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Why the law on private bankruptcy is dangerous for Ukraine?

Throughout several years the rumors over the adoption of a new law on bankruptcy have been exaggerated largely. This law is a target for many, starting from the currency loaners paying their credits in a good order even they barely can, to the dishonest citizens going to use this law in order to abuse their creditors.Banks, financial institutions and leasing companies naturally are against the adoption of this law and, moreover, implementation of this law to the existing loaners. Based on the people’s discussions in the social networks, forums and smoking rooms, it is easy to understand that loaners are very eager to ‘cheat’ their creditors. Another argument against the adoption of the law is the statistics based on which most of our citizens do not work officially, but those who do live beyond the poverty line. Most of our citizens who took loans without proper calculation of their own capacities, bring as an example Europe where the procedure of private bankruptcy is possible.Let us take Germany as an example, where in comparison with other EU countries this procedure is the more widespread and strict. At the same time its mechanism is polished to the details and includes full monitoring of the debtor and his family during the procedure of recognition him a bankrupt. The procedure itself lasts 6 years from the moment of official recognition of bankruptcy by a judge and finishes by erasing all the debts. The procedure consists of the following stages: submitting an application of recognition yourself a bankrupt, drafting a table of debts and creditors and attempted settlement outside the court. In case of unsuccessful settlement, an application on the bankruptcy procedure with release from debts is submitted. At the same time all the expenses on lawyer, courts, settlements and administration of the case must be paid in full. If a person is not capable of paying the aforementioned expenses, then he still can pay in parts and request non-governmental organizations to pay the costs. During the procedure all financial transactions on the accounts, including receiving inheritance, etc, are strictly controlled. In case of concealment of any income or the  place of work, or valuable items, Criminal Code of Federal Republic of Germany stipulates criminal responsibility from 3 to 12 years of imprisonment.During the bankruptcy procedure a person cannot have any credit cards, take new loans, own any property, by means of which it would be possible to cover his debts in full or in parts. For example, a person under the bankruptcy procedure cannot neither buy subscription for public transport, nor set an agreement with a mobile operator; it would be actually impossible to change the place of residence because none of the landlords will rent his apartment to an insolvent tenant. It became possible due to the general credit system Shufa where data goes from all the mobile operators, banks, courts, internet-shops; it also offers credit rating of a client to the organizations for the assessment of his solvency. If the procedure of personal bankruptcy is there, Shufa gives it a red mark that prevents person from using full service of internet-providers, mobile providers and the banks because no one would like to deal with a bankrupt. Regarding Ukraine with its ‘not working’ laws and the corruption level beyond the boundaries, one can say that the bankruptcy law once adopted will be used not by those who need it, but those who would use it to make their fortune. As long as current situation continues, the adoption of the law on private bankruptcy has no sense.
Why the law on private bankruptcy is dangerous for Ukraine?
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