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Statistics on the work of Arbitration Courts published: the number of citizens-bankrupts has been significantly increased

Statistics on the work of Arbitration Courts published: the number of citizens-bankrupts has been significantly increased

In 2020, more than 30% more applications for recognition were received by the arbitration courts the debtor is bankrupt than a year earlier. At the same time, the number of bankruptcy cases of citizens without individual entrepreneur status has significantly increased.

Anton Makeichuk, a lawyer, partner of the law firm Tenzor Consulting Group, in his commentary for the Advocacy newspaper called the report’s data disappointing, according to which the total number of applications for bankruptcy has reached almost 200 thousand.

Anton highlighted the following: “The growth in the number of bankruptcy filings in the reporting period is due to the strong impact of the COVID-19 pandemic on the financial well-being of business entities. It should be noted that not only “young” enterprises, but also quite stable participants in the economic market, were on the verge of bankruptcy. It is likely that the number of bankruptcy filings will continue to grow this year, as the negative economic impact of the pandemic will continue to exacerbate the financial situation of debtors, which will serve as a direct catalyst for filing bankruptcy petitions at the earliest opportunity. ”

The material of the Advokatskaya gazeta is fully available here.

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