Senior lawyer
Lawyer in the practice of bankruptcy of individuals and individual entrepreneurs. Specializes in write-off of bank and MFI loans through the bankruptcy procedure.
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:
- Excessive financial obligations.
- Inefficient management of own assets.
- Credit and financial or monetary policy of the state.
- 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:
- Loans, bank credits.
- Fines, arrears from communal services.
- Tax debt.
- Loans in MFIs (non-bank macro-financial organizations).
- 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:
- Impossibility of opening a new bankruptcy proceeding (until the debts in the previous case are settled).
- 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.).

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?
2 question
Do you need to file bankruptcy for an individual?
3 question
The amount of the debt exceeds UAH 180,000?
4 question
Are you in Kyiv or Kyiv region?
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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Read moreBankruptcy of an individual
Read moreObtaining a certificate of absence of bankruptcy
Read moreLegal support of the bankruptcy procedure
Read moreProtection of creditors’ rights in bankruptcy
Read moreDebt restructuring under a credit agreement
Read moreConsultation on bankruptcy of an individual
Read morecall back
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