Draft code of ukraine on the bankruptcy procedure opened

The Verkhovna Rada of Ukraine introduced the Draft Code of Ukraine on Bankruptcy Procedure No. 8060. 26 people's deputies of Ukraine, led by Andriy Ivanchuk and Ruslan Sidorovich, spoke at the forefront. The text of the project is available on the Parliament's website.

The document consists of 155 articles and two books. It is assumed that this Code will come into force three months after its official publication. Since the entry into force of the Code, the Law of Ukraine "On Restoration of the Debtor's Solvency or Recognition as a Bankrupt" is no longer in force.

As indicated in Article 1, the parties to the bankruptcy case are lenders (the representative of the committee of creditors), secured by the lenders, the debtor (bankrupt).

The draft is more detailed than in the current Law on Bankruptcy, prescribed procedures for rehabilitation and restructuring. The restructuring of debtor debts is defined as a judicial procedure in an insolvency proceeding of an individual, which is used to restore the debtor's solvency by changing the method and manner of fulfilling its obligations under the plan for restructuring debtor debts. According to Article 3, the state body on bankruptcy establishes an approximate form of the plan for reorganization, restructuring.

In accordance with Article 6, in the plan of rehabilitation shall be defined:

- the size, order and maturity of claims of creditors involved in the reorganization,

- Measures to implement the plan of rehabilitation and supervision over the implementation of the plan of rehabilitation;

- volume of powers of the manager of sanitation (in case of its appointment).

The reorganization plan may provide for the division of creditors involved in the reorganization, in the categories depending on the type of requirements and the availability (absence) of securing the claims of such creditors, different conditions for meeting the requirements for creditors of various categories of measures for obtaining loans or loans, etc. Terms.

According to the results of the plan of rehabilitation, the debtor or sanitation manager (in case of his appointment) submits to the economic court an application for approval of the report on the implementation of the plan of rehabilitation, to which is attached:

- report on the implementation of the plan of remediation;

- Evidence of sending a copy of the application and report to the creditors involved in the reorganization, investors and the debtor (if the application is submitted by the manager of the rehabilitation).

The Commercial Court must consider the application for approval of the report on the implementation of the plan of rehabilitation within ten days from the date of receipt. The decision on the appointment of a court hearing to consider the application is sent to creditors who take part in the reorganization, investors, the debtor and the manager of the rehabilitation.

The approval of the report on the implementation of the plan of rehabilitation or the refusal to approve the said report shall be made by a ruling of the economic court. The decision of the economic court to approve the report on the implementation of the plan of rehabilitation cancels all measures adopted by the court.

In accordance with Article 7, the following bankruptcy proceedings apply to the debtor:

- disposal of the debtor's property;

- sanation (restoration of solvency) of the debtor;

- liquidation of a bankrupt.

Thus, the world agreement is excluded from the list of court procedures (although it is regulated in Article 149).

Appealing procedures do not stop the proceedings in the bankruptcy case (Article 8).

Part 2 of Article 11 lists separately the documents attached to the creditor's application for the opening of proceedings in the bankruptcy case:

- evidence of payment of a court fee, except in cases when it is not subject to payment by law;

- power of attorney or other document certifying the credentials of the representative if the application is signed by a representative.

The court refuses to open a bankruptcy proceeding if:

- the claims of the creditor indicate the existence of a dispute about the right to be settled in the procedure of the proceeding;

- the claims of the creditor (creditors) are fully satisfied with the debtor before the preparatory meeting of the court;

- there are no unconditional claims at the time of the appeal;

- if there are grounds for leaving the application without consideration;

- the expenses are not covered by the advance by the applicant to the deposit account - the notary's remuneration to the property manager in the minimum amount established by the Code for one hundred and sixty days of the exercise of powers and no other sources for covering these expenses.

The book of a friend regulates matters related to the bankruptcy of an individual. The Commercial Court decides on the dismissal of the debtor, a natural person, from debts when deciding on the completion of the procedure for repayment of debtor debts and the termination of proceedings in a bankruptcy case. Within five years from the recognition of a natural person as a bankrupt, this person must indicate this fact when registering as an individual entrepreneur. During this period, natural persons recognized as bankrupt can not be engaged in independent professional activities, as lawyers, private notaries, arbitration managers, private performers, etc. (Part 15 of Article 152).

The Civil Code of Ukraine is supplemented by Article 48-1 "Legal consequences of the inability of an individual to fulfill his property obligations and repay debts."

Source: Legal Practice.

(Translated with Google Translate)