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The Bankruptcy Code of Ukraine, having been adopted by a majority vote in the Verkhovna Rada of Ukraine, was finally signed by the President of Ukraine and became a de facto and de jure part of Ukraine's insolvency legislation, replacing the Law of Ukraine "On Restoring Debtor's Solvency or Declaring a Debtor Bankrupt".

The Code is primarily aimed at strengthening the level of protection of creditors' rights. This is especially true for secured loans. The Code particularly emphasises a transparent scheme for the sale of alienated property (via online platforms) and, accordingly (as intended by the legislator), will ensure the highest price for such property. In general, the mechanism of foreclosure on pledged property has been simplified. It also provides for a new level of responsibility of the debtor's management (represented by its management) for failure to take measures to prevent bankruptcy.

The procedure itself will be significantly accelerated by reducing the grounds for cassation appeal (now in Ukraine it lasts an average of 2.9 years, while in other Eastern European countries it lasts 2.3 years) and will become cheaper (the average cost of bankruptcy proceedings in Ukraine is now up to 40% of the business value, while in neighbouring countries in the region it is no more than 13%). This will help improve the country's performance in the World Bank's Doing Business ranking (both in the overall score and in the Insolvency Resolution indicator).

Finally, it is legally recognised that an individual can be bankrupt. It is expected that this procedure will primarily solve the problem of consumer loans and mortgages. As for the bankrupts themselves, they will be able to restart their financial lives and, most importantly, to resolve the painful issues of problematic mortgages in foreign currency in a civilised and realistic manner. These loans can be restructured, provided that the loan debt arose before the commented Code came into force.