MAKING OF A METHODOLOGY FOR DEVELOPING A DEBT RESTRUCTURING PLAN AS A FACTOR IN INCREASING THE EFFICIENCY OF CITIZEN BANKRUPTCY PROCEDURES

Abstract

The practice of bankruptcy procedures for citizens in Russia showed their lack of effectiveness, which is due, among other things, the uncertainty of legal regulation of the issues of restoring their solvency. Objectives of the article are formation of a logically and scientifically based methodology for developing a plan for the restoration of citizens’ solvency, taking into account the financial and economic features of citizens’ activities and the requirements of legislation, theoretical substantiation of legal and economic criteria for the restoration of citizens’ solvency in order to improve the efficiency of bankruptcy rehabilitation procedures.According to the results of the study at the theoretical level author determinedthe essence of the restoration of the solvency of the citizendebtor, which allowed to formalize the legal and economic criteria for the restoration of their solvency. A methodology has been developed for developing a plan for the restoration of citizens' solvency. Author formulated proposals to improve the legal regulation of bankruptcy procedures of citizens, taking into account their financial and economic features.It was concluded that the plan to restore the solvency of citizens can be considered as a form of a contract between creditors and a debtor, significantly reducing the costs of opportunism and increasing the efficiency of bankruptcy procedures. The obtained results are of practical importance for the regulator and participants in bankruptcy proceedings with respect to citizens, as well as theoretical significance in terms of helping to contribute to the development of the theory of solvency of citizens.

Keywords

• citizen bankruptcy
• debt restructuring
• solvency restoration
• solvency restoration plan
• methodology