On October 21, the Bankruptcy Code will be Enacted

On October 21, the Bankruptcy Code will be Enacted

On April 21, the Bankruptcy Code of Ukraine entered into force, which comes into effect on October 21, 2019.

Structurally, the Code consists of 4 books:

Book 1. The general part.

Book 2. The arbitration manager.

Book 3. The bankruptcy of legal entities.

Book 4. Renewing the solvency of an individual.

Thus, the institution of the bankruptcy of an individual is introduced. Thus, a borrower who has fallen into financial difficulty may initiate his bankruptcy. It is possible to re-declare one’s bankruptcy only after five years have passed unless the previous liabilities are repaid. During this time, the borrower must report in writing about the fact of bankruptcy to the other party before taking on monetary obligations as a borrower, mortgagor or guarantor.

A person declared bankrupt cannot be considered to have an impeccable business reputation for the next three years.

The provisions that define the creation of an electronic trading system and authorization of electronic platforms are enacted three months after the act enters into force.