Publication date: 16.07.2025
A specialist in bankruptcy of individuals and legal entities, provides support in bankruptcy procedures on the part of debtors or creditors, support in concluding restructuring/settlement agreements with creditors, closure of executive proceedings, debt collection for housing and other services.
Input Data:
In August 2023, our legal company was approached by a client named Antonina with a request to resolve her critical financial problem – a significant problematic debt. The total amount of the debt as of the date of application to the court was 495,445.98 UAH. This sum included various obligations to creditors (likely bank loans, microloans, and others).
The existence of such a debt created for Antonina not only constant psychological pressure from collection calls and the threat of lawsuits but also made normal life and financial planning impossible. In fact, the client was in a state of financial insolvency, which required a radical and legal solution to the debt problem.
Problem:
The team of lawyers conducted a deep and comprehensive analysis of the client's financial situation. All contractual obligations were carefully studied, accrual amounts, repayment terms, and possible grounds for challenging certain claims were checked. The debtor's property status, sources of income, and the presence of any encumbrances were also assessed. Based on the results of this analysis, having identified all financial nuances and legal loopholes in the creditors' claims, a strategic decision was made to initiate the individual bankruptcy procedure in accordance with the norms of the Code of Ukraine on Bankruptcy Procedures. This procedure is the most effective strategy for protecting the debtor's rights, as it allows for systematically regulating relations with all creditors, establishing the real financial state, and, most importantly, ensuring the possible write-off of debts and restoration of financial solvency.
Desired Outcome:
Complete financial release of the client Antonina by writing off all problematic creditor claims, restoring her credit history, and enabling her to start a new life free from the burden of past debts.
Solution:
Course of the process:
- Preparation and submission of the application to the court.
Our lawyers took full responsibility for preparing all necessary documents to initiate the bankruptcy procedure. This included not only drafting the insolvency application but also detailed compilation of financial reports, a complete list of creditors and debtors, and information about property. Competent document preparation allowed avoiding numerous errors and delays that often arise at this stage. Although by court ruling dated 28.11.2023, the application was temporarily left without motion (which is a common practice for checking document completeness), thanks to the quick response and professionalism of the team, all identified deficiencies were immediately rectified, and by 14.12.2023, the case was accepted for consideration. - Opening of proceedings.
Thanks to the persistence and consistency of our lawyers' actions, by court ruling dated 12.03.2024, proceedings in the insolvency case were officially opened. This step is crucial, as from the moment proceedings are opened, a moratorium on satisfying creditors' claims is automatically imposed. This means that all enforcement proceedings against Antonina were stopped, the accrual of fines and penalties ceased, and creditors lost the right to independently collect debt, being able to assert their claims only through the court within the bankruptcy procedure. The court also appointed arbitration manager Artem Oleksandrovych Baginsky as the manager of debt restructuring, who plays a central role in the process. - Assertion of creditor claims and their challenging.
After the opening of proceedings, creditors were notified of the commencement of the bankruptcy procedure. JSC CB "PrivatBank," among others, asserted monetary claims against Antonina for a significant amount. Arbitration manager Baginsky A.O., in close cooperation with our lawyers, carefully reviewed all creditor claims, conducting their detailed legal and financial analysis. In his report to the court, the arbitration manager reasonably challenged the full amount claimed by PrivatBank, as it was established that the accruals did not comply with current legislation, and some amounts could be unlawful or unsubstantiated. - Closing of proceedings.
Based on the convincing report of the arbitration manager, who proved the unsubstantiated nature of the asserted claims, the court ruled to dismiss PrivatBank's claims. As a final step in February 2025, the court made a key decision to close the proceedings in the insolvency case. This occurred in accordance with paragraph 8 of Article 90 of the Code of Ukraine on Bankruptcy Procedures, as none of the creditors could properly submit and confirm their claims within the established deadlines. The absence of confirmed creditor claims is a direct ground for closing the case with the simultaneous write-off of all debtor's debts.
Result: The flawless, coordinated, and professional work of our team of lawyers in cooperation with the arbitration manager allowed client Antonina to be completely freed from all debt obligations. Her credit history was officially updated in accordance with the court decision, her financial situation significantly improved, and she gained the opportunity to start a new life free from the burden of past debts (case № 907/968/23).
This case is a vivid confirmation of the high professionalism and effectiveness of applying the individual bankruptcy procedure. It demonstrates that by entrusting one's affairs to experienced lawyers and an arbitration manager, the best result can be achieved – a complete write-off of debts and financial liberation. Antonina's victory shows that even in seemingly hopeless financial situations, there are legal mechanisms for resolving problematic debt that provide a second chance for a stable future.
