Grounds for Recognizing an Individual as Bankrupt
Personal bankruptcy is a procedure that allows for the recognition of an individual's insolvency and releases them from debts. In Ukraine, this is regulated by the Bankruptcy Procedures Code of Ukraine. The bankruptcy procedure applies to both legal entities and individuals and includes certain grounds for its initiation. The main condition for recognizing an individual as bankrupt is the presence of significant debt.
When Can an Individual Be Recognized as Bankrupt?
According to the legislation, an individual can be recognized as bankrupt in the following cases:
- The debt exceeds 30 minimum wages: If the total debt of the individual exceeds this threshold, they have the right to file for bankruptcy.
- More than 50% of obligations are unpaid: If the individual is unable to pay more than half of their debts, this is also a ground for initiating bankruptcy proceedings.
- Other cases of insolvency: The inability to settle debts within the prescribed time frame can also be grounds for filing for bankruptcy.
What Options Exist for Personal Bankruptcy?
Within the bankruptcy procedure for an individual, there are two main options for resolving the situation:
- Debt Restructuring: This is a process where the debtor enters into an agreement with creditors to defer or change the terms of debt repayment.
- Asset Liquidation: If debt restructuring is not possible, the debtor may lose part of their property to settle obligations, except for housing up to 60 m².
After the Bankruptcy Procedure is Completed
After completing the bankruptcy process, an individual may be released from debts, but there are some exceptions:
- Alimony: Remain unpaid, and the debtor cannot be released from these obligations.
- Health Damages: The debtor will not be released from obligations to compensate for health damages.
- Personal Debts: Debts related to personal matters (e.g., personal contracts) also remain in effect.
Q&A Block
Question
What are the main grounds for recognizing an individual as bankrupt?
Answer
The main grounds for recognizing an individual as bankrupt include the presence of debts exceeding 30 minimum wages or the debtor failing to pay more than 50% of their obligations.
Question
What options are available for resolving an individual's bankruptcy situation?
Answer
An individual can choose between debt restructuring or asset liquidation to settle their obligations.
Question
Can all debts be forgiven after bankruptcy?
Answer
After bankruptcy, most debts can be forgiven, except for alimony, health damages, and personal debts.
How Can We Help You?
Legal Consultation: Our lawyers are ready to provide consultation on all bankruptcy matters.
Document Preparation: We will help you prepare the necessary documents to file for bankruptcy and represent your interests.
Court Representation: Our experienced lawyers will represent you in court proceedings.
The bankruptcy procedure for individuals is an effective way to resolve financial problems. However, before starting this process, it is important to consult with an experienced lawyer to receive qualified assistance.
