Debt restructuring plan of the debtor in insolvency proceedings of an individual
Year: 2026
Type: article
Abstract: The article is devoted to the study of the debtor’s debt restructuring plan in the insolvency procedure of an individual. The purpose of the article is to provide a comprehensive analysis of the legal nature and content of an individual’s debt restructuring plan in insolvency proceedings, to determine the criteria for its reality and enforceability, as well as to clarify the legal consequences of submitting a formal restructuring plan or one that does not comply with the requirements of bankruptcy legislation. The authors analyze the procedural powers of the economic court when deciding on the opening of insolvency proceedings in accordance with the provisions of the Code of Ukraine on Bankruptcy Procedures, and also develop practical approaches to distinguishing the grounds for leaving an application for the opening of insolvency proceedings of an individual without movement, returning it, or refusing to open proceedings in cases where the debtor submits an improper draft debt restructuring plan. Based on the results of the study, the authors conclude that in the insolvency procedure of an individual, the debt restructuring plan is a key instrument for achieving the goal defined by law – restoring the debtor’s solvency on the principles of good faith, compromise, and a balance of interests between the debtor and creditors. Such a plan should not be just a formal annex to the application for the opening of insolvency proceedings of an individual, but rather a real, economically substantiated, and enforceable document that contains clear conditions for changing the method and procedure for fulfilling the debtor’s obligations. At the same time, at the stage of deciding on the opening of insolvency proceedings, the economic court carries out only a formal review of the application and the documents attached thereto for application with statutory requirements, without assessing their substantive validity. It is emphasized that bad-faith conduct of the debtor, manifested in the failure to submit a debt restructuring plan or in the submission of a fictitious or deliberately unenforceable plan, contradicts the objectives of the debt restructuring procedure and indicates an abuse of rights on the part of the debtor. Such conduct undermines the very idea of restructuring and makes it impossible to achieve its objectives.
Authors: A. A. Butyrskyi, I. A. Butyrska
Institution: Yuriy Fedkovych Chernivtsi National University
Language: English
Subfield: Law
Field: Social Sciences
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W7144206783