News date: 3 June 2025
Vadym Kizlenko, Counsel, Insolvency Receiver, and Co-Head of the Insolvency and Financial Restructuring Practice at Ilyashev & Partners Law Firm, as well as a member of the Insolvency Receivers Council of Kyiv City, spoke at the online round table “Individual Insolvency Under Martial Law” held on 29 May 2025 in Kyiv. The event was organized by the EU-funded Pravo-Justice Project.
The round table brought together representatives of the Ministry of Justice of Ukraine, judges, insolvency receivers, attorneys, academics, and legal experts to address the key challenges and legal complexities associated with the application of individual insolvency procedures during martial law.
In his remarks, Vadym Kizlenko noted a significant rise in interest in individual insolvency procedures following the full-scale invasion. At the same time, he highlighted a growing number of attempts to misuse the procedure for dishonest purposes. He focused on the practical aspects of individual insolvency, stressing the importance of debtor good faith and professional legal guidance.
“The individual insolvency procedure is a powerful legal instrument that works effectively provided the debtor acts in good faith. It is not a mechanism for evading obligations, but rather an opportunity for financial reset for those who cooperate openly with the court, legal counsel, and insolvency receiver. The system includes robust safeguards: fraudulent transactions can be identified, and proceedings can be denied or terminated based on false or misleading data. The outcome of the procedure largely depends on the expertise of the attorneys and insolvency receivers who support the debtor at every stage,” said Vadym Kizlenko.
The event’s agenda included a presentation of an updated analytical report on the application of individual insolvency during martial law, a review of appellate court jurisprudence, and a panel discussion on the roles of courts, creditors, and insolvency receivers in ensuring the effectiveness of the insolvency framework.
Participants also addressed several practical issues, such as the functionality of the individual insolvency mechanism during wartime, strategies to prevent abuse by debtors, and ways to safeguard the process from fraudulent transactions and manipulative practices.
The EU Pravo-Justice Project coordinates the work of over 70 international and 50 national experts, providing specialized support for justice sector reform. The project promotes the advancement of the rule of law in Ukraine in line with European standards and best comparative practices.