At the present stage, bankruptcy proceedings in Ukraine are regulated by the Code of Ukraine for Bankruptcy Proceedings (CBP) which is in effect since October 21,2019. This is a huge and progressive step in the development of bankruptcy proceedings or receivership proceedings in our country. At the same time, the CBP application practice has revealed a number of clerical errors, conflicts and gaps which law enforcement agencies have to overcome today. From this perspective, it is important to note that CBP provisions apply to bankruptcy proceedings commenced after as well as before the Code’s entry into force. And one of the key issues is still the application of the provisions of economic procedure legislation in implementing bankruptcy proceedings.

This article aims at highlighting the issues which pertain to the application of economic procedure rules in bankruptcy (insolvency) proceedings.

 The authors have identified a conflict in the application of the provisions of the Ukrainian Code of Economic Procedure (Ukrainian CEP) with regard to insolvency cases of individuals. It is noted that when the court conducts main proceedings in a bankruptcy case, the provision for dealing with such cases under the ordinary litigation rules does not apply given the specifics of bankruptcy proceedings. The article analyzes appeals against court decisions in the bankruptcy proceedings.

Based on the results of the study, the authors come to the conclusion about current references in Ukrainian CEP to the invalid Bankruptcy Law which create conflicts for the courts; the ordinary litigation rules prescribed by Ukrainian CEP are absolutely unsuitable for bankruptcy proceedings and in practice the courts do not apply them at all; Ukrainian CEP articles on leaving without action or dismissing the request for commencement of bankruptcy proceedings have nothing to do with the shortcomings of the request as such and do not allow applying the relevant provisions of Ukrainian CEP in these cases; extended application of the general provisions of Ukrainian CEP without due regard for the specifics of bankruptcy proceedings for resolving property disputes within a bankruptcy case may block the bankruptcy proceedings as such; clear conditions should be established for commencement of bankruptcy proceedings linking them to stable insolvency of debtor; there is a need to reduce the number of court decisions subject to appeal in bankruptcy proceedings through procedural acts adopted in respect of minor and organizational issues.

Bibliography

Authored books

1. Shershenevych G, Konkursnyj process [Competitive Process] (Statut 2000) (in Russian).

Journal articles

2. Butyrskyj A, ‘Koncepciya udoskonalennya zakonodavstva pro nespromozhnist’ [‘The Concept of Improving Insolvency Law’] (2018) 6 Pravo Ukrayiny 90 (in Ukrainian).

3. Radzyvilyuk V, ‘Konceptualni zminy cilovoyi spryamovanosti novitnogo zakonodavstva pro bankrutstvo’ [‘Conceptual Changes in The Target Orientation of The Latest Bankruptcy Legislation’] (2019) 8 Pravo Ukrayiny 112 (in Ukrainian).

Newspaper articles

4. Pryguza P, ‘Yak procesualna diyalnist kredytoriv u spravi pro bankrutstvo stala pidpryyemnycztvom’ [‘As the Litigation Activity of Creditors in The Bankruptcy Case Became Business’] (Zakon i Biznes, 21.03–03.04.2020) <https://zib.com.ua/ua/141949yak_procesualna_diyalnist_kreditoriv_u_spravi_pro_bankrutstv.html> (accessed: 22.06.2020) (in Ukrainian).