Ivan Balytskyi on personal Bankruptcy

Ivan Balytskyi on personal Bankruptcy

“Yuridicheskaya Praktika” (Legal Practice) No. 47 (1091) of 20 November 2018. Commentary on the article “Duty to know. Restoring private solvency is one of the main novelties to the Code of Bankruptcy Procedure in Ukraine establishing mechanisms for private debts remission”

…. It should be noted that in the course of preparation of the document for the second reading the authors considered some comments and amended the text (we gave more details about the private bankruptcy procedure in the wording prepared for the first reading, in No. 13 in the publication named “To Write off under Order”). According to Ivan Balytskyi, the Counsel at Sokolovskyi and Partners JSC, the draft law was considerably redrafted for the second reading in comparison with its first version. The changes concerned the procedure and grounds for initiating private bankruptcy proceedings. “The adopted Code provides for commencement of proceedings only upon application of a debtor, though it was initially supposed to give such right to creditors” — the expert explains.

Please note: experts agree that the Code is aimed at protecting interests of honest debtors exclusively. Ivan Balytskyi explains the key provisions of the document, noting that the novelties allow for debt restructuring without payment of excess interest and penalties. “The liquidation estate will not include the debtor’s only residential property (an apartment of up to 60 sq.m or a house of up to 120 sq.m) which is not a subject of pledge, and the debt amount will not include penalties and fees. The Code provides for a “transitional period” for restructuring mortgage debts in a foreign currency" — Mr. Balytskyi emphasizes.

.... “There is a risk of disclosure of confidential information about the debtor’s family members due to the requirement of obligatory declaration of income and expenses of all the family for the last three years by the debtor” — Ivan Balytskyi says.

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