First, the legal implications of the inability of an individual to fulfill their property obligations and repay debts are foreseen. It means that to such an individual, insolvency proceedings may be opened and a procedure for the restructuring of debts is introduced, or such a person may be declared bankrupt in an insolvency proceeding, using the procedure for satisfying claims by creditors under the rules provided for by the Code.

At the same time, it can only initiate a bankruptcy procedure for an individual, in accordance with the Code, if a person considers that he can not overcome the financial difficulties in some other way. The proceedings are opened only on his application.

The Debtor can initiate his own bankruptcy in the following cases:

• If the debt to creditors is more than 30 minimal salaries (now it is 111 690 UAH).
• If he has stopped paying more than 1/2 monthly payments for each loan commitment within 2 months.
• If a resolution has been issued in the enforcement proceedings concerning the absence of property from the debtor, which can be levied for covering debts.

Within 5 years from the day of the Code's entry into force, the debts of an individual arising prior to the date of the entry into force of this Code for a loan in foreign currency (which is secured by a mortgage of an apartment or residential building, which is the only place of residence of the debtor's family) is restructured according to the procedure insolvency of an individual in accordance with a restructuring plan or a peace agreement.

That is, during this five-year transitional period individuals will be given the opportunity to restructure mortgage foreign currency loans. The conditions for their restructuring are set forth in the Final Provisions of the Code. In particular, it is provided that the composition and amount of monetary claims of a secured creditor for obligations arising out of a loan in foreign currency should be determined in national currency at the rate established by the NBU as of the date of opening of proceedings in the case of insolvency of individuals. In this case, the moratorium on the seizure of apartments of debtors, introduced in 2014, is no longer in force.

The advantage of the new procedure for a physical person is that, upon filing for bankruptcy, the debtor has to deal only with the court and arbitration authorities, and not with creditors or collectors. In this case, the amount of debt is fixed, accrual of interest and fines is terminated. The economic court recognizes the claims of the secured creditor by the debtor in the amount of the market value of the apartment or residential building, which ensures the requirements of such a lender, which is determined by the appraiser determined by the creditor. Upon completion of the bankruptcy procedure, all debts are considered to be canceled or written off even if the debtor's property was not sufficient for settlement (the balance is subject to forgiveness).

In its turn, the bankruptcy procedure will enable the creditors to solve the problem with a certain part of the unemployed (bad) loans, even if not all the possible amount is received.