Private bankruptcy in the Russian Federation: reality and perspectives

Abstract

The research is dedicated to a number of problematic areas in implementing a social function of individual bankruptcy. Crisis events of 2020 required measures from many states intended to support both large and small businesses and individual citizens. Personal bankruptcy as a legal tool provides an opportunity for persons with financial hardships to be legally released from further fulfillment of creditor claims. Along with that, it becomes more and more relevant to overcome bureaucratic, financial and other barriers to exercise rights and legal interests of consumers in this area. The paper is intended to identify a number of problems impeding the implementation of the social function of private bankruptcy and to develop possible solutions during the discussion. These issues were addressed based on regulatory and scientific sources containing relevant information on the institute of private bankruptcy using a number of general scientific (analysis, induction) and particular scientific (formally legal) methods. The research resulted in a list of primary problematic aspects in legal regulation and practice of private bankruptcy in the Russian Federation impeding the implementation of the social function of this institute. Solutions are proposed for discussion, which are related to financing private bankruptcy, abuse of the creditor right, low level of population awareness of the ways, methods and consequences of solving issues connected with overdue debts. This paper presents an overview of primary problematic aspects and their solutions. Each aspect will be considered in more detail in future researches.

Keywords

• bankruptcy
• individual bankruptcy
• insolvency
• private bankruptcy