CLAIMS OF CREDITORS FROM WHICH AN INDIVIDUAL DEBTOR IS NOT RELEASED AFTER THE COMPLETION OF INSOLVENCY PROCEEDINGS

Abstract

The article focuses on the main aspects of the legal nature of creditors’ claims, from which an individual debtor is not released upon completion of insolvency proceedings, and also on the specific procedural features of insolvency (bankruptcy) proceedings against an individual under the relevant obligations. In the course of analyzing the provisions of the Code of Ukraine of Bankruptcy Procedures (hereinafter – CUBP) which, among other things, regulate the procedure for opening and closing insolvency (bankruptcy) proceedings, the author identifies the potential possibility of “idle” (ineffective) insolvency proceedings against an individual debtor with respect to the debtor’s property obligations, i.e., proceedings which would not lead to preferential property legal consequences even if the debtor fulfills the restructuring plan. It is established that this is possible, in particular, if all obligations of an individual debtor are those specified in part two of Article 134 of the CUBP, i.e., from which an individual is not released after the completion of insolvency proceedings. The author analyzes the legislative approach to the formation of the list of creditors’ claims from which an individual is not exempted after the completion of insolvency proceedings, which are enshrined in part two of Article 134 of the CUBP. Special attention is paid to the problematic aspects of application of the provisions of paragraph 3 of part two of the said Article in practice, given that the ability of participants to virtually any relative property civil legal relationship to inextricably link it with the personality of the debtor requires additional reflection. The author concludes that effective application of Article 134 of the CUBP in modern conditions requires both consideration of the specifics of the legal nature of the relevant circumstances and procedural features of insolvency (bankruptcy) proceedings of an individual.