Publication date: 26.01.2024
Hello! My name is Kyrylo Tomakh, I am a practicing lawyer and co-founder of the law firm DKVA Legal Group. For over 3 years, I have been helping clients protect their rights, find solutions to complex legal situations, and successfully resolve disputes both pre-trial and in court.
Today we will talk about bankruptcy of individuals.
In Ukraine, there are many MFIs that are ready to lend to those who are willing, starting from the age of 18. And students, pensioners, etc. While almost all banks refuse to lend to such persons, MFIs take them on. But behind good advertising there are incredibly high interest rates, a real annual rate of tens of thousands, constant "nightmares" of the phone, relatives, etc.
If you find yourself in a difficult situation and you had to get a loan from such an organization, or even more than one loan, but you are already unable to give back, here is the solution to your problem.
First, contact a bankruptcy attorney. Bankruptcy lawyers will help you do everything as quickly as possible.
In Ukraine, the bankruptcy procedure of individuals is governed by the Code of Ukraine on Bankruptcy Procedures. This Code defines the procedure and conditions for the bankruptcy procedure of natural persons.
The main stages of the bankruptcy procedure of an individual in Ukraine:
Recognition of insolvency:
- An individual or his creditor can file an application with the court to declare the debtor insolvent.
- The court determines the terms and procedure for the consideration of the case.
Formation of the creditors' committee:
The court appoints a creditors' committee, which represents the interests of creditors and promotes the efficient management of the debtor's property.
Court mediator:
With the participation of a court mediator, possible ways of solving financial difficulties are determined without declaring bankruptcy.
Restructuring or bankruptcy:
- If restructuring is not possible, or if no agreement is reached between the parties, the case moves to the bankruptcy stage.
- The court can appoint a liquidator to sell the debtor's property and distribute funds among creditors.
Closing the case:
- After completion of all procedures, the case is closed, and the debtor is released from obligations to creditors within the limits of the procedure.
- This process is aimed at protecting the debtor's rights and effective distribution of funds between creditors.
- An individual can use the bankruptcy procedure to restore his financial stability, and creditors will have the opportunity to recover some of their lost funds.
Personal bankruptcy services will be needed at all stages of this procedure.
Liquidation of property:
- The liquidator appointed by the court is responsible for the sale of the debtor's property.
- The sale may include movable and immovable property, which may be confiscated to satisfy the demands of creditors.
Obligations of the debtor:
- The debtor is released from obligations to creditors who have been recognized by the court as insolvent or bankrupt.
- At the same time, some types of obligations, such as alimony, taxes and other mandatory payments, may remain with the debtor.
Termination of executive proceedings:
The resolution of court cases and executive proceedings against the debtor is suspended for the period of the bankruptcy procedure.
Involvement of the creditors' committee:
The creditors' committee helps to resolve issues related to the distribution of assets and other aspects of the procedure.
Protection of debtor's rights:
- The bankruptcy procedure is aimed not only at meeting the needs of creditors, but also at protecting the debtor's rights and interests.
- The debtor has the right to participate in the process and represent his interests.
Change of debtor status:
- After the successful completion of the bankruptcy procedure, the debtor can start his financial activities again, try to build a new credit history and restore financial stability.
- This is a general overview of the bankruptcy process of an individual in Ukraine.
- It is important to consult a qualified lawyer or financial planner for specific advice and individual assistance in dealing with financial difficulties.
