Open AccessISSUES OF COMPETITION OF THE RULES OF THE CODE OF UKRAINE ON BANKRUPTCY PROCEDURES AND THE LAW OF UKRAINE “ON EXECUTIVE PROCEEDINGS” IN CASES OF INSOLVENCY OF INDIVIDUALS
Author(s) -
S.V. Mіnkovskyi,
AUTHOR_ID,
Ye.V. Chypyzhenko,
AUTHOR_ID
Publication year - 2021
Publication title -
ekonomìka ta pravo
Language(s) - English
Resource type - Journals
eISSN - 2523-4838
pISSN - 1681-6277
DOI - 10.15407/econlaw.2021.04.032
Subject(s) - debtor , insolvency , bankruptcy , legislation , creditor , business , arrears , debt , law , solvency , economics , accounting , finance , market liquidity , political science
The Code of Ukraine on Bankruptcy Procedures is the first insolvency law codified in domestic legislation. The legislative novelty is the so-called consumer bankruptcy provided by the Code, the restoration of solvency through the settlement of problem debts of individuals, individuals – entrepreneurs to banks, microfinance organizations, arrears of taxes, fees and other mandatory payments within the framework of litigation, and in case of impossibility – their repayment (write-off) in the procedure of debt repayment. In addition, the new Code offers special conditions for addressing the issue of “foreign currency borrowers”, which has become relevant for many Ukrainians after the financial crisis of 2008. In general, the procedure for restoring the solvency of individuals is designed to encourage responsible borrowing, start or resume business, increase economic activity and taxable income, aimed at preventing crime and unemployment. Such a procedure is beneficial not only to the debtor, but also to the state. An individual, getting rid of debts, returns to active legal work, and the state returns another economic unit to an active lifestyle, acquires another taxpayer. In addition, the procedure provides creditors of the debtor – an individual with legal grounds for instalment and (or) write-off of part of the debt, as well as improving their own financial performance. However, currently many norms of the Code and other acts of the legislation of Ukraine are inconsistent, which causes conflicts during their practical application. The article considers some aspects that arise in cases of insolvency of individuals, individuals – entrepreneurs during the competition of the Code of Ukraine on Bankruptcy Procedures and the Law of Ukraine “On Enforcement Proceedings”, which relate to: suspension of enforcement proceedings during the moratorium on satisfaction of claims creditors; removal of arrests (encumbrances) in the procedure of debt repayment; consequences of the completion of the debt repayment procedure (including the exclusion of a person from the Unified Register of Debtors), identified problematic issues and proposals for their improvement by making appropriate changes to the legislation of Ukraine.