The main purpose of the bankruptcy procedure is to make a fair distribution of the bankruptcy (liquidation) estate of an insolvent debtor between its creditors. Unlike creditors in bankruptcy which claims may be satisfied exclusively within the framework of the bankruptcy proceedings based on the priority and proportionality principles, creditors which have moratorium exempt claims may be satisfied off the priority waitlist. In this context, of particular relevance is the issue of appropriate legal regulation and efficient practical exercise of control by an insolvency officer over fulfillment by the debtor of monetary obligations to creditors whose claims are exempt from moratorium, since the preferential order according to which they are satisfied has a tangible impact on the balance of the parties’ interests in a bankruptcy case.

The provisions of the current law of Ukraine “On Restoring Debtor’s Solvency or Declaring Bankrupt” which lays down the rules regulating the said control, contain significant gaps entailing practical problems for the subjects of law application, particularly judges, and also for the parties to a bankruptcy case, the Ministry of Justice of Ukraine, and especially for insolvency officers.

The newly adopted Code of Ukraine on Bankruptcy Procedures has also left this issue unattended, since it introduced no changes to the procedure according to which the insolvency officer exercises control over fulfillment by the debtor of monetary obligations to creditors with moratorium exempt claims.

The purpose of the article is to analyze the reasons which have a negative impact on the practical implementation of the insolvency officer’s function of control over fulfillment by the debtor of monetary obligations to creditors with moratorium exempt claims, and also to present the proposals regarding the ways to ensure the efficiency of such control. The author examines control over fulfillment of creditors’ claims as a set of sequential actions made by an insolvency officer with the aim of performing the tasks assigned to the latter in the bankruptcy procedures.

The author also formulates the concept and the purpose of control over satisfaction of creditors’ claims which are exempt from moratorium, investigates the factors which ensure efficient control; and proposes measures aimed at improving the efficiency of control exercised by an insolvency officer over fulfillment of creditors’ claims which are exempt from moratorium.

The author comes to the conclusion that low efficiency of control exercised by an insolvency officer in bankruptcy procedures over fulfillment of creditors’ claims which are exempt from moratorium is due to the incompleteness of statutory regulation which, given that legal regulation of insolvency officer’s activity is based on special permits, may not be narrowed down to the issue of mere interpretation.

List of legal documents

Legislation

1. Hospodarskyi protsesualnyi kodeks Ukrainy [The Economic Procedural Code of Ukraine]: Zakon Ukrainy [the Law of Ukraine] vid 6 lystopada 1991 r. № 1798-XII <http://zakon0.rada.gov.ua/laws/show/1798-12> (accessed: 01.02.2019) (in Ukrainian).

2. Kodeks Ukrainy z protsedur bankrutstva [The Code of Ukraine on Bankruptcy Procedures]: Zakon Ukrainy [the Law of Ukraine] vid 18 zhovtnia 2018 r. № 8060 <http://w1.c1.rada.gov.ua/pls/zweb2/webproc4_1?pf3511=63518> (accessed: 01.02.2019) (in Ukrainian).

3. Pro vidnovlennia platospromozhnosti borzhnyka abo vyznannia yoho bankrutom [On Restoring Debtor’s Solvency or Declaring Bankrupt]: Zakon Ukrainy [the Law of Ukraine] vid 14 travnia 1992 r. № 2343-XII <http://zakon3.rada.gov.ua/laws/show/2343-12> (accessed: 01.02.2019) (in Ukrainian).

4. Pro banky i bankivsku diialnist [On Banks and Banking]: Zakon Ukrainy [the Law of Ukraine] vid 7 hrudnia 2000 r. № 2121-III <http://zakon.rada.gov.ua/laws/show/2121-14> (accessed: 01.02.2019) (in Ukrainian).

5. Pro zvernennia hromadian [On Citizens Appeals]: Zakon Ukrainy [the Law of Ukraine] vid 2 zhovtnia 1996 r. № 393/96-VR <http://zakon.rada.gov.ua/laws/show/393/96%D0%B2%D1%80> (accessed: 01.02.2019) (in Ukrainian).

6. Pro vykonavche provadzhennia [On Enforcement Proceedings]: Zakon Ukrainy [the Law of Ukraine] vid 2 chervnia 2016 r. № 1404-VII <http://zakon.rada.gov.ua/laws/ show/1404-19> (accessed 01.02.2019) (in Ukrainian).

7. Pro oplatu pratsi [On Labor Remuneration]: Zakon Ukrainy [the Law of Ukraine] vid 24 bereznia 1995 r. № 108/95-VR <http://zakon.rada.gov.ua/laws/show/108/95%D0%B2%D1%80> (accessed: 01.02.2019) (in Ukrainian).

8. Pro zbir ta oblik yedynoho vnesku na zahalnooboviazkove derzhavne sotsialne strakhuvannia [On Collection and Accounting of the Unified Contribution for Compulsory State Social Insurance]: Zakon Ukrainy [the Law of Ukraine] vid 8 lypnia 2010 r. № 2464-VI <http://zakon.rada.gov.ua/laws/show/2464-17> (accessed: 01.02.2019) (in Ukrainian).

9. Podatkovyi kodeks Ukrainy [The Tax Code of Ukraine]: Zakon Ukrainy [the Law of Ukraine] vid 2 hrudnia 2010 r. № 2755-VI <http://zakon.rada.gov.ua/laws/show/2755-17> (accessed: 01.02.2019) (in Ukrainian).

Bibliography

Authored book

10. Novoseltsev I, Transkordonna neplatospromozhnist u mizhnarodnomu pryvatnomu pravi [Cross-Border Insolvency in International Private Law] (Naukovo-doslidnyi instytut pryvatnoho prava i pidpryiemnytstva APrN Ukrainy 2009) (in Ukrainian).

11. Poljakov B, Pravo nesostojatel’nosti (bankrotstva) Ukrainy [Insolvency (Bankruptcy) Law of Ukraine] (Іn Jure 2003) (in Russian).