Bankruptcy

The lack of reserves, inefficient organization of activities, unfavorable factors related to the martial law led to a situation where many enterprises cannot pay their debts. Deterioration of solvency over time leads to bankruptcy.

Bankruptcy is the recorded inability of the debtor to restore his solvency and satisfy the demands of creditors, recognized by the court, in a way other than the application of the liquidation procedure. Regulated by Articles 24 and 34 of the Law of Ukraine “On Enterprises in Ukraine”. Bankruptcy as a phenomenon affects the interests of many persons: creditor enterprises, employees, enterprises, sole proprietorships and just natural persons (citizens of Ukraine).

A creditor may be a natural or legal entity that, in accordance with the established procedure, has claims regarding monetary obligations to the debtor. In order for a natural person or business entity to be declared bankrupt, he must not fulfill his financial obligations for at least 2 months. The main criterion for initiating a bankruptcy case is the minimum amount of debt that is sufficient under the law.

Types of bankruptcy:

• Real bankruptcy

We are talking about the complete inability of the enterprise to restore its solvency and financial stability due to a real loss of capital.

• Deliberate bankruptcy

Intentional increase or creation by the owner/manager of the enterprise of its insolvency. In this case, economic losses are caused in personal interests due to incompetent financial management.

• Technical bankruptcy

The bankruptcy was caused by a significant overdue debt on debit investments. It is also possible for the debit debt to exceed the payables.

• Fictitious bankruptcy

Providing a false declaration of insolvency in advance by the enterprise. The goal is to mislead creditors in order to obtain a deferral or discount on the total amount owed on loans.

The main basis for initiating a bankruptcy case is the submission of a written application to the court by the debtor or creditor.

The legal regime of bankruptcy in Ukraine

After bankruptcy proceedings are opened, the debtor enters a special legal regime. All agreements and transactions made by the debtor after the opening of bankruptcy proceedings may be declared invalid. Without a doubt, this is one of the bright indicators of the debtor’s legal regime.

The activity of “PRIKHODKO & PARTNERS” specialists combines many years of practical work experience, deep knowledge and understanding of complex economic processes. Our company’s lawyers advise on projects of various complexity, providing full support for debt restructuring and bankruptcy procedures.

Among the main directions of our activity is the provision of recognition and support:

• Bankruptcy of an individual.
• Debt restructuring under a credit agreement.
• Bankruptcy procedures of a natural person-enterprise.
• Write-off of loan debt.
• Appealing executive proceedings on the seizure of debtor’s accounts/property