Kolesnyk Ilya
Kolesnyk Ilya

Attorney

Phone numbers
+38 (073) 007-44-49 +38 (073) 007-44-54

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

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Debt write-off in bankruptcy

Debt write-off in bankruptcy

In the current conditions of the country’s development, and especially in the face of difficulties in the economy, legal entities and individuals may find themselves in difficult financial situations where the fulfillment of their obligations under the concluded contracts becomes impossible. These may be various circumstances, such as hostilities, occupation, unpredictable economic changes in the country, etc. In such cases, the bankruptcy procedure comes to the rescue, according to which the debtor can legally get rid of the creditor debt. In this article, we will consider in detail how in Ukraine to write off debt in case of bankruptcy of an enterprise.

How does the bankruptcy procedure work in Ukraine?

Before proceeding to writing off debts in bankruptcy, it is necessary to consider the general procedure for declaring a debtor bankrupt. To give an answer to this question, you should contact the KUzPB, where it is stipulated that the bankruptcy procedure of a legal entity begins with the submission of an application by the creditor or debtor to the economic court about the opening of the proceedings in the case. After that, the following stages of the proceedings take place in stages: disposal of the debtor’s property, judicial recovery and liquidation of the enterprise. We are interested in the stage of rehabilitation and liquidation, as it is possible to write off the organization’s debts directly on them.

How are company debts written off in bankruptcy proceedings?

Upon the occurrence of judicial rehabilitation in the bankruptcy proceedings, the court appoints a rehabilitation manager who must take measures to restore the debtor’s solvency. These measures are reflected in the rehabilitation plan and may include:

  • deferment, installment or forgiveness of a debt or part thereof;
  • elimination of receivables of the organization;
  • sale of a certain part of the property owned by the debtor, etc.

Thus, in terms of reorganization, the arbitration manager may provide for the cancellation of the debtor’s debt.

If we are already talking about the stage of liquidation of a legal entity, then at this stage of bankruptcy, the liquidator appointed by the court forms the liquidation mass of the enterprise. After it has been formed and an inventory of the property has been carried out, the liquidator sells all the assets of the debtor at an auction. In practice, it often happens that the debtor’s property is not enough to satisfy the claims of creditors of all stages and it is sold at an auction not with a high market value, so it turns out that not all debt can be repaid. And in this case, if all the property was sold by the liquidator, but a certain part of the debt remains, then it is liquidated in accordance with the bankruptcy procedure.

How are debts on loans written off from individuals?

The bankruptcy procedure of an individual can be initiated only at the request of the debtor. Together with the application for opening insolvency proceedings, the debtor is obliged to submit a debt restructuring plan. It usually includes:

  • Sale of a part of the debtor’s property in favor of the creditor;
  • Temporary delay, installment plan, change of terms;
  • Significant reduction in payments;
  • Write-off (forgiveness) of a part of debts;

Thus, when restructuring the debt of an individual in the bankruptcy procedure, his debt can be liquidated.

Later, when measures to restore the solvency of an individual did not work, he is declared bankrupt in court and the stage of paying off the debtor’s debts begins.

After its completion, the economic court closes the proceedings on the debtor’s insolvency and makes a decision on its full release from debts.

If you need to write off your debt in case of bankruptcy, contact the experts in your field – the law office “Prikhodko and Partners”. Our team is always ready to provide you with professional advice and support at every stage of bankruptcy, from preparing documentation to representing the client’s interests in court and creditors. Contact us!

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1 question

Do you have loan debts over UAH 200,000?

Yes
No

2 question

Do you need to write off your bankruptcy debt?

Yes
No

3 question

Are you in Kyiv or Kyiv region?

Yes
No

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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Bankruptcy

Agreement on the assignment of the right of claim An appeal against a court decision on debt collection Anti-collector Application for initiation of bankruptcy proceedings Assignment of the right of claim under the credit agreement Bankruptcy certificate for legal entities Bankruptcy of a legal entity Bankruptcy of a utility company Bankruptcy of an individual Bankruptcy of an individual entrepreneur Bankruptcy of individuals Certificate from the Unified Register of Enterprises in respect of which bankruptcy proceedings have been initiated Challenging the executive inscription of the notary on the loan Checking the availability of loans for an individual Collect the debt from the guarantor Consultation of a lawyer regarding credit debts Consultation on bankruptcy of an individual Corporate Bankruptcy (Company Bankruptcy) Credit debt collection Credit lawyer Credit restructuring in a bank/microfinance organization Debt cancellation Debt collection for housing and communal services Debt collection under a credit agreement Debt collection under the factoring contract Debt collection under the loan agreement Debt restructuring for housing and communal services Debt restructuring under a credit agreement Debt write-off for credit / microloans Debt write-off in bankruptcy Declaration of bankruptcy Development of a contract of assignment of the right of claim Development of a debt receipt Development of a loan agreement between individuals EBRD lending Executive proceedings for communal services Fictitious bankruptcy File for bankruptcy Financial rehabilitation and bankruptcy of enterprises Forced collection of debt Forced collection of debt under a credit agreement Gas debt restructuring How to get a certificate of bankruptcy / no bankruptcy? Individual Bankruptcy Lawyer Judicial debt restructuring outside of bankruptcy proceedings Lawyer for credits and microloans (MFI) Lawyer under Art. 200 of the Criminal Code – Illegal actions with transfer documents, payment cards and other means of access to bank accounts, electronic money Lawyer under Article 302 of the Criminal Code – Creation or maintenance of places of debauchery and solicitation Legal advice on loans Legal analysis of credit agreements Legal assistance with microcredits (MFIs) Legal support of the assignment of the right of claim Legal support of the bankruptcy procedure Liquidation of a company through bankruptcy proceedings Liquidation of a legal entity Liquidation of LLC with debts Liquidation of the company under the bankruptcy procedure Mortgage write-off under the bankruptcy procedure Obtaining a certificate of absence of bankruptcy Opening of bankruptcy proceedings Protection of creditors’ rights during the liquidation of a legal entity Protection of creditors’ rights in bankruptcy Protection of the rights of consumers of banking services Recognizing a natural person as bankrupt Removal of seizure from the account for payment of wages Removal of seizure from the debtor’s accounts Restructuring debt on a mortgage loan in foreign currency Restructuring of electricity debt Restructuring of foreign currency loan Restructuring of foreign currency loan Privatbank Restructuring of foreign currency mortgage Restructuring of heating debt Restructuring of the debtor’s debts Sanitation of the debtor in bankruptcy cases Sanitation of the enterprise Statement of claim for collection of debt for utility services Statement of claim for debt collection Statement of claim for debt collection under a credit agreement Statement on insolvency of a natural person Support of creditor in the bankruptcy procedure Support of creditors in the debt collection procedure Support of creditors in the restructuring procedure Support of the bankruptcy procedure of a legal entity Support of the bankruptcy procedure of an individual The bankruptcy procedure of an individual Voluntary liquidation of a legal entity through the bankruptcy procedure Write off a loan for a mortgage (housing) Write off a mortgage loan Write-off of accounts payable Write-off of Borgs for utility services Write-off of loan debt for the guarantor