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Банкротство физического лица

Bankruptcy of individuals is a fundamentally new procedure that will help a person to make a profitable restructuring of debts or even get rid of them. Such a procedure may be initiated only at the request of a natural person of the debtor and is considered by the court at the location of such debtor. But there are exceptions for debts that cannot be written off.

So, even if you are declared Bankrupt, write-off is not subject:

  • child support arrears
  • compensation for damage that has been caused to the health or life of others
  • arrears in the payment of contributions to social insurance funds.

At the beginning of the Bankruptcy procedure for an individual there are two stages:

  1. The first is the restructuring of debts according to a plan approved jointly with the debtor and creditors.
  2. The second stage is the introduction of debt repayment procedures and subsequent recognition of the debtor Bankrupt. It is applied in case of non-approval of the restructuring plan or if it was decided to immediately proceed to the repayment of debts.

Bankruptcy procedure for an individual

To begin Bankruptcy proceedings, a potential Bankrupt must meet one of the following criteria:

  • available debt is equal to or greater than 30 times the minimum wage;
  • late repayment of loans or other financial obligations in the amount of more than 50% of monthly payments for two months;
  • enforcement proceedings were opened against the debtor and within the framework of such proceedings the executor issued a resolution confirming the absence of property from the debtor, which can be recovered;
  • there are circumstances that threaten future insolvency(illness, loss of employment, etc.).

Among other things, the debtor is obliged to file a Declaration, which describes his property status for the three years preceding the appeal to the court. The Declaration must contain information not only about the property and income of the debtor. This Declaration also contains information on the income and expenses of the debtor’s family members and on the property that they own and exceeds 30 times the minimum wage.

→ For the opening of Bankruptcy proceedings, an individual will have to pay an advance fee to the restructuring Manager. The size of such payment is carried out for three months of work of the Manager and is equal to five subsistence minimums for able-bodied persons for each month of work.

At introduction of procedure for repayment of debts, the so-called liquidation weight from property of the debtor at the expense of which sale settlement with creditors will be carried out is approved.To determine the value of the property included in the Bankruptcy estate, the debtor together with the Manager of the sale conduct an inventory and in the future, determine its value. Such property does not include an apartment with an area not exceeding 60 sq. m .( or a living area not exceeding 13.65 sq. m. per family member of the debtor) and a house with an area not exceeding 120 sq. m. The liquidation mass does not include funds in the accounts of the pension Fund or the social insurance Fund.

By a court decision, property that is necessary for the debtor or his family members for their own (urgent) needs and property whose value does not exceed 10 minimum wages may be excluded from the liquidation mass.

Advantages of Bankruptcy

  • stop charging penalties, fines, interest and other sanctions;
  • all claims of creditors are considered only in court, in one case on the recognition of an individual Bankrupt;
  • if there is a tax debt, after the commencement of proceedings, it is recognized as hopeless and is subject to write-off. Tax debt is written off in the last three years;
  • as a result of the recognition of the debtor Bankrupt may be partial or complete exemption from debt.

Disadvantages of Bankruptcy

  • after a natural person is declared Bankrupt, there is an obligation, before entering into contracts, to inform the parties in writing about the fact of their insolvency;
  • lack of impeccable business reputation for the next three years;
  • prohibition of re-recognition of Bankruptcy within the next 5 years
  • travel abroad may be prohibited
  • during the Bankruptcy procedure, the debtor does not have the opportunity to freely dispose of their property;
  • disclosure of information about family members, their financial status.

This is not a cheap procedure. The debtor will immediately have to pay a court fee in the amount of 10 subsistence minima (1921 x 10 = 19210 hryvnia) and three monthly remuneration to the arbitration Manager, who will lead the restructuring of the debt. It is five times the subsistence minimum for the month. Total: 1921 x 5 x 3 = 28815 hryvnia.

In total, the official opening of the case in Bankruptcy will cost the debtor about 38,420 hryvnia.

The list of documents required for the commencement of the Bankruptcy

  • Document on the presence or absence of the debtor’s FLP status;
  • A specific list of creditors, the amount of monetary claims, the basis of the obligations and the term of their implementation;
  • Full description of the debtor’s property and documents confirming the ownership of such property;
  • A complete list of the property being pledged, mortgaged or otherwise encumbered, its value, location and information about the creditors in favor of whom the encumbrance was made, the amount of monetary claims;
  • Documents on the agreements, transactions, made by the debtor for the previous year in respect of property for the sum of not less than 30 sizes of the minimum wage;
  • Information on all accounts of the debtor and the employer together with the employment record;
  • Declaration of the debtor’s property status;
  • Evidence of advance payment for the work of the restructuring Manager and information on the criminal record for economic crimes.

Of course, debts should be paid, but there are different life situations that cannot always be foreseen .

Lawyers and attorneys of Kasyanenko & Partners Law Company will study in detail your situation and offer a solution to your financial problem.

Dmytro Kasyanenko

Lawyer, managing partner of the Kasyanenko & Partners Law Firm. Since 2002, he has gained extensive legal experience in key positions in business structures and the public sector in the field of law and finance.


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