On 06 February 2026, the Cabinet of Ministers of Ukraine approved a Draft Law No. 15004 developed by the Ministry of Justice of Ukraine introducing simplified bankruptcy procedures for micro and small enterprises.
The document was prepared in implementation of Step 3.7 of the Ukraine Facility programme and aims to establish a more efficient and accessible mechanism for addressing small business insolvency in line with European standards.
The Draft Law provides for the introduction of two simplified bankruptcy procedures through amendments to the Code of Ukraine on Bankruptcy Procedures:
- a simplified rehabilitation procedure – for debtors intending to restore financial viability and continue their business operations;
- a simplified liquidation procedure – for business entities that lack sufficient assets and seek to cease operations with minimal costs and procedural burden.
It is expected that the proposed measures will streamline insolvency proceedings for businesses and reduce administrative burdens, through:
- eliminating the mandatory procedure for disposal of assets;
- making the involvement of an insolvency practitioner optional – at the initiative of either the debtor or a creditor;
- removing the requirement to convene creditors’ meetings and establish a creditors’ committee;
- introducing shortened and clearly defined timeframes with the possibility of a one-time extension;
- implementing standardised document templates to simplify procedural formalities.
The implementation of these amendments is expected to facilitate the prompt recovery of viable enterprises and ensure a predictable exit from the market for entities unable to continue operations.
We will closely monitor further developments in this area, in particular regarding the status of this Draft Law, and report on them in the future Legal News.
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