New challenges in the bankruptcy procedure – part I

13/ 04/ 2023

Author: Oleksandr Fedorko, attorney at Dynasty Law & Investment Dynasty Law & Investment draws attention to the fact that on March 20, 2023, the Verkhovna Rada adopted the Law On Amendments to the Code of Ukraine on Bankruptcy Procedures (registration number 4409), which makes a number of changes to the bankruptcy procedure in Ukraine with the aim of simplifying and automating it. The main changes include: ✅ the possibility of considering applications in the case of bankruptcy in simplified legal proceedings without summoning the parties. ✅ if the creditors do not make claims within the prescribed period (30 days from the moment of the opening of the proceedings) - closing of the proceedings in the case of insolvency of the natural person-debtor with the simultaneous recognition of the creditors claims that were not declared as repaid. ✅ resumption of bankruptcy proceedings in case of discovery of the bankrupts property sufficient to cover the expenses related to the proceedings. ✅ creation of an automated system Bankruptcy and Insolvency, which will combine various databases containing information on debtors, arbitration administrators and bankruptcy creditors participating in bankruptcy proceedings. This system also includes the Electronic office of the arbitration administrator ✅ improvement of judicial selection of arbitration managers by means of automated selection using the Unified Judicial Information and Telecommunication System (EUTS) from among the persons entered in the Unified Register of Arbitration Managers of Ukraine in the event that the application of the creditor/debtor is a natural person to open bankruptcy proceedings or insolvency will not have a proposal for the nomination of an arbitration administrator. ✅ elimination of the mechanism of abuse of the right to appeal a court decision in a bankruptcy (insolvency) case and regulation of the procedure and terms for forwarding the case to higher courts in the event of an appeal. ✅ clarification of the list of decisions that are subject to cassation appeal, etc. Undoubtedly, these changes are positive, because they are aimed at improving the bankruptcy procedure in Ukraine, reducing the number of disputes and abuses in this area, as well as ensuring more effective settlement of issues related to the bankrupts property.

Author: Oleksandr Fedorko, attorney at Dynasty Law & Investment

Dynasty Law & Investment draws attention to the fact that on March 20, 2023, the Verkhovna Rada adopted the Law “On Amendments to the Code of Ukraine on Bankruptcy Procedures” (registration number 4409), which makes a number of changes to the bankruptcy procedure in Ukraine with the aim of simplifying and automating it.

The main changes include:

✅ the possibility of considering applications in the case of bankruptcy in simplified legal proceedings without summoning the parties.

✅ if the creditors do not make claims within the prescribed period (30 days from the moment of the opening of the proceedings) – closing of the proceedings in the case of insolvency of the natural person-debtor with the simultaneous recognition of the creditors’ claims that were not declared as repaid.

✅ resumption of bankruptcy proceedings in case of discovery of the bankrupt’s property sufficient to cover the expenses related to the proceedings.

✅ creation of an automated system “Bankruptcy and Insolvency”, which will combine various databases containing information on debtors, arbitration administrators and bankruptcy creditors participating in bankruptcy proceedings. This system also includes the “Electronic office of the arbitration administrator”

✅ improvement of judicial selection of arbitration managers by means of automated selection using the Unified Judicial Information and Telecommunication System (EUTS) from among the persons entered in the Unified Register of Arbitration Managers of Ukraine in the event that the application of the creditor/debtor is a natural person to open bankruptcy proceedings or insolvency will not have a proposal for the nomination of an arbitration administrator.

✅ elimination of the mechanism of abuse of the right to appeal a court decision in a bankruptcy (insolvency) case and regulation of the procedure and terms for forwarding the case to higher courts in the event of an appeal.

✅ clarification of the list of decisions that are subject to cassation appeal, etc.

Undoubtedly, these changes are positive, because they are aimed at improving the bankruptcy procedure in Ukraine, reducing the number of disputes and abuses in this area, as well as ensuring more effective settlement of issues related to the bankrupt’s property.