Bankruptcy of an individual entrepreneur in Ukraine

The article reveals the essence of the institution of bankruptcy of an individual entrepreneur in Ukraine as a legal procedure for settling relations between an insolvent debtor and their creditors. The current legislation regulating the bankruptcy of individual entrepreneurs, in particular the Civil Code of Ukraine and the Bankruptcy Code of Ukraine, is analyzed, defining the key conditions and grounds for initiating bankruptcy proceedings. The article examines in detail the procedural aspects of individual entrepreneur bankruptcy, including the jurisdiction of cases, the procedure for filing a bankruptcy petition, the criteria for its initiation, as well as the consequences of opening proceedings, such as entering information into the Unified State Register and the procedure for satisfying creditors’ claims. Special attention is paid to the order of priority for satisfying creditors’ claims, which differs from the bankruptcy procedure for legal entities, and the consequences of completing the bankruptcy procedure, including the debtor’s discharge from debts and the legally established restrictions for individuals declared bankrupt. Furthermore, the article analyzes current issues of judicial practice, particularly regarding the determination of the jurisdiction of disputes related to individual entrepreneur bankruptcy, and the possibility of restricting the debtor’s travel abroad during insolvency proceedings. Examples of court decisions of the Supreme Court and the appellate commercial court on these issues are provided. The article also considered the peculiarities of the individual entrepreneur bankruptcy procedure during the period of martial law in Ukraine, examining the temporary provisions of the Bankruptcy Code of Ukraine governing the holding of creditors’ meetings, the liability of the insolvency receiver, the extension of procedural deadlines, the accrual of interest, the advance payment of the insolvency receiver’s remuneration, and other important aspects.