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| Article title | Concept for Improvement of Insolvency Legislation | ||
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| Name of magazine | Legal journal «Law of Ukraine» (Ukrainian version) | ||
| Issue | 6/2018 | ||
| Сторінки | [86-97] | ||
| DOI | 10.33498/louu-2018-06-086 | ||
| Annotation | The issue of debt repayment to creditors is an inseparable element of the economic domain, since economic activities always presuppose the involvement of business entities which may not be able to fulfill their obligations. The institution of bankruptcy, which is usually a creditor’s last hope for debt repayment, is currently subject to many complaints on the part of Ukrainian business entities as well as foreign investors, despite numerous amendments to insolvency legislation. The statistical data eloquently demonstrate that rehabilitation procedures applied to the debtor in bankruptcy have low efficiency and this institution is unattractive for creditors. This issue is of a complex nature and requires the development of a comprehensive concept for improvement of insolvency legislation. The purpose of this article is to develop the concept for improvement of insolvency legislation. The author studies the terms upon which bankruptcy proceedings are commenced, and suggests that the procedure for commencement of bankruptcy proceedings may be simplified by leaving only the availability of a court decision on money recovery from the debtor as a requirement thereof. The author also analyses the challenging issues associated with the pledged property sale in a bankruptcy case. Based on the results of his study, the author concludes that practical application of the current insolvency legislation highlighted that rehabilitation procedures to which the debtor is subjected in bankruptcy have low efficiency and this institution is unattractive for creditors. The concept of insolvency legislation improvement should be aimed at overcoming the following problematic aspects: complicated access to the commencement of bankruptcy proceedings ensuing from a large scope of undisputed creditor claims required to commence bankruptcy proceedings, and the binding requirement to commence enforcement proceedings against the debtor; a long period of the liquidation procedure resulting from the possibility of a long period during which interim court decisions in the bankruptcy case may be appealed against; delays in the process of debtor’s property sale by secured creditors and the over-regulated procedure of bankrupt’s property sale; and impossibility of compulsory liquidation of debtors which have a small debt.
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| Keywords | bankruptcy; insolvency; bankrupt; creditors; pledged property | ||
| References |
List of legal documents
Legislation
Bibliography
Authored books 10. Zywicki Todd J, Bankruptcy Law as Social Legislation (George Mason Law & Economics Research Paper, 2001) <https://www.law.gmu.edu/assets/files/publications/working_ papers/01-18.pdf> accessed 8 May 2018 (in English). 11. ‘Reyting ekonomik – Doing Business’ [Rating of Economics – Doing Business] <http://russian.doingbusiness.org/rankings> accessed 5 May 2018 (in Russian). 12. ‘Sudova statystyka’ [‘Judicial Statistics’] (Sudova vlada Ukrainy) <https://court.gov.ua/ inshe/sudova_statystyka/> accessed 5 May 2018 (in Ukrainian). 13. Pisna D, ‘Bankrutstvo po-ukrainsky: problemy ta perspektyvy’ [Bankruptcy in Ukrainian: Problems and Prospects] (Iurydychna hazeta, 24 Sichnia 2017) <https://www.pressreader.com/ukraine/yurydychna-gazeta/20170124/281668 254687302> accessed 5 May 2018 (in Ukrainian).
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