Adopted by the Verkhovna Rada of Ukraine on 18.10.2018 The Code of Bankruptcy Procedures has signed by the President of Ukraine.
It is a full-fledged codified normative act aimed at simplification and unification of procedures for restoration of solvency and recognition of debtors as bankrupt, adopted to replace the ineffective Law of Ukraine Thr Restoration of Debtor's Solvency or Declaring It Bankrupt.
According to the legislator, the Code is aimed at increasing the economic efficiency of procedures for restoration of solvency or bankruptcy of debtors and accordingly at protecting the rights and interests of creditors, who are primarily affected by the actions of unscrupulous debtors.
According to the latest (in the field of bankruptcy) provisions of the Code, the debtor has the right to independently apply to the economic court with an application to open proceedings on insolvency, if the amount of overdue obligations of the debtor to creditors is not less than 30 minimum wages.
In addition, one of the novelties of the Code is the regulation of cases of insolvency of individuals who are not economic entities. The fourth book of the Code on bankruptcy procedures describes such cases in detail and provides an opportunity for individuals to better protection their economic interests in complex life situations.
The Code will enter into force 6 months after of its official publication - 21.10.2019. Above-mentioned Law of Ukraine The Restoration of Debtor's Solvency or Declaring It Bankrupt will be in force until that date.
Deiak Law Firm closely monitors regulations and court practice in the field of insolvency of debtors in order to continuously and effectively improve the practice of Bankruptcy and anti-crisis protection of business.
