PERSONAL INSOLVENCY AND DEBT RELIEF
Personal Bankruptcy Lawyer in Kyiv Kharkiv and Odesa
Overwhelmed by bank loans, online microloans or other debts in Ukraine? We assess eligibility for personal insolvency, prepare a commercial court application and assist with debt restructuring or court-supervised repayment proceedings.
MAGISTERS reviews your creditors, income, assets and procedural costs before recommending bankruptcy. We do not promise an automatic write-off or suggest hiding property from creditors.
KYIV · KHARKIV · ODESA · REMOTE CONSULTATIONS
What we review first
01 Whether statutory insolvency grounds can be established
02 Risks to your home, vehicle and jointly owned property
03 Likely debt treatment, procedural costs and alternatives
WHEN TO SEEK ADVICE
Legal assistance for personal bankruptcy and unmanageable debts
Personal insolvency is a court-supervised process for individuals unable to meet financial obligations, not a shortcut for cancelling any loan. Multiple creditors, long-term defaults, enforcement proceedings and depleted household income may justify examining the procedure.
A bankruptcy lawyer must assess the size and origin of liabilities, family finances, property, previous transactions and the feasibility of a restructuring plan. In some cases a targeted defence to an individual loan claim or a negotiated settlement is less costly.
BANK LOANS
Multiple outstanding loans
Regular payments have become unaffordable.
MICROLOANS
Microfinance debt
Several online loans, disputed balances or assigned debts.
ENFORCEMENT
Frozen accounts and assets
Evaluate enforcement, secured claims and property risks.
STATUTORY ELIGIBILITY
Who can apply for personal insolvency in Ukraine
Under Article 115 of the Ukrainian Bankruptcy Procedures Code, only the debtor can initiate personal insolvency proceedings for an individual or sole proprietor. A creditor cannot commence this particular personal insolvency case on the debtor’s behalf.
The former fixed minimum debt threshold of 30 minimum monthly wages is no longer a standalone requirement. Nevertheless, court proceedings require evidence of statutory insolvency grounds or the threat of insolvency; debt alone does not establish eligibility.
MISSED PAYMENTS
Significant payment default
More than 50% of monthly payments under each obligation remain unpaid for two months.
UNSUCCESSFUL ENFORCEMENT
Insufficient attachable assets
Enforcement efforts have not located property available for debt collection.
THREAT OF INSOLVENCY
Documented inability to pay
Evidence shows the debtor is likely to be unable to perform financial obligations.
Not every ground has to be proved simultaneously. The court examines the relied-upon ground, supporting evidence and the debtor’s good faith.
FINANCIAL DUE DILIGENCE
Review of loans assets income and previous transactions
We map every creditor and financial claim, bank statements, payment history, court case and enforcement measure. The review includes mortgages, guarantees, jointly owned property, overseas income and relevant past transactions.
Incomplete disclosures or unexplained asset transfers create serious litigation risks. The debtor must make accurate disclosures, including statutory information concerning family members. These issues should be addressed before filing.
LIABILITIES
Creditor and debt schedule
Contracts, balances, payment history and enforcement records.
ASSETS
Real estate and vehicles
Property, bank accounts, security interests and joint ownership.
DISCLOSURE
Prior asset transfers
Sales, gifts, related-party dealings and declaration accuracy.
COURT FILING
Documents for a personal insolvency application
Article 116 of the Bankruptcy Procedures Code requires a substantive filing package, not merely a short court petition. It includes creditor and debt information, evidence, property disclosures and a proposed debt restructuring plan.
Property declarations are required for each of the three calendar years preceding the filing year and for the current year as of the statutory reference date. Specified information about family members must also be disclosed.
01 / DEBTS
Creditor documentation
Loan agreements, demands, bank records and court orders.
02 / FINANCES
Declarations and supporting evidence
Income, accounts, assets, expenditure and required family information.
03 / PLAN
Proposed restructuring
A realistic proposal based on the debtor’s repayment capacity.
COURT PROCESS
How personal bankruptcy proceedings work
The commercial court determines whether the legal requirements for opening an insolvency case have been met. Creditors then submit claims under special procedural rules. Where legally applicable, a moratorium affects certain collection actions, while the restructuring manager reviews financial information.
The court may approve an appropriate restructuring plan. If the restructuring route fails under the applicable conditions, the case can proceed to recognition of bankruptcy and debt repayment from eligible property. A final discharge of qualifying debts requires the relevant court decision.
STEP 01
Assessment and filing
Evidence, declarations and restructuring proposal.
STEP 02
Court and creditors
Claims review and work with the restructuring manager.
STEP 03
Restructuring or repayment
Supervision of the applicable court procedure.
DEBT RESTRUCTURING
A workable repayment plan for bank and consumer debt
A restructuring plan may adjust payment terms, defer or schedule repayments and introduce other measures permitted by law. It must be economically realistic and account for necessary living expenses.
The general plan duration is limited to five years; a special period of up to ten years applies to certain housing acquisition loans, subject to statutory provisions. We test proposed payments against the actual household budget before filing.
Bankruptcy is distinct from negotiating a voluntary loan restructuring directly with a lender. The latter may be preferable where workable.
PROTECTING PROPERTY
What happens to your home car and family assets
Treatment of assets depends on the procedural route, secured lending, ownership and statutory exemptions. Filing an insolvency application does not guarantee that a home or vehicle will be retained.
The Code excludes certain qualifying sole residential property from the repayment estate, subject to specific conditions regarding area, security and legal status. Mortgaged property and jointly owned marital assets require individual review.
HOME
Sole residence
Review eligibility for protection and any mortgage.
VEHICLE
Car and other property
Assess whether assets are exposed to repayment proceedings.
FAMILY
Jointly held assets
Examine ownership, spousal interests and previous transfers.
NON-DISCHARGEABLE CLAIMS
Which liabilities cannot be discharged
Personal bankruptcy does not cancel all financial obligations when the application is filed. Certain unpaid debts may be discharged after the relevant procedure and court decision, while others survive.
Article 134 excludes, in particular, child support, specified personal-injury or death compensation, harm caused by a criminal offence and other claims inseparably linked to the person of the debtor. Article 125 also sets separate restrictions on restructuring, including specified social insurance payments.
Debt restructuring, repayment proceedings and discharge have different legal effects. Each liability category must be assessed separately.
COSTS
Personal bankruptcy costs and legal fees in Ukraine
Costs include legal services, remuneration of the insolvency practitioner and other necessary expenses. The Code imposes rules for advance payment of the restructuring manager’s remuneration; applicable amounts and procedure should be verified at the time of filing.
The number of creditors, assets and disputed transactions can significantly affect the workload. We assess whether the expected benefit is justified by the procedure’s cost and property risks before recommending it.
DOCUMENTS
Evidence and filing
Obtaining account records, supporting documents and valuations.
PRACTITIONER
Insolvency manager
A separate material component of the overall budget.
LEGAL SUPPORT
Lawyer’s services
Preparation, representation and procedural assistance.
SUPREME COURT PRACTICE
Why the court may refuse to open an insolvency case
In its judgment of 16 June 2026 in case No. 917/2334/25, the Supreme Court stressed that substantial unpaid debts alone do not establish a right to insolvency proceedings. The court also considers the factual grounds and the debtor’s good faith.
Inaccurate declarations, asset concealment, questionable transactions and inconsistent financial disclosures can undermine the application. A careful pre-filing review must identify these risks rather than promise a guaranteed discharge.
LEGAL CONSEQUENCES
Restrictions after personal bankruptcy in Ukraine
Article 135 generally restricts a debtor from initiating another personal insolvency case within five years after being declared bankrupt, subject to a statutory exception where debts have been fully repaid.
For five years, an individual declared bankrupt must give written notice of insolvency before certain loan, credit, suretyship and pledge agreements. For three years, the individual is not treated as having an impeccable business reputation.
SOLE PROPRIETORS
Insolvency of a Ukrainian sole proprietor
Ukraine’s Bankruptcy Procedures Code also covers sole proprietors (FOP). Business-related liabilities, taxes, mandatory social payments, collateral and the person’s property must be reviewed carefully.
Closing a sole proprietor registration does not by itself discharge pre-existing obligations. We examine whether a formal insolvency process is appropriate for the individual’s actual liabilities.
LOCAL AND REMOTE ASSISTANCE
Personal bankruptcy counsel in Kyiv Kharkiv and Odesa
MAGISTERS assists clients in Kyiv, Kharkiv and Odesa. Initial review is available remotely, while court jurisdiction and the mode of legal representation depend on the individual circumstances and procedural rules.
We prepare applications, declarations and restructuring materials and represent clients in commercial court proceedings.
GET STARTED
Documents for an initial assessment
Send a brief outline of your creditors, approximate debt amounts, income sources and major assets. Existing loan agreements, court papers and enforcement records are useful where available.
We can then assess whether insolvency grounds appear supportable, identify risks and compare the court process with less costly debt-resolution options.
FREQUENTLY ASKED QUESTIONS
Personal insolvency and bankruptcy in Ukraine
Practical questions about eligibility, debts, property, costs and legal consequences.
Can I use bankruptcy for bank and microloan debts?
Potentially, yes, where statutory insolvency grounds are proved. The procedure does not guarantee discharge of every debt.
Is there a minimum amount of debt?
The former fixed 30-minimum-wage threshold was removed. Actual statutory grounds and evidence are still required.
Can my bank petition for my personal bankruptcy?
Only the debtor may initiate an individual or sole proprietor insolvency case under this part of the Code.
Must I have debts to multiple creditors?
The decisive issue is whether statutory insolvency grounds are evidenced, rather than a fixed creditor count.
Will my debts disappear when I file?
No. Filing is not the same as a court discharge after the applicable procedure.
Can child support be discharged?
No. Child support is among the claims that survive the process.
Will I lose my only home?
Not necessarily. Certain sole residences may qualify for statutory protection, subject to strict conditions.
What if my apartment is mortgaged?
Secured claims require a separate review of the mortgage, asset and possible repayment plan.
Can I keep my car?
Not automatically. The answer depends on the property and procedure.
What does personal bankruptcy cost?
Expect legal fees, insolvency practitioner remuneration and case-specific expenses.
Do I need an insolvency practitioner?
The Code provides for practitioner involvement and remuneration under applicable rules.
Can the lawyer work remotely?
Preparation and some procedural steps may be handled electronically where permitted.
How long will the process take?
It depends on creditor claims, property and litigation. A long restructuring payment plan is different from the time needed for initial court filings.
Can I file for bankruptcy again?
A general five-year restriction applies after being declared bankrupt, subject to a statutory exception.
Are there alternatives to filing?
Yes. Negotiated settlements, direct restructuring or challenging a disputed credit claim may be more appropriate.
REQUEST A LEGAL ASSESSMENT
Debt has become unmanageable
Send an outline of liabilities, income and property. We will assess whether a personal insolvency filing is justified and explain likely costs, risks and alternatives.
RELATED LEGAL SERVICES
Loan disputes and alternatives to insolvency
Where the principal problem concerns excessive interest, an unproven balance or a claim brought by a lender, assistance with credit and loan disputes may be more appropriate than comprehensive insolvency proceedings.
Legal services by MAGISTERS. Attorney profile: Hennadii Lahuta.