Debt cancellation in court

Debt write-off in Ukraine is possible in a court-ordered manner within the framework of Ukrainian legislation by means of a bankruptcy procedure. The fact that a person is declared bankrupt is only an indication of his financial condition, which indicates that he has consciously begun the process of freeing himself from the burden of debt.

Bankruptcy and the sequence of actions

The debtor must apply to the court to declare himself bankrupt in order to start a bankruptcy case, together with documents confirming his inability to pay his debts and provide the amount of debts accordingly.

The court appoints the hearing of the case and may take measures to satisfy the demands of the creditors.

After the specified actions, within the value of the debtor’s property, the court may decide to write off all other debt claims that have not been satisfied.

In this way, the debtor is not only released from debts that exceed the value of his property, but also loses such property. In turn, debts are considered written off after the bankruptcy procedure is completed.

Importantly! The debtor’s property, which does not exceed 60 square meters, is not subject to sale. – apartment or 120 sq.m. – a house

Stages of action

1. Consideration of the property and financial condition of the debtor may include:

• Analysis of an individual’s recent income – salary, pension, other payments.
• Analysis of costs and liabilities.
• Determining the availability of property – real estate, transport, deposits, securities, as well as analysis of ownership documents.
• Determining the possibility of selling the property of an individual to pay off debts, with an estimate of its value.
• Conclusion on the causes and signs of insolvency of a natural person-debtor;

2. Collection and preparation of documents for bankruptcy – personal documents of a person, such as a passport and code, are the main ones in such documents. Also, a confirmation of indebtedness is added to the total amount, where the creditors and the amount of the indebtedness are indicated. You should be consulted by a legal specialist about additional necessary documents;
3. Drawing up the application itself for the initiation of a bankruptcy case. A sample of such a statement can be found on the website of the judicial authorities of Ukraine or you can contact lawyers and get help in this matter;
4. Submitting an application to the court together with the necessary documents;
5. Judicial review of the application;
6. Payment of the mandatory advance payment of the arbitration manager;
7. The bankruptcy procedure itself, which includes the arbitration administrator and, if necessary, other parties to the process;
8. Completion of the bankruptcy procedure, which leads to the release of a person from the fulfillment of obligations, as well as the cancellation of debts.

To receive the necessary consultation and legal assistance with up-to-date and detailed information, the law firm “Prykhodko and Partners” is always at your service.

Qualified lawyers will provide you with full legal assistance, help you prepare and collect all the necessary documents to start the procedures, which in turn will lead to the solution of your problem in full compliance with the law.