The economic and legal mechanism that allows you to level the negative consequences of debtors’ insolvency.
It has already happened that the institution of bankruptcy and the corresponding procedure in our country at this time very often continue to be perceived as something extremely negative, almost catastrophic.
At the same time, in most developed legal systems, the institution of bankruptcy is an important and effective balancer of economic processes.
On the one hand, the specified procedure allows the debtor to get rid of the excessive burden of debt obligations, which does not put an end to his further plans to build a successful business, on the other hand, it allows creditors to effectively receive debt from the debtor, even if not always in full, and on the third hand provides an opportunity for potential investors to purchase the bankrupt’s property at an attractive price.
For quite a long time, the institution of bankruptcy has been developing and improving both through the practice of its application and the borrowing of norms from other legal systems, and today, in our opinion, it has a fairly balanced character for all participants in the procedure.
The established institution of insolvency of individuals is also gradually developing, making it an effective tool for protecting the rights of debtors.
