The number of bankrupt individuals has nearly doubled over the past four months

This year, 651 cases of personal bankruptcies have been opened in Ukraine. Since the beginning of summer, the number of cases has almost doubled.

There are now more bankruptcy cases open than in the entire previous year, when 575 cases were handled.

The majority of those requesting to be declared insolvent are aged 25 to 45 — they make up 64.1% of bankrupt individuals. Another 28.7% are people over 45 years old.

51% of bankrupt individuals are women, while 48% are men.

The highest number of bankruptcies is in the capital: 95 cases, or 15% of the total. Following is the Kyiv region with 58 cases (9%). Dnipropetrovsk region rounds out the top with 53 cases, which is 8% of the total.

Arbitrator Denys Lykhopyok believes that the current trend is more likely a result of “delayed demand” rather than a rapid increase driven by a single factor.

«It’s important to understand that at the beginning of the full-scale war, people were focused on survival, not dealing with their debts.

At the same time, there was a moratorium for over a year on collecting most debts in enforcement proceedings. After the moratorium was lifted, private and state enforcers reminded debtors of their obligations. This could have been the driving force that led people to seek solutions for debt repayment through the insolvency procedure.

Additionally, Ukraine is now developing positive court practices in the area of personal bankruptcy», 

— commented Denys Lykhopyok, lawyer, arbitrator, member of the Qualification Commission of Arbitrators, and a bankruptcy expert.

Context

The Verkhovna Rada allowed citizens to declare bankruptcy back in October 2018. The full procedure began operating in 2019. Since then, individuals facing financial difficulties can initiate bankruptcy and, after completing the process, be relieved of their debts.