Ukraine's Code on bankruptcy procedure comes into effect

Ukraine's Justice Ministry has announced that the Code of Ukraine on bankruptcy procedure, which was passed by the Verkhovna Rada in October 2018, has come into effect today, October 21.

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"The Code of Ukraine on bankruptcy procedure, which was enacted in April 2019, came into effect on October 21, 2019," the ministry's press service said on Monday.

As UNIAN reported earlier, on October 18, 2018, the Verkhovna Rada, Ukraine's parliament, passed the bill related to the Code of Ukraine on bankruptcy procedure, which introduces the institution of bankruptcy of individuals in the country.

The document aims at boosting the efficiency of bankruptcy procedures, the level of protection of creditors' rights, improving the procedure for selling the debtor's property at an auction, increasing the level of performance of contracts and court decisions, as well as the settlement of relations to restore the solvency of individuals who are in a difficult financial situation and need assistance from the state.

The changes in corporate bankruptcy reform are anti-corruption in effect and include a number of progressive developments, which should improve the fulfillment of contracts and the investment attractiveness of Ukraine, the explanatory note to the draft law said.

The then Ukrainian president, Petro Poroshenko, signed the bill into law on April 21, 2019.