Grounds for a creditor to file a bankruptcy petition

The basic conditions for a creditor to file a bankruptcy petition are set out by Article 10 of the law “On economic insolvency (bankruptcy).” The grounds for an application by a creditor for bankruptcy can be as follows:

• the creditor has reliable data regarding the debtor’s inability to pay its debts, if its inability to pay debts is or is becoming permanent;
• if compulsory execution is applied to the debtor but is not carried out within one month due to the lack of assets, or it is found during enforcement that the debtor does not have assets sufficient to satisfy the claims against him;
• failure by the debtor to perform payment obligations within the time determined by the creditor for the repayment of the debt, after which the creditor intends to apply for bankruptcy. The length of the time determined by the creditor for debt repayment, after which he intends to apply for bankruptcy, should not be less than one month;
• the failure to pay money to the creditor (creditors) for obligations arising from employment and associated relationships within the time prescribed by law or in accordance with them;
• the debtor’s inability to pay its debts, intentionally caused by an act of an individual entrepreneur debtor and/or the act of an individual who is an interested party in relation to the debtor, for which they are convicted in accordance with the law;
• the concealment or embezzlement of the debtor’s property or other action by the individual entrepreneur debtor or an interested person in relation to the debtor, as a result of which the debtor has become unable to pay its debts;
• the value of the property of the legal entity being liquidated is not sufficient to satisfy the creditors’ claims (Article 247 of the Law “On bankruptcy”);

if the debtor notifies the creditor, the commercial court, or the media of its inability to pay its debt, which is or is becoming permanent, including under Article 255 of the Law “On bankruptcy”.