Bankruptcy of individuals in Lviv, Region and all Ukraine

Bankruptcy of a natural person is the recognition of a person insolvent and, accordingly, the write-off of debts that he can not repay.

Olson Law Firm will provide legal assistance and support in matters related to the bankruptcy of natural persons. Our qualified specialists have thoroughly studied all the innovations and keep their hands on the pulse so as not to miss a single nuance and be ready to always come to the rescue.

Today in Ukraine, the bankruptcy procedure is available to individuals, it is almost identical to the bankruptcy procedure of individual entrepreneurs, except for some nuances. This became possible with the start of the Bankruptcy Code in 2019.

Despite the fact that the procedure for declaring a person insolvent is available to Ukrainians, it is still quite difficult for an average citizen or entrepreneur to declare himself bankrupt. Because in order to understand the relevant Code, which is quite new, you need to have a considerable baggage of knowledge and experience. Therefore, the best option would be to turn to professional lawyers.

Our lawyers will provide comprehensive advice, legal support of the bankruptcy process of an individual in the courts of Ukraine and will undertake the preparation of the necessary documents for the procedure.

Before proceeding with the direct bankruptcy procedure, it is necessary to determine who can claim to be insolvent. An individual may be declared insolvent if:

• has overdue obligations to the creditor, which amount to at least 30 minimum wages;
• stopped repaying debt on the loan or making other current installments in excess of 50% of monthly installments within 60 days;
• there is a formal resolution on the absence of property that can be recovered by creditors;
• the presence of other circumstances that indicate that the debtor will soon not be able to make payments to repay the debt, etc.

It should be emphasized that only the debtor has the right to file for bankruptcy. Neither the bank nor any other creditor has such a right.

Our specialists will assess the prospects of your bankruptcy, carefully analyzing the current situation and prepare an adequate plan for the bankruptcy procedure of individuals in Lviv.

One of the important steps in the procedure is to file an application with the commercial court. It must be well prepared and provide all the necessary information required by law.

The following documents must be prepared together with the application:

• in cases when a natural person has a representative, it is necessary to provide a power of attorney drawn up for the representative;
• documents certifying that the debtor has or does not have the status of a private individual;
• detailed list of creditors with all details;
• description of the property belonging to the debtor on the basis of ownership;
• copies of documents confirming the ownership of the property;
• description and detailed information about the property that is pledged or is encumbered in another way and about the creditors in whose favor the encumbrance of property was committed;
• balance sheet as of the last date and as of the current date, with transcripts of all lines of the balance sheet;
• documents confirming accounts payable;
• data and details of all available accounts of the debtor;
• if there is a copy of an official personal document that contains records of employment of a citizen;
• data on the employer who hired the debtor;
• information on the property status of the debtor;
• data on the presence or absence of a criminal record that has not been expunged for economic crimes, etc.

In addition, the application must be accompanied by proposals for debt restructuring.

If there are no compelling reasons to return or refuse to accept the application, the court must issue a decision within 5 days from the date of submission of the application by the debtor. The decision is sent to all parties involved in this process (arbitration trustees, the body of the state executive service, the state body on bankruptcy, etc.).

Then begins the restructuring of debts by the creditors' committee, writing off debts in the bankruptcy proceedings of an individual.

Recognizing an individual insolvent can greatly simplify life and give freedom in some sense of the word. However, when filing an application, it should be borne in mind that in addition to certain benefits such as the cessation of interest, fines and other financial sanctions, the code also imposes a number of possible restrictions, including a ban on travel abroad or restrictions on the use of certain property. .

The procedure is cumbersome, complicated and incomprehensible, which is why it is best to seek competent legal assistance.

Olson Law Firm guarantees qualified, timely and, most importantly, effective assistance, so you can trust us with the bankruptcy of individuals in Lviv. In turn, we will analyze the situation, help prepare the necessary documentation to start the procedure, develop a plan and will accompany each stage of recognition of insolvency.