Bankruptcy lawyer - legal support and defense in cases

Bankruptcy Lawyer: When Legal Assistance Is Needed

A bankruptcy lawyer works with cases where ordinary negotiations with creditors, restructuring of individual agreements, or enforcement proceedings are no longer sufficient to resolve the debt problem systematically. Bankruptcy does not simply mean having an overdue loan. It is a court procedure regulated by the Bankruptcy Procedures Code of Ukraine and applied to individuals and legal entities under different rules. As of 2026, the Bankruptcy Procedures Code of Ukraine remains in force, and bankruptcy is defined as a debtor’s inability, recognized by the commercial court, to restore solvency and satisfy creditors’ claims otherwise than through the procedures provided by the Code. It is advisable to contact a lawyer if:

• loan and other debts are consistently overdue;
• several enforcement proceedings have been opened;
• bank accounts and assets are under arrest;
• creditors have already filed claims in court;
• the debts significantly exceed the debtor’s realistic ability to service them;
• it is necessary to assess the possibility of restructuring;
• the company has lost solvency;
• a creditor wants to file its claim in a bankruptcy case;
• it is necessary to protect the interests of an owner, manager, or creditor.

Before starting the procedure, it is important to assess not only the amount of debt, but also the assets, previous transactions, composition of creditors, enforcement proceedings, and the possible consequences of bankruptcy for the specific client.

Benefits of Working with Prikhodko & Partners

A bankruptcy case should not be started merely because a large debt exists. First, it is necessary to determine whether a court procedure is actually the best way to resolve the problem. We help:

• analyze all debts, not just one loan;
• review assets and enforcement proceedings;
• assess previous asset transactions;
• determine whether restructuring is possible;
• prepare documents for the commercial court;
• support communication with the insolvency practitioner;
• work with creditors’ claims;
• represent the client in court;
• monitor the procedure until completion.

Consultation with a Bankruptcy Lawyer

A bankruptcy lawyer consultation begins with a financial and legal audit. For the initial review, the following may be required:

• loan agreements;
• court decisions;
• enforcement officer orders;
• certificates of indebtedness;
• information about assets;
• income documents;
• agreements concerning disposal of property;
• information about mortgages and pledges;
• creditor information;
• company financial statements — for a legal entity.

After the review, the lawyer determines:

• whether bankruptcy should be considered;
• what risks the procedure involves;
• which assets may be relevant to the case;
• whether an alternative settlement option exists;
• which documents need to be prepared;
• what result can realistically be expected.

Bankruptcy of an Individual

For an individual, an insolvency procedure applies. Its purpose is not an automatic “write-off of all loans,” but the settlement of debts through a procedure provided by law. An individual insolvency case is considered by a commercial court. The main procedures may include:

• debt restructuring;
• debt repayment after the individual is declared bankrupt.

The Code separately defines a restructuring manager and an asset realization manager — insolvency practitioners who perform the relevant functions in an individual’s case.

Which Debts Can Be Addressed Through Personal Bankruptcy

An individual insolvency case may involve a comprehensive review of the debtor’s financial obligations. These may include:

• bank loans;
• credit cards;
• private loans;
• microloans;
• mortgage debt;
• obligations arising from court decisions;
• other monetary claims of creditors.

However, the outcome depends on the nature of the specific obligation, so before opening the case it is necessary to determine separately which claims may be restructured or discharged within the procedure and which are subject to a special legal regime.

Can Debts Be Written Off Through Bankruptcy?

After completion of the procedure provided by the Code, an individual may be released from part of their debt obligations, but this does not happen automatically after filing an application with the court. The following must be taken into account:

• the debtor’s conduct;
• completeness of disclosed information;
• availability of assets;
• transactions carried out before the case was opened;
• creditors’ claims;
• performance of the restructuring plan, if any;
• the results of the debt repayment procedure.

Therefore, the statement “bankruptcy = complete cancellation of all debts” is legally incorrect.

Assets in Personal Bankruptcy

One of the most important parts of the consultation is the analysis of assets. The following are reviewed:

• an apartment or house;
• land plots;
• vehicles;
• shares in companies;
• bank accounts;
• jointly owned property;
• property subject to pledge or mortgage;
• asset disposal transactions carried out in previous periods.

Concealment of assets or formal transfer of property shortly before the procedure may create additional legal risks.

Bankruptcy of a Legal Entity

A corporate bankruptcy lawyer works with a different procedural model. For a company, the key procedures may include:

• asset management;
• rehabilitation;
• liquidation proceedings.

Rehabilitation is aimed at restoring the company’s solvency and fully or partially satisfying creditors’ claims, while liquidation proceedings apply when solvency has not been restored and the debtor has been declared bankrupt.

Corporate Bankruptcy Does Not Always Mean Liquidation

If the business has economic potential, assets, active contracts, or an opportunity to reach agreements with creditors, the possibility of restoring solvency should be assessed. Together with the client, the lawyer analyzes:

• the debt structure;
• major creditors;
• accounts receivable;
• assets;
• pledged property;
• operating activity;
• prospects for rehabilitation;
• the possibility of attracting an investor.

Only after that is it advisable to determine whether the business should be preserved or prepared for liquidation proceedings.

Assistance to a Creditor in a Bankruptcy Case

A bankruptcy lawyer may represent not only the debtor. For a creditor, legal support may include:

• analysis of the grounds on which the debt arose;
• preparation of creditor claims;
• confirmation of the amount of debt;
• participation in creditors’ meetings;
• analysis of the insolvency practitioner’s actions;
• objections to claims filed by other creditors;
• challenging debtor transactions;
• monitoring the handling of assets;
• representation before the commercial court.

For a creditor, it is important to respond to the opening of the case in a timely manner and not lose procedural opportunities to protect the claim.

Role of the Insolvency Practitioner in Bankruptcy

The insolvency practitioner is an independent participant in the procedure and does not act as the personal lawyer of either the debtor or the creditor. Depending on the case, the insolvency practitioner may act as:

• asset manager;
• rehabilitation manager;
• liquidator;
• restructuring manager;
• asset realization manager.

The Code defines an insolvency practitioner as an individual who has obtained the relevant certificate and is included in the Unified Register of Insolvency Practitioners of Ukraine. That is why the client may need a separate lawyer who specifically protects their legal position in the case.

Review of Transactions Before Bankruptcy

Special attention should be paid to transactions involving assets that were carried out before the bankruptcy case was opened. The following are analyzed:

• sale of real estate;
• transfer of vehicles;
• gifting of assets;
• sale of property to related parties;
• repayment of debt to individual creditors;
• transfer of property as security;
• disposal of corporate rights;
• other economically unusual transactions.

The current Code pays particular attention to related parties and debtor transactions, including transactions that may be assessed in terms of economic justification and good faith. Therefore, before filing an application, the lawyer should understand not only the current state of the assets but also their previous history.

Bankruptcy and Enforcement Proceedings

Before seeking bankruptcy advice, a client often already has:

• court decisions;
• enforcement documents;
• frozen bank accounts;
• asset arrests;
• enforcement against property;
• proceedings handled by a state or private enforcement officer.

The lawyer analyzes each proceeding separately and determines how the opening of a bankruptcy or insolvency case may affect further enforcement.

Which Documents Does a Bankruptcy Lawyer Need?

The list depends on the debtor and the structure of the debts. For an individual, the following may be required:

• loan agreements;
• creditor statements;
• court decisions;
• enforcement proceeding materials;
• real estate documents;
• vehicle information;
• income documents;
• bank documents;
• documents relating to family members where relevant to the procedure.

For a company:

• financial statements;
• balance sheet;
• list of creditors;
• accounts receivable;
• contracts;
• information about assets;
• pledges and mortgages;
• court cases;
• enforcement proceedings;
• corporate documents.

Stages of a Bankruptcy Lawyer’s Work

1. Initial consultation. We analyze debts, creditors, assets, and court cases.
2. Legal audit. We review documents, enforcement proceedings, and previous transactions.
3. Strategy selection. We determine whether bankruptcy, restructuring, or another scenario is appropriate.
4. Document preparation. We prepare the application and required attachments.
5. Opening of the case. We support consideration of the matter by the commercial court.
6. Work with creditors. We analyze filed claims and develop the client’s position.
7. Procedure support. We communicate with the insolvency practitioner and participate in court hearings.
8. Completion of the case. We analyze the final outcome and legal consequences for the client.

Cost of Bankruptcy Lawyer Services

The cost depends on the complexity of the case and the scope of required legal support. The price is affected by:

• the type of debtor — individual or legal entity;
• the number of creditors;
• the total amount of debt;
• the number of court cases;
• the existence of enforcement proceedings;
• the volume of assets;
• pledges and mortgages;
• the need to analyze previous transactions;
• disputed creditor claims;
• the duration of the court procedure.

Common Situations in Bankruptcy Cases

Conclusion

A bankruptcy lawyer is primarily needed to assess the real consequences of the procedure for the debtor, assets, and creditors before court proceedings begin. Bankruptcy of an individual and bankruptcy of a legal entity follow different logic, so the strategy should be developed only after analyzing the entire structure of debts, assets, enforcement proceedings, and previous financial transactions.

Has your debt burden become too high to meet your financial obligations normally, or have creditors already moved to court enforcement? Submit a request on the Prikhodko & Partners Law Firm website. A lawyer will analyze your debts, assets, and documents and determine whether bankruptcy may be an effective solution in your situation.