Support of the bankruptcy procedure of an individual

If a person has large debts to banks or financial companies and is unable to pay them back, he can apply to the court to declare him bankrupt.

Bankruptcy of an individual is an opportunity for a person who finds himself in a difficult financial situation to write off part or all of his debt to creditors.

In other words, the bankruptcy procedure gives a chance to start a “clean” financial start for those who are unable to settle their debts. In Ukraine, this procedure is regulated by the relevant legislation.

The procedure for filing a bankruptcy petition

In order to start the bankruptcy procedure of an individual in Ukraine, it is necessary to submit a corresponding application to the court.

The application must include the person’s personal data – his full name, first and last name, date and place of birth, residential address.

Also, the application must include information about the financial condition of the person – whether he owns any property, what debts exist, to whom exactly the debt is owed and for what reasons it arose.

This information will help the court to objectively assess the situation and make a decision to declare a person bankrupt, if there are grounds for this according to the law.

Importantly! In the bankruptcy application, information about the debtor’s identity and financial condition must be presented as fully and reliably as possible.

Court decision and appointment of the arbitration administrator

After a person submits a relevant application to the court, the latter examines the case and, if there are grounds, makes a decision to declare the person bankrupt. The next action of the court is the appointment of the arbitration administrator. In the future, the arbitration administrator carries out all necessary procedures during the bankruptcy of an individual on his behalf.

Stages of the bankruptcy procedure of an individual

• First, they are trying to restructure debts. The arbitration administrator develops a restructuring plan – proposals for changing the schedule and conditions for repaying debts to creditors. If creditors agree to this plan, bankruptcy can be avoided.
• If restructuring is not possible, the stage of liquidation begins – the sale of the debtor’s property to repay debts. The arbitration manager puts the property up for auction, distributes the proceeds among the creditors.
• According to the results of the procedure, if it was not possible to fully repay the debts, the court may decide to release the debtor from the obligation to pay part or all of the debts.

The main goal is either restructuring or debt cancellation through the sale of property and distribution of funds.

Support of the bankruptcy procedure

The bankruptcy procedure of an individual in Ukraine is a long and complicated process that requires considerable effort and knowledge from the debtor himself. After all, it is necessary to prepare all the documents correctly, adhere to the established deadlines, represent your interests in court and during the work of the arbitration administrator.

Most people who find themselves in a difficult financial situation find it difficult to understand all the intricacies of this procedure on their own. Therefore, professional lawyers specializing in bankruptcy will come to your aid.

Such lawyers will help to correctly draw up and submit all the necessary documents to the court, provide support during court hearings, and advise at all stages of the bankruptcy procedure. This will significantly increase the chances of successful completion of the process and cancellation of debts.

Legal support of the bankruptcy procedure of an individual has significant advantages:

• The risk of a negative court decision is reduced, because the lawyer professionally prepares all documents and defends the position.
• The process is faster because the lawyer monitors compliance with all deadlines and procedures.
• The costs of going through the procedure are reduced, because there is no need to pay fines or re-issue documents.
• The chances of writing off all or part of the debts increase thanks to high-quality legal support.

If you need qualified legal assistance in matters of bankruptcy and are still hesitating about the choice of a company, be sure to contact “Prykhodko and Partners”. Here you will receive excellent legal assistance that will meet your needs. We will be happy to help!