Citizens are offered to declare bankruptcy out of court


The amendments are due to the fact that most bankruptcy court cases are labor-intensive, ineffective, and expensive.

Lawyer and partner of Tenzor Consulting Group Anton Makeychuk believes that the bill aims to reduce the burden on the bailiff service and to empower citizens to get rid of all kinds of collector calls that batch buy up debt from banks. “Given the enormous increase in the number of credit cards issued, small consumer loans and the not the best economic situation in the country in recent years, which results in the inability of citizens to meet their monetary obligations, the feasibility of the bill is obvious,” he said.

According to the expert, extrajudicial bankruptcy, by analogy with simplified production, can reduce the bureaucratic element in the bankruptcy procedure. This, in turn, not only reduces the duration of the bankruptcy procedure, but also saves money both for the debtor and for creditors, since the remuneration of arbitration managers is excluded from current expenses. “Despite the fact that, undoubtedly, amendments will be made to the bill both at the stage of adoption and at the stage of implementation, the very direction of the bill seems relevant and necessary,” concluded Anton Makeychuk.


17 September 2019