PROCEDURAL PROBLEMS IN ESTABLISHING FRAUDULENT BANKRUPTCY

Abstract

This article examines the meaning of fraudulent bankruptcy and the problems inherent in applications of fraudulent bankruptcy. It proposes how the regulation of fraudulent bankruptcy can be improved, and considers the historical development and legal regulation of the institute of fraudulent bankruptcy in foreign countries. Also considered is the amendment of fraudulent bankruptcy introduced by the Law on Insolvency of Enterprises of the Republic of Lithuania. The authors assert that the new law on insolvency proceedings has fundamentally changed the procedure for the examination of applications for fraudulent bankruptcy. They argue this to be the case since the court must decide not only on the grounds of fraudulent bankruptcy, but also on the persons who caused the fraudulent bankruptcy by the same decision. In such cases, also discussed is how the court must ensure the right to a fair trial and the effectiveness of insolvency (bankruptcy) proceedings is discussed, and the status of the person(s) involved and their procedural rights and obligations.

Keywords

• fraudulent bankruptcy
• right to a fair trial
• process of insolvency