive legal support, which includes:
- Professional analysis of the situation.
- Development of an effective strategy to achieve the client’s desired result.
- Correct and timely preparation of all necessary documents.
- Court representation.
- Protection from creditor actions.
- Maximally beneficial debt restructuring options / protection of assets.
The team of lawyers at “Prikhodko & Partners” guarantees that the bankruptcy procedure for legal entities and individuals will be carried out safely and as efficiently as possible!
Is it possible to go through the bankruptcy procedure if the debt is less than 180,000 UAH?
Bankruptcy can be filed regardless of the amount of debt — there are no minimum limits set by law. However, if the amount of debt is less than UAH 180,000, it is usually more advisable to agree on debt restructuring, as bankruptcy may be economically unprofitable.
If I am not in Kyiv, can I cooperate with you?
Yes, we work remotely throughout Ukraine and even with clients abroad! We have many clients from Lviv, Odessa, Dnipro, Kharkiv, Cherkasy and other settlements.
Communication is carried out in any way convenient for you.
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