Ukrainian's borrowers bankruptcy

Bankruptcy Center is a powerful tool to help banks with managing debts of insolvent clients.

In Ukraine debts recovering from borrowers is very difficult to manage. To the moment when bank initiates judicial proceedings, debtor (borrower) already has sold his unpledged assets. Peculiarities of the Law of Ukraine allow debtors to bilk the debt for several years legally. Even if debtor (borrower) is passive in judicial proceedings, collection of pledged property by the bank can take more than a year. Corrupt state executive department sells pledged property on understatement of value. Bank bears additional expenses to pay for jurists, collectors, bribes, official payments. Amount of money received from selling of pledged property is not enough even to repay credit (a debt) and bank has to bear irrecoverable losses for reserves by credits, without any real opportunity to recover remaining debt.

In Customer bankruptcy procedure the entire debtor's property is selling under the court’s control more expensive and faster than through the state executors. Bank has priority right to receive money from selling pledged property and does not have losses for reserves by credits.
Customer bankruptcy is a compromise in debts adjusting for everybody: the state, a borrower, a bank.