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.

List of legal documents 
 

Legislation 
1. Pro vidnovlennia platospromozhnosti borzhnyka abo vyznannia yoho bankrutom [On Restoring Debtor’s Solvency or Declaring it Bankrupt]: Zakon Ukrainy [the Law of Ukraine] vid 14 travnia 1992 r. № 2343-XII. Vidomosti Verkhovnoi Rady Ukrainy. 1992. № 31. St. 440 (in Ukrainian). 
 

Bibliography 
 

Authored books 
2. Butyrska I, Pravovyi status uchasnykiv spravy pro bankrutstvo [The Legal Status of the Participants of Bankruptcy Case] (Tekhnodruk 2017) (in Ukrainian). 
3. Golmsten A, Istoricheskiy ocherk Russkago konkursnago protsessa [Historical Outline of the Russian Competitive Process] (Tipografiya V S Balasheva 1888) (in Russian). 
4. Poliakov B, Pravo nespromozhnosti (bankrutstva) v Ukraini [Insolvency Law in Ukraine] (In Yure 2011) (in Ukrainian). 
5. Pryhuza P ta Pryhuza A, Naukovo-praktychnyi komentar Zakonu Ukrainy “Pro vidnovlennia platospromozhnosti borzhnyka abo vyznannia yoho bankrutom” u redaktsii z 18 sichnia 2013 roku (doktrynalne tlumachennia norm prava neplatospromozhnosti ta statei 1-21 [Scientific and Practical Commentary of the Law of Ukraine “On Restoring Debtor’s Solvency or Declaring it Bankrupt” in the Wording of January 18, 2013 (Doctrinal Interpretation of the Rules of the Insolvency Law and Articles 1-21] (TDS 2013) (in Ukrainian). 
6. Shershenevich G F, Konkursnoe pravo [Competitive Law] (TipografIya Imperatorskago Universiteta 1898) (in Russian). 
7. Traynin A N, Nesostoyatelnost i Bankrotstvo [Insolvency and Bankruptcy] (Izdanie Yuridicheskago Knizhnago Sklada “Pravo” 1913) (in Russian). 

Websites 
8. Anderson H, ‘Theory and reality in Insolvency Law: some contradictions in Australia’ (Company and Securities Law Journal, 2009) <http://www.clta.edu.au/professional/ papers/conference2009/AndersonCLTA09.pdf> accessed 5 May 2018 (in English).
9. Wessels B, ‘Principles of European Insolvency Law’ (ABI Journal, September 2003) <https://www.iiiglobal.org/sites/default/files/21-_PEILABIjournal_appended.pdf> accessed 7 May 2018 (in English).

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).