Legal regulation of cross-border insolvency (bankruptcy) in the European Union

Abstract

INTRODUCTION. The regulation of the institute of cross-border bankruptcy is currently acquiring the greatest relevance, given the globalization of the economy and the internationalization of business relations. In particular, transactions with foreign counter-parties are increasingly being concluded, property is purchased abroad, large organizations establish representative offices in foreign countries. Of particular relevance is the regulation of cross-border bankruptcy in the territory of the EU, which is an integration association. In this connection, the considered problems are of particular relevance.MATERIALS AND METHODS. This study is based on scientific works of Russian and foreign researchers in the field of private international law and European law, as well as on the analysis of EU legal acts. Methodological basis of research includes a variety of methods of scientific knowledge - general scientific (analysis and synthesis, induction and deduction, systemic, method of theoretical modeling, etc.) and special legal (method of legal interpretation, comparative legal, etc.).RESEARCH RESULTS. Increased attention to the legal regulation of cross-border bankruptcy in the EU territory is currently due to the desire to develop foreign economic relations, as well as the need to eliminate existing gaps in legislation that prevent the creation of a single market. As one of the components of legal cooperation in civil cases, the legal mechanism in the field of cross-border bankruptcy is characterized by a combination of two methods: unification and harmonization of legislation.DISCUSSION AND CONCLUSIONS. In the framework of this article the authors considered the very notion of cross-border bankruptcy, as well as highlighted the main characteristics of the models of its settlement in the international community. Modern EU legal system in the field of regulation of cross-border bankruptcy acts taking into account the existing judicial practice, in order to avoid infringement of the rights of creditors, who expect the fullest satisfaction of their claims, reducing costs and timing of the case. Measures to harmonize the EU legislation in the field of bankruptcy in the member states of the Union are aimed at creating a culture of business rescue and bona fide debtor.

Keywords

• cross-border insolvency
• european union
• eu’s area of freedom
• security and justice
• center of main interests
• legal cooperation in civil matters