Law on bankruptcy of physical person signed

Source : 112 Ukraine

The document will come into force in six days after its official publication
17:08, 19 April 2019

Open source

The bill of the Code of Ukraine on bankruptcies № 8060 was signed by the President. The data is published on the website of the Verkhovna Rada of Ukraine.

The Code consists of four books, the latter regulates the order of bankruptcy of the physical entities.

The borrower who is in a difficult material situation can initiate its bankruptcy. The creditor can not afford that.

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the following reasons for opening a case on insolvency are provided:

- expired commitments in the amount of over 30 minimum salaries;

- the debtor does not pay at least half of his debts within two months;

- there is a decision in the enforcement proceeding which says that a person does not possess a property which might be collected;

- other circumstances which confirm that the debtor will not be able to perform his commitments in the nearest future.

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In this case, the debtor will receive a plan of restructuring the loan, if the compromise with the bank is not reached, the property of the obligor will be sold to cover the commitments. Almost any property can be put for sale, except "the only housing of debtor" - apartments up to 60 meters square or a house to 120 meters square, as well as money in retirement accounts and in social insurance funds.

One can not recognize himself a bankrupt within five years since such decision was made( the exception is repayment of previous obligations ). During this time, the borrower has to notify in writing the other party about the fact of bankruptcy before taking money in debt, on credit or becoming someone else’s bondsman.

A person can not have a perfect reputation within three years after he was recognized a bankrupt.

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