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Bankruptcy Application for initiation of bankruptcy proceedings

Shakhovets Anastasia

Senior lawyer

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Shakhovets@prikhodko.com.ua

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Lawyer in the practice of bankruptcy of individuals and individual entrepreneurs. Specializes in write-off of bank and MFI loans through the bankruptcy procedure.

Application for initiation of bankruptcy proceedings

The relevance of the topic of bankruptcy of individuals in Ukraine has increased against the background of economic difficulties that affect the financial condition of many citizens. The unfolding of the economic crisis, rising unemployment, inflation and other economic problems have forced many people to seek opportunities to solve their financial difficulties through bankruptcy proceedings. The bankruptcy procedure of individuals is regulated Code of Ukraine on bankruptcy procedures, in particular, Articles 113-137. The application for opening proceedings in the case of insolvency of a natural person is submitted in accordance with Article 116 of this Code.

In our article, we will take a detailed look at the bankruptcy procedure for individuals, including the key aspects of filing an application and the features governing this process.

The price of legal assistance in a bankruptcy case

How to correctly prepare an application for opening bankruptcy proceedings?

An application for initiation of bankruptcy proceedings can be filed by both the creditor and the debtor. It must be drawn up in writing and submitted to the commercial court at the location of the debtor.

The applicant must take into account that the document must meet the requirements of the Bankruptcy Code of Ukraine and the Economic Procedural Code of Ukraine.

The application must include: 1) the name of the commercial court; data about the debtor (name, location, identification code, contact data and means of communication); 2) data on the creditor (name or surname, location or place of residence, identification code or RNOCPP, contact data and means of communication); 3) a description of the circumstances that became the basis for submitting the application; 4) information on the size of the creditor’s claims against the debtor, including separately the amount of penalty (fine, penalty) that must be paid. It is also necessary to submit a list of documents that must be duly certified, taking into account differences depending on who is the applicant.

In case the application is submitted by the creditor

The following documents are attached to the application:

Receipt or payment order confirming the payment of the court fee.
Receipt or payment order to advance remuneration to the arbitration administrator in the amount of three minimum wages for three months.
Proposal regarding the candidacy of the property manager (if any).
A power of attorney or other document, if the application is signed by a representative.
Description of the value letter and postal confirmation of sending a copy of the application and attached documents to the debtor.

The creditor’s application may be based on the debtor’s total debt for various obligations to this creditor. In addition, creditors can combine their claims and submit a joint application to the court, which is signed by all creditors who have combined their claims.

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Proposal for the selection of an arbitration manager

At the moment, the norms of Clause 2-1 of the Transitional and Final Provisions of the Code of Ukraine on Bankruptcy Procedures, which require the appointment of an arbitration administrator in accordance with special rules before the launch of the Unified Judicial Information and Telecommunication System, continue to apply.

When submitting an application for the initiation of bankruptcy proceedings, the initiating creditor must include in it the statement of the arbitration administrator specified in the application, about participation in the case, which must meet the requirements of the third part of Article 28 of the Code.

In case the application is submitted by the debtor

If the application is submitted by the debtor, several important documents should be attached to it. Among them, there must be a receipt or payment order confirming the payment of the court fee, as well as a receipt or payment order for the advance of remuneration to the arbitration manager in the amount of three minimum wages for three months. It is also necessary to provide evidence of the threat of insolvency, founding documents, a balance sheet as of the last reporting date and a list of creditors indicating the total amount of monetary claims of all creditors, as well as the claims of each creditor separately.

It will also be useful: Signs of bankruptcy

In addition, a list of the property with its book value and location, as well as the total book value of the property, should be included. It is necessary to submit a list of persons who have unfulfilled obligations to the debtor, with information about the value of such obligations, the terms of their fulfillment and the reasons for their occurrence. It is also necessary to provide information on all accounts in depository institutions, banks and other financial and credit institutions, as well as account details on which the rights to securities owned by the debtor are recorded.

Importantly! If a general meeting (conference) of the debtor’s employees was held prior to submitting the application to the commercial court or a decision was made by the primary trade union organization to elect a representative of the employees to participate in the case, the minutes of these meetings or decisions must be provided. It is also important to include the decision of the management body to submit an application to the commercial court to open proceedings in the case.

If the application is signed by the representative of the debtor, a power of attorney or other document confirming his authority must be provided. Additionally, other documents confirming the debtor’s insolvency may be included.

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1 question

Are you interested in filing for bankruptcy proceedings?

Yes

2 question

Are you in Kyiv?

Yes

3 question

Do you need a service urgently?

Yes

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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