Claims in bankruptcy in cases: step back from international standards

The article is devoted to the hot issue – consideration of claims within the bankruptcy proceedings. The author analyzes the relevant provisions of the current legislation through the prism of how special law in the sphere of bankruptcy develops in accordance with the recommendations of international organizations, as well as how the peculiarities of the concursus based process are taken into account, in particular, the legal nature of collective proceedings to solve the problems of debt of the insolvent person. An important consequence of recognizing a person an insolvent or commencement of a bankruptcy case is the seizure of all legal actions involved the property of the debtor. This fulfills an important function – in this way, the debtor’s estate (mass of the debtor) is saved at a certain stage of the bankruptcy proceeding, when the debtor's economic situation is examined and a proper bankruptcy procedure is chosen in order to find the best way to solve debt problems. In order to fulfill this goal, the author has set a task to review the latest legislative changes in this area of legal regulation and to study the court practice of relevant provisions application. The analysis showed that the current practice of applying the relevant provisions of the Code on bankruptcy procedures and further changes in the current legislation, which has taken place under the influence of case practice, does not quite correspond to the best world practice. The author reasoned a recommendation regarding the need to return the text of Article 7 of the Bankruptcy Code to what existed at the time of introducing such provisions into a special law, with the obligatory clarification of the relevant procedure in order to formulate a more accurate formulation of such element of the bankruptcy system in order to avoid further too wide interpretation of the law.

recognition of a person insolvent; collective procedure; concursus based process; moratorium; bankruptcy cases; bankruptcy disputes