The practical application of the Code of Ukraine on Bankruptcy Procedures (the Code of Bankruptcy) to restore the solvency of an individual has revealed many shortcomings and gaps in the application of this institution, which has several reasons. First, being a completely new institution, the application of norms to restore the solvency of the individual was doomed to the existence of conflicts. Secondly, in general, the legal regulation of the restoration of the solvency of an individual is carried out on the basis of basic acts of economic legislation and the Code of Bankruptcy. In this case, the proceedings on the insolvency of the debtor – an individual, a natural person – entrepreneur is carried out in the manner prescribed by the Code of Bankruptcy for legal entities, taking into account the features established by Book 4 of the Code of Bankruptcy (“Restoration of solvency of an individual”). In addition, a large number of bylaws carry out legal regulation of this institution. Such a significant number of regulations governing the procedure for restoring the solvency of an individual also complicates the practical application of Book 4 of the Code of Bankruptcy. Third, there is the lack of long-term judicial practice, which has a significant impact on the practical application of the institution of restoring the solvency of the individual.

The purpose of this article is to reveal the features of opening and closing insolvency proceedings as key stages of insolvency case of individual, identifying and analyzing problems that arise in the practice of applying the relevant provisions of the Code of Bankruptcy.

According to the results of the study, the authors conclude that the stages of opening and closing proceedings in the case of insolvency of the debtor – an individual, are key and play a special role in the whole procedure. This is due to the fact that when opening proceedings the court must check the completeness of the evidence provided by the debtor, and in case the debtor provides inaccurate information in the declaration, the debtor’s actions to evade repayment to creditors, the presence of a court decision to bring the debtor to administrative or criminal responsibility, illegal actions related to insolvency – the court has the right to close the proceedings. Analysis of the legal regulation of the grounds for closing the insolvency proceedings of an individual shows the imperfection of legal regulation in this area, which causes problems in law enforcement and heterogeneous case law.

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