Shakhovets Anastasia
Shakhovets Anastasia

Senior lawyer

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

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

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The bankruptcy procedure of an individual

The bankruptcy procedure of an individual

The bankruptcy procedure of an individual is a fairly new procedure in Ukraine, which, moreover, has already proven its effectiveness.

Bankruptcy of natural persons (not entrepreneurs) has been possible since October 2019 (October 21 – the entry into force of the Code on Bankruptcy Procedures, the fourth book of the Code is devoted to the bankruptcy of natural persons). According to the definition, a debtor is a natural person who has lost the ability to fulfill his monetary obligations to creditors in accordance with the requirements of concluded contracts.

The main possible causes of bankruptcy

Bankruptcy is a fairly common phenomenon in modern Ukraine, especially in the conditions of the current state of war. Among the main reasons for bankruptcy of individuals:

  1. Excessive financial obligations.
  2. Inefficient management of own assets.
  3. Credit and financial or monetary policy of the state.
  4. Economic crisis, etc.

 

The presence of the above reasons most often provokes the onset of insolvency of individuals. That is, natural persons lose the opportunity to settle with creditors on their own.

Insolvency in itself is not bankruptcy, but one of its prerequisites. In order to introduce the bankruptcy procedure, the following components must be present:

  • Fixing the amount of monetary claims.
  • Availability of executive proceedings.
  • The term of non-payment.
  • Controversy of requirements.

Bankruptcy recognition procedure

Violation of bankruptcy proceedings is handled by the commercial court.

The declaration of bankruptcy of an individual involves the write-off of any debts that arose on the basis of the contract:

  1. Loans, bank credits.
  2. Fines, arrears from communal services.
  3. Tax debt.
  4. Loans in MFIs (non-bank macro-financial organizations).
  5. Debts under any civil law agreements and contracts.

After the bankruptcy procedure comes to an end, the individual is freed from debts, that is, from the demands of creditors. However, receiving the status of “bankruptcy” does not exempt an individual from the following debts:

  • Payment of alimony.
  • Compensation for damage caused by mutilation or death of a natural person.
  • Debts directly related to the personality of the debtor.

Important: the above financial obligations cannot be written off. In their presence, an individual cannot expect to write off debts under the bankruptcy procedure. This is possible only after fulfilling all the requirements that are inextricably linked to the personality of a natural person.

After the bankruptcy procedure is initiated, the full amount of the debt is recorded, and interest, fines, and interest are not accrued. The next stage is debt restructuring.

 

For this, a special plan is drawn up, which may include:

  • Sale of part of the debtor’s property.
  • Debt postponement or forgiveness.
  • Changing the method of fulfilling obligations.
  • Guarantee from other persons.
  • A change in the debtor’s position (this may be related, for example, to his employment).

Among the restrictions that apply to a natural person-debtor:

  1. Impossibility of opening a new bankruptcy proceeding (until the debts in the previous case are settled).
  2. Obligation during the conclusion of credit agreements, loan agreements, etc. notify the other party of its insolvency.

The above-mentioned restrictions have their own term – 5 years. In addition, the debtor will not be able to act as a guarantor. The court can also make a decision to restrict a person’s movement (ban on leaving Ukraine, etc.).

Thus, bankruptcy is an effective mechanism for both the debtor and the creditor. A natural person-debtor can use the available time to preserve and accumulate his assets, restore solvency, etc. The creditor, in turn, has the opportunity to have a real influence on the process of fulfilling the debtor’s obligations, rather than being an outside observer, as is often the case in traditional enforcement proceedings.

 

If you have encountered such problems as:

  • The presence of significant debts on credit/loans.
  • Calculation of fines, fines, penalties.
  • The specialists of “PRIKHODKO & PARTNERS” will help you in violation of rights by creditors or collectors.

Our lawyers provide high-quality professional assistance using all the necessary tools in the field of modern Ukrainian legislation. This is confirmed by the reviews of our customers. Sign up for a consultation and calculation of the price of the bankruptcy procedure!

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1 question

Do you have loans and MFI debts and you are unable to pay them?

Yes
No

2 question

Do you need to file bankruptcy for an individual?

Yes
No

3 question

The amount of the debt exceeds UAH 180,000?

Yes
No

4 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