Judicial procedures and disputes: legal protection of your interests
Legal support in insolvency cases is more than mere courtroom participation. It is a strategy to safeguard assets, preserve business reputation, and, at times, the last chance for a business to recover. PRAGNUM provides full legal assistance at all stages of bankruptcy judicial procedures and challenges to suspicious or fictitious transactions made by the debtor.
Bankruptcy judicial procedures
Bankruptcy is a court-supervised procedure governed by commercial litigation rules. It may be initiated by either the debtor or a creditor and includes several clearly defined stages:
- Opening of bankruptcy proceedings. The court accepts the petition and issues a ruling on commencement. A property administrator (insolvency officer) is appointed, and deadlines for filing creditor claims are established.
- Property management. Creditors are identified and a claims' registry is formed. During this phase, the debtor is prohibited from independently disposing of significant assets without the consent of the administrator.
- Rehabilitation or settlement agreement (if applicable). The company may reach an agreement with creditors to restructure debts and avoid liquidation.
- Liquidation procedure. If rehabilitation is not possible, the court declares bankruptcy and initiates liquidation.
Assets are sold, and creditor claims are satisfied in a statutory order of priority.
Rights and duties of the parties
- The debtor must provide accurate financial information and cooperate with the court and the insolvency officer.
- Creditors have the right to file claims, participate in creditors' meetings, and challenge the debtor’s suspicious actions.
- The insolvency officer oversees the estate, conducts the case, and sells the debtor’s assets.
PRAGNUM’s attorneys represent both debtors and creditors, ensuring full legal protection and professional coordination at every stage.
Bankruptcy Court Procedures in Kyiv – Order Legal Services
Challenging Debtor Transactions
During or even before bankruptcy proceedings, a debtor may enter into transactions aimed at asset withdrawal or giving preference to specific creditors. Such actions disrupt the balance of interests and may be declared invalid.
Grounds for challenging transactions:
- Fictitious transactions (executed without the intent to perform);
- Harm to creditors (e.g., selling assets below market value);
- Preferential treatment of one creditor over others (e.g., repayment to a specific party despite other outstanding debts);
- Transactions concluded shortly before filing for bankruptcy (within one year — under enhanced judicial scrutiny).
Judicial Practice
Ukrainian courts increasingly grant claims for invalidation of transactions within bankruptcy proceedings.
This enables the return of assets to the liquidation estate and fair satisfaction of creditor claims.
How can a creditor protect their rights?
- Consult PRAGNUM attorneys to analyse the debtor’s actions;
- Initiate judicial challenges to debtor transactions;
- File appropriate motions within the bankruptcy case.
Order Legal Support in Challenging Debtor Transactions in Kyiv
Legal support in judicial proceedings
Participation in court is more than just attending hearings. It is strategic risk and reputation management. PRAGNUM provides full legal support:
- Case analysis and strategy development.
We examine all documentation, financial flows, and contracts, and prepare a personalized defence strategy.
- Court representation.
Our attorneys have a strong record in commercial courts, including dispute resolution, transaction challenges, defence against claims, bankruptcy litigation, and representation at creditor meetings.
- Protection against wrongful claims.
If you are a debtor — we prevent abuse of the bankruptcy process against you. If you are a creditor — we ensure your rights are not ignored.
Why clients choose PRAGNUM:
- In-depth expertise in litigation;
- Comprehensive legal support;
- Proven success in bankruptcy cases;
- Strong courtroom team with arbitration practice;
- Professional approach to analysing deals and assets.
Experts in this industry
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Comprehensive Bankruptcy Legal Support in Kyiv
Frequently Asked Questions (FAQ)
1. How does bankruptcy court procedure work?
Bankruptcy in Ukraine is governed by the Code of Ukraine on Bankruptcy Procedures (previously: the Law "On Restoring Solvency of a Debtor or Declaring It Bankrupt"). It includes several key stages:
Commencement of proceedings – The debtor or creditor files a petition with the Commercial Court, which then initiates the case.
- Filing and examination of claims – Creditors submit their claims, which are reviewed and entered into the registry by the insolvency officer.
- Property administration – The debtor’s power to manage assets is restricted. The court appoints an insolvency officer.
- Rehabilitation or settlement agreement (subject to creditor consent) – An opportunity for the business to recover.
- Bankruptcy declaration and liquidation – If rehabilitation fails, the court declares bankruptcy and opens liquidation, during which the debtor’s assets are sold.
- Attorney representation at every stage is critical to protect creditor rights, preserve assets, or minimize risk for the debtor.
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2. Can debtor transactions be challenged?
Yes — and they must be, if the debtor’s transactions violate the rights of other creditors or show signs of fraud, undervaluation, preferential treatment of insiders, or aim to divert assets.
Grounds for declaring transactions void:
Intent to hide or withdraw assets before bankruptcy;
- Significant undervaluation of property in sales;
- Violation of the statutory priority in satisfying creditor claims;
- Illegal waivers or asset transfers without adequate compensation;
- Fictitious agreements with affiliated parties.
Challenges can be made within the bankruptcy case or through separate litigation. Our attorneys review documents, build evidence, prepare legal claims, and represent clients in court — both in asset defence and asset recovery into the liquidation estate.
Judicial Representation in Bankruptcy Cases
3. What rights does a creditor have in bankruptcy?
Creditors enjoy a wide range of legal rights that allow them to influence proceedings and protect their financial interests. A creditor has the right to:
- File a bankruptcy petition with the Commercial Court;
- Submit claims for inclusion in the creditor registry;
- Participate in creditor meetings and vote on key matters (e.g., rehabilitation, asset sales, insolvency officer appointment);
- Challenge actions of the debtor or the insolvency officer if they violate the law;
- Contest suspicious transactions and seek their invalidation;
- Obtain debt repayment from the liquidation estate in accordance with legal priority.
Legal support from PRAGNUM attorneys ensures that these rights are enforced efficiently, with proper documentation and in a timely manner — significantly increasing the chance of successful debt recovery.
Qualified legal assistance is the first step to protecting your interests.
Financial distress or suspicious actions by the debtor should never catch you off guard. PRAGNUM will help you act decisively, lawfully, and on time.
Call us or submit a request via the contact form — a professional consultation will help you find an effective legal solution.
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