Draft Law of Ukraine

“On Amendment of Laws of Ukraine “On Execution Procedure” and “On Restoring Debtor’s Solvency or Recognizing him a Bankrupt”

According to the amendments proposed to the Law of Ukraine “On Restoring Debtor’s Solvency or Recognizing him a Bankrupt ” moratorium imposed on creditors’ claims will not apply to payments made to satisfy creditors’ claims covered by decisions made by courts or arbitrations;

Pursuant to amendments to the Law of Ukraine “On Execution Procedure” execution procedure is subject to compulsory termination where commercial court initiates proceedings on the case of debtor’s bankruptcy if advertisement on initiating proceedings on the case of bankruptcy is published in the official printed body on the condition that the state executor is provided with the ruling of the commercial court on initiating proceedings on the case of bankruptcy or with the ruling of the commercial court obliging to publish in official printed body advertisement on initiation of proceedings on the case of bankruptcy and the copy of the official printed body that contains the above advertisement.

This draft law, if adopted, will substantially reduce the number of unexecuted court decisions on recovery of funds from debtors charged of bankruptcy and will better secure execution of court decisions and normal money turnover in the country.