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The article deals with the main stages of becoming a bankruptcy institute in Ukraine as a mechanism for regulating a market economy, examines the development of state regulation of economic relations in the field of bankruptcy in Ukraine, and presents problems and proposals for their solution. The bankruptcy procedure is distinguished and the national aspects of bankruptcy are emphasized. The problems of applying bankruptcy law have been identified. Gaps in national legislation have been identified. The approaches that were identified to identify the goals of the bankruptcy procedure are analyzed and the causes of bankruptcy of domestic enterprises are presented.Ukraine, as a country aimed at building a market economy, must have an effective bankruptcy institution. The goals of such an institute are to restore the debtor’s solvency and to preserve the business entity. For this purpose it is necessary to improve the normative-legal mechanism of the institute, which would take into account the state of the modern economy, the level of social development, the historical way of life of the people and set the goal of achieving not private interest, but the general goal – restoring the solvency of the debtor.Bankruptcy means liquidation, sale of property assets of the debtor in order to satisfy the claims of creditors. Liquidation is an extreme measure applied to the debtor if the debtor’s financial recovery measures did not bring a positive result. That is, bankruptcy law has two goals: restoring the solvency of the debtor, and in the event that such a restoration is impossible, satisfying the creditors’ claims in the most equitable way.

The Development of State Regulation of Economic Relations in Field of Bankruptcy in Ukraine