Who can initiate bankruptcy, or can a bank do it?

Proceedings in the case of insolvency of a debtor - a natural person or a natural person - an entrepreneur can be opened only at the request of the debtor. None of the creditors, including banks and business representatives, have the right to apply for bankruptcy of an individual (Article 115 of the Code of Ukraine on Bankruptcy Procedures).

The debtor has the right to apply to the commercial court with an application to open insolvency proceedings if:

• the debtor stopped repaying loans or making other scheduled payments in the amount of more than 50% of monthly payments;

• there are other circumstances that confirm the impossibility of fulfilling monetary obligations or making regular current payments.

Monetary claims, including for the payment of taxes, fees (mandatory payments), do not include penalties (fines, penalties) and other financial sanctions.

The creditor has no right to initiate the bankruptcy of an individual under any circumstances, even in the presence of undisputed debt.

After the bankruptcy procedure is initiated, the amount of the individual's debt is fixed, and the accrual of interest and fines is stopped.